India’s rental market booms amid urban demand, B'luru leads with highest quarterly rental hike

India's real estate sector is experiencing a significant upswing, with rental rates in metropolitan cities rising sharply and a growing interest in homes at popular tourist destinations. Recent data from property search platform Magicbricks reveals that average residential rentals in major metros increased by 10 percent between January and March 2025.

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Bengaluru and Pune led this trend with the highest quarterly rental hikes, registering increases of 15.7 percent and 12.5 percent, respectively. Noida followed with a 7.9 percent rise in the same period. The surge is being attributed to a combination of job growth, changing work models, and a fundamental shift in housing preferences.

In cities like Bengaluru and Pune, the sharp rental escalation reflects more than just a post-pandemic rebound. These tech-focused urban hubs are witnessing rapid expansion in innovation sectors, including IT, research and development, and start-ups. The influx of professionals and the shift toward hybrid work arrangements are driving the demand for rental properties near commercial and tech corridors.

As demand continues to outpace supply in key regions, rental prices are expected to maintain their upward trajectory in the near term.