Rents surge across metros, increasing 10 percent in three months: Report

Bengaluru: Magicbricks, a major leading real estate platform, in its latest Rent Index report, has observed another sharp surge in home rents across major metros, with an average increase of 10 percent over the past three months.

The report highlights that Bengaluru (15.7 percent) and Pune (12.5 percent) recorded the steepest quarterly rental hikes, while rental growth in Noida (7.9 percent), Greater Noida (3.2 percent), and Gurugram (4.1 percent) moderated, reflecting early signs of demand stabilization.

The report attributes the moderation in NCR markets to a slowdown in rental demand. In Noida, rental demand declined by 3.3 percent, while Greater Noida recorded a 13.3 percent drop over the last quarter, coinciding with a significant rental rise over the previous year.

A deeper analysis of tenant preferences revealed distinct trends across cities. In premium rental markets like Mumbai (43 percent of rental demand), Gurugram (37 percent), and Bengaluru (26 percent), the demand was concentrated in the Rs 50,000–Rs 1,00,000 per month budget bracket.

Meanwhile, metros such as Ahmedabad (49 percent), Pune (38 percent), and Navi Mumbai (32 percent) saw demand largely dominated by a more affordable Rs 20,000–Rs 30,000 per month range.

In Greater Noida, despite increasing rents, affordability remained a key driver, with 86 percent of the rental demand focused on properties priced between Rs 10,000–Rs 20,000 per month.

Significantly, the Rent Index report also highlights a steady improvement in gross rental yields across most cities, making rental investments more attractive.

Ahmedabad emerged as the leader, with gross rental yield rising from 3.6 percent in Q1 2024 to 4.2 percent in Q1 2025.

Similar upward trends were observed in Bengaluru (from 3.6 percent to 3.8 percent), Hyderabad (from 3.4 percent to 3.7 percent), and Mumbai (from 3.8 percent to 3.9 percent) over the same period.