Archive · 19 Nov 2025
NCR Leads Rental Demand Growth in Q3 2025
In the July–September 2025 quarter, the rental market in India saw some big changes.
The National Capital Region (NCR), which includes Delhi, Noida, and Greater Noida, had the highest demand for rented homes.
Kolkata also saw an increase in demand.
However, cities like Chennai, Bengaluru, Hyderabad, Pune, and Mumbai had less demand.
The average rent in India went up by 4.4% in the last quarter and 18.1% in the last year.
The market is now becoming more balanced, which could make it easier for people to find homes and for homeowners to predict what will happen in the future.
Greater Noida, Delhi, Noida top rental demand growth in Q3 2025
Kolkata also records rise in rental demand
Chennai, Bengaluru, Hyderabad, Pune, Mumbai witness softer shifts
National average rents increase by 4.4% Q-o-Q and 18.1% Y-o-Y
Market enters phase of consolidation with demand and supply edging toward equilibrium
- Who
- Tenants and homeowners in India's rental market
- What
- Experienced changes in rental demand and supply
- When
- In the July–September 2025 quarter
- Where
- India, particularly the National Capital Region (NCR) and Kolkata
- Why
- Due to infrastructure upgrades, better connectivity, and a steady flow of mid-sized homes in NCR, and market balance in other cities
Supply and Demand Balance
Affordability and Predictability
Market Trend
Supply and Demand Balance
The market is moving toward balance with supply catching up to demand.
Affordability and Predictability
This balance is likely to improve affordability for tenants and create a more predictable environment for homeowners and investors.
- Top rental demand growth cities
- Greater Noida (29.5% Q-o-Q), Delhi (17.8% Q-o-Q), Noida (10.8% Q-o-Q), Kolkata (5.4% Q-o-Q)
- Cities with softer shifts
- Chennai, Bengaluru, Hyderabad, Pune, Mumbai (-1.2% to -7.2% Q-o-Q)
- Sharpest supply rise
- Delhi (17.6% Q-o-Q), Ahmedabad (6.5% Q-o-Q)
- National average rent increase
- 4.4% Q-o-Q, 18.1% Y-o-Y
- Tenant preferences
- Two-bedroom homes (44%), one-bedroom units (32%), semi-furnished homes (51% demand, 54% supply), mid-sized properties (500-1500 sq. ft., 77% of tenant choice)
Sources
Real estate growth momentum strong, sentiment index rises in Q3: Report
Real estate pre-sales surge 50% in Q2, Nomura says FY27 demand cycle getting stronger
Greater Noida, Delhi, Noida lead rental demand growth: Key factors fuelling the NCR market
