Delhi-NCR drives rental housing in Jul-Sept

India's rental housing market saw continued momentum in the July-September quarter even as activity began to stabilise after three quarters of sharp movement. Average rents rose 4.4% sequentially and 18.1% on-year, while tenant activity varied across major metros, showed a Magicbricks study.

The July-August period marked a consolidation phase, with moderation in both demand and supply moving the market towards a steadier rhythm. National rental demand edged up 0.2% sequentially and 0.4% on-year, while supply increased 0.6% on-quarter and 5.9% on-year, pointing to a gradual alignment between tenant interest and available listings.

Delhi-NCR was the key driver of the quarter's movement. Demand surged in Greater Noida (29.5% QoQ), Delhi (17.8% QoQ) and Noida (10.8% QoQ). Kolkata posted a 5.4% QoQ rise, indicating sustained traction, the report showed.


"While the national rental market has begun to stabilise after several quarters of rapid growth, the continued momentum in NCR shows how infrastructure upgrades, better connectivity and a steady flow of mid-sized homes are sustaining tenant interest," said Prasun Kumar, CMO, Magicbricks.

According to him, the moderation in rents across most cities also indicates a healthy shift toward balance, where supply is catching up with demand. This phase is likely to improve affordability for tenants while creating a more predictable environment for homeowners and investors.

Several major cities, including Chennai, Bengaluru, Hyderabad, Pune and Mumbai, witnessed softer shifts, with demand easing between - 1.2% and -7.2% QoQ. On the supply side, Delhi saw the sharpest increase at 17.6% QoQ, followed by Ahmedabad at 6.5%, reinforcing the broader trend towards balance.

According to Magicbricks, average rents continued to rise across most markets. Thane led with a 12.5% QoQ increase, followed by Chennai at 6.7% QoQ and Mumbai at 4.9% QoQ. Delhi recorded 4.5% QoQ growth, reflecting steady absorption.