Greater Noida, Delhi, Noida lead rental demand growth: Key factors fuelling the NCR market

Magicbricks has published its Rental Index for the July–September 2025 quarter. The quarter’s movement was shaped significantly by Delhi–NCR, where demand for rented homes surged in Greater Noida (29.5% Q-o-Q), Delhi (17.8% Q-o-Q) and Noida (10.8% Q-o-Q). Kolkata also recorded a 5.4% Q-o-Q rise, indicating sustained traction.

Magicbricks Chief Marketing Officer Mr. Prasun Kumar cited infrastructure upgrades, better connectivity and a steady flow of mid-sized homes behind continued momentum for rented homes in NCR.

On the other hand, several major cities, including Chennai, Bengaluru, Hyderabad, Pune and Mumbai, witnessed softer shifts with rental demand easing between –1.2% and –7.2% Q-o-Q. On the supply front, Delhi registered the sharpest rise at 17.6% Q-o-Q, followed by Ahmedabad at 6.5%, supporting the broader trend of the market moving toward balance."

The rental index indicates that after three consecutive quarters of strong rental activity, the market is entering a phase of consolidation. Average national rents increased by 4.4% quarter-on-quarter (Q-o-Q) and 18.1% year-on-year (Y-o-Y), with the report highlighting slight moderation as both demand and supply edge toward equilibrium.

During the period, national rental demand rose by 0.2% Q-o-Q and 0.4% Y-o-Y, while supply increased by 0.6% Q-o-Q and 5.9% Y-o-Y, suggesting a closer match between available listings and tenant interests.

Average rents continued to climb across most regions, with Thane posting the largest quarterly increase at 12.5%, followed by Chennai at 6.7%, Mumbai at 4.9%, and Delhi with 4.5%.

Magicbricks Chief Marketing Officer Mr. Prasun Kumar said , “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.”

On a national scale, tenant preferences remained stable, with two-bedroom homes making up 44% of demand, one-bedroom units at 32%, and semi-furnished homes accounting for 51% of demand and 54% of supply. Mid-sized properties between 500 and 1,500 square feet continued to dominate, representing 77% of tenant choice.