Rental Demand Rises 16% as Tenants Prefer Affordable 2 BHK Homes - Survey

Mumbai : India’s residential rental market continued to gain momentum in the April–June 2026 quarter, with rental demand rising 16% quarter-on-quarter (QoQ), according to the latest Magicbricks Rental Index. Rental supply increased by 4.5% QoQ, while rental values recorded a 2.2% quarterly rise.

Affordability remains a key factor shaping tenant preferences. Homes with monthly rents between ₹10,000 and ₹20,000 accounted for 35% of overall rental demand, making it the largest rental budget segment. The ₹20,000–₹30,000 category followed.

The data also indicates a potential mismatch between tenant preferences and available inventory, with a considerable portion of rental supply concentrated in higher-priced segments.

The 2 BHK configuration emerged as the most sought-after rental option, accounting for 46% of rental demand. The preference reflects tenants' search for a balance between living space, affordability and functionality.

The rental market is also seeing strong interest in semi-furnished homes, which accounted for more than half of rental demand during the quarter.

Rental demand increased across several major housing markets. Pune recorded a 20.2% QoQ increase, while Bengaluru registered a 13.4% rise during the quarter. Ahmedabad and Gurugram also recorded double-digit quarterly growth in rental demand.

The latest trends suggest that India's rental housing market is increasingly being driven by affordability, practical home configurations and ready-to-move-in features. For landlords and developers, aligning new rental inventory with these tenant preferences could become increasingly important as demand continues to evolve.

 By : The Realty Times — Real Estate News, Property Insights & Market Updates