India Housing Rents Stabilize After Three Years of Steep Hikes

India housing rental market is stabilizing in 2025, after years of rapid expansion, said a new report by NoBroker. Rental inflation in major cities softened to seven to nine percent during the first half (H1) of 2025, from the sharp 12 to 24 percent year-on-year increases seen from 2021 through 2024.

"Our H1 2025 analysis captures a rent inflation moderation, with levels settling at seven to nine percent  in top metropolitan cities such as Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune. This is a significant change compared to the previous year. The moderation in rental pressure is a welcome change for renters," said Saurabh Garg, co-founder and chief business officer, NoBroker.com. 

Key Highlights:

• Rental inflation slows to seven to nine percent in H1 2025 across top cities
• Bengaluru suburbs like KR Puram and Bellandur still see 10 to 12 percent rent growth
• Peripheral areas like Devanahalli poised for 12 to 20 percent rental surge

Even with the slowdown, rent growth continues to exceed wage growth, pinching city household pockets. Between 2020 and 2024, rents increased by 35 percent to 80 percent in Indian cities, while in 2025, rent inflation continues to be higher than total consumer inflation and wage growth.

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In Bengaluru, previously India's hottest rental market, rent increases slowed to 8 percent in H1 2025, but districts such as Electronic City (11 percent), KR Puram (12 percent), and Bellandur (12 percent) continued to post strong growth. Ramamurthy Nagar registered a 10 percent increase, as the popularity of BTM Layout with students and professionals again spurred further expansion.

Peripheral regions like Sarjapur Road, KR Puram, and Devanahalli will lead the next round of rental appreciation as a result of metro and infrastructure developments. Rents in Devanahalli, at present Rs. 12,000 to Rs. 17,000 for a 2BHK, can touch 12 to 20 percent higher within a year, estimated NoBroker.