India’s Rental Market Growth: 2025 Insights

Rank	Region Name	Average Rent (INR/month)
1	Maharashtra	40,000
2	Delhi	34,500
3	Karnataka	30,000
4	Haryana	28,000
5	Telangana	27,000
6	Chandigarh	26,500
7	Tamil Nadu	25,000
8	Uttar Pradesh	24,000
9	Gujarat	22,000
10	Punjab	20,500
11	DNHDD	20,000
12	West Bengal	19,500
13	Goa	19,000
14	Kerala	18,000
15	Andhra Pradesh	17,500
16	Puducherry	17,000
17	Rajasthan	16,500
18	Andaman and Nicobar Islands	16,500
19	Madhya Pradesh	15,500
20	Odisha	14,500
21	Jammu and Kashmir	14,500
22	Uttarakhand	13,500
23	Himachal Pradesh	13,500
24	Jharkhand	13,500
25	Ladakh	13,500
26	Lakshadweep	13,500
27	Bihar	12,500
28	Chhattisgarh	12,500
29	Assam	11,500
30	Sikkim	11,500
31	Meghalaya	10,500
32	Tripura	10,500
33	Manipur	10,000
34	Arunachal Pradesh	9,500
35	Mizoram	9,500
36	Nagaland	9,500

India’s residential rental market concludes 2025 with a strong annual growth trajectory of 10-13%, moderated by unprecedented housing completions in the last quarter.

This table presents year-end averages for a typical 2BHK apartment, compiled from November 2025 data by MagicBricks, 99acres, and Housing.com, along with forecasts that consider winter migration slowdowns and supply increases driven by policy changes.

Maharashtra surpasses ₹40,000 as Mumbai’s redevelopment initiatives under the SRA contribute only 15,000 affordable units, while 200,000 are required.

Delhi approaches ₹34,500, buoyed by a commercial boom in Aerocity. Karnataka’s Bengaluru reaches ₹30,000, supported by global capability centers investing $20 billion in expansion efforts.

Haryana’s ₹28,000 reflects the return-to-work mandates in Gurugram, which have filled 90% of Grade-A office spaces.

Telangana’s Hyderabad maintains a rate of ₹27,000, bolstered by pharmaceutical corridors generating $15 billion in exports.

Chandigarh upholds its exclusivity at ₹26,500 through stringent enforcement of its master plan.

Costliest States for Renting a House

Maharashtra leads the rankings as Mumbai accounts for 7% of the national GDP, driven by finance, media, and port activities, while simultaneously grappling with a shortage of 1.5 million units according to BMC estimates.

The slum rehabilitation efforts displaced 50,000 families in 2025, exacerbating the mid-segment supply constraints and resulting in a 45% increase in rents in Andheri since 2021.

Developers have focused on luxury projects, with 60% of the 50,000 new units priced above ₹2 crore, thereby intensifying competition among 2BHK tenants.

In Delhi, the average rent of ₹34,500 is influenced by the 35 million residents of the NCR and the 3 million formal jobs available.

The partial operations of the Regional Rapid Transit System have reduced commute times in Ghaziabad by 30 minutes, leading to a 25% increase in rentals in Sector 62.

Karnataka generates ₹30,000, bolstered by Bengaluru’s 2.2 million IT-BPM workforce, with average salaries reaching ₹15 lakh.

The city welcomed 300,000 migrants in 2025; however, delays in metro Phase 2B have restricted new launches to 35,000 units.

Gurugram in Haryana supports ₹28,000 through the presence of 1,500 multinational headquarters and a 12% decrease in vacancy rates.

In Telangana, Hyderabad’s software exports amount to $35 billion, employing 1.1 million individuals and resulting in a 30% increase in rents in Madhapur since 2022.

Chandigarh commands ₹26,500 due to its 1.2 million residents enjoying the highest green space per capita in India at 114 sqm, attracting 60,000 transferees annually.

Tamil Nadu achieves ₹25,000 as Chennai’s $55 billion industrial output from the electronics and automotive sectors sustains 700,000 jobs.

Uttar Pradesh reaches ₹24,000, driven by the runway tests at Noida’s Jewar Airport, which are expected to create 100,000 construction jobs.

States with Average Rental cost

Gujarat’s Ahmedabad maintains ₹22,000 through GIFT City’s $30 billion in assets under management and Sanand’s semiconductor fabrication facility.

Punjab rises to ₹20,500 with Mohali’s IT-SEZ contributing an additional 20,000 job positions. DNHDD achieves ₹20,000 through Silvassa’s 5,000 manufacturing units that capitalize on GST exemptions.

West Bengal’s Kolkata secures ₹19,500 with New Town’s advanced infrastructure accommodating 100,000 technology professionals.

Goa, valued at ₹19,000, draws in 50,000 remote workers; Anjuna’s villa transformations surged following visa reforms. Kerala’s stability at ₹18,000 is attributed to ₹3 lakh crore in NRI investments supporting Kochi’s metro expansion.

Andhra Pradesh advances to ₹17,500 as Visakhapatnam’s port processes 80 million tonnes, reflecting a 10% increase.

Puducherry’s ₹17,000 benefits from its heritage tourism and proximity to OMR. Rajasthan’s Jaipur expands to ₹16,500 through Neemrana’s Japanese industrial zone.

States with lowest Rental Costs

Madhya Pradesh’s Indore achieves ₹15,500 due to its logistics hub designation, handling 5 million tonnes each year.

Odisha’s Bhubaneswar and Jammu and Kashmir’s Srinagar both reach ₹14,500; the former through ITIR approvals, while the latter benefits from a 60% recovery in tourism.

Uttarakhand and Himachal Pradesh, each at ₹13,500, attract 18 million pilgrims and adventurers to Haridwar and Shimla.

Jharkhand’s Ranchi maintains ₹13,500, even as coal royalties of ₹70,000 crore flow slowly into urban housing.

Bihar and Chhattisgarh, both at ₹12,500, contribute 4,000 smart city units each in Patna and Naya Raipur, yet encounter annual outflows of 80,000. Assam’s Guwahati reaches ₹11,500 through refinery expansions, but increases in flood insurance limit growth.

Northeastern regions below ₹12,000 show signs of infrastructure delays. Meghalaya and Tripura, at ₹10,500, face 70% gaps in rural electrification.

Manipur, Arunachal Pradesh, Mizoram, and Nagaland, ranging from ₹9,500 to ₹10,000, deal with border sensitivities and 95% hilly terrain, which raises foundation costs by 60%.

Island regions restrict growth: The Andamans at ₹16,500 cater to defense requirements, while Ladakh and Lakshadweep, both at ₹13,500, restrict civilian stock to 30% of land.

Future of Rental accommodations in India

National completions reached 1.5 million units—the highest ever—under RERA, alleviating Q4 pressure by 2%.

The RBI’s 50 basis points repo rate reduction to 5.5% prompted 15% of buyers to adopt a wait-and-watch approach, thereby enhancing rental markets.

Urban unemployment fell to 6.5%, according to the PLFS report from November, contributing 9 million jobs concentrated in the top 10 states.

Infrastructure investments amounting to ₹12 lakh crore focus on 10,000 km of highways, resulting in a 15% increase in peripheral rents along these corridors.

Southern states attracted 48% of the $95 billion in FDI, as reported by DPIIT at year-end. Remittances surpassed ₹10 lakh crore, providing financial support to Kerala and Punjab.

Demographic trends intensify demand: 80% of renters under the age of 35 prefer commutes of one hour or less; Delhi’s RRTS and Bengaluru’s Suburban Rail are expected to offer relief by 2027.

Yield compression to 4% in metropolitan areas is redirecting capital towards tier-2 cities like Lucknow, which offers a yield of 6.5%.

PMAY 2.0 has successfully delivered 80,000 rental units, specifically aimed at migrants from Uttar Pradesh and Bihar.

The ₹20,000 crore package for the Northeast is allocated for 500 km of road construction, anticipating a 25% increase in rents by 2030.

The conclusion of 2025 highlights the stark urban-rural divide in India. Tenants in Maharashtra allocate 50% of their income to rent, in contrast to just 18% in Bihar, according to NSSO data.

To sustain an 8.5% GDP growth rate, the country requires 3 million new housing units annually to ensure equitable access, transforming high rents from a burden into a signal for inclusive planning.

Source

• 99acres. (2025, November 11). Rental market report November 2025.
• DPIIT. (2025, November 11). FDI yearly compilation 2025. Department for Promotion of Industry and Internal Trade.
• NSSO. (2025). Household consumption expenditure survey 2024-25. National Sample Survey Office.