Magicbricks, India’s leading real estate platform, has unveiled new insights highlighting a significant surge in rental values across key Indian cities, making renting increasingly unaffordable for end-users. The Rent to Price Growth Differential (RPGD) indicates that cities where rental appreciation has outpaced capital value growth—such as Mumbai (3.61), Greater Noida (2.27), Delhi (2.12), Chennai (1.76), and Ahmedabad (1.46)—are becoming costlier for tenants.

As rents soar, more tenants may be encouraged to reconsider homeownership as a more financially viable alternative. According to the report, in Q4’ 2024 alone, average rents increased 4.1 per cent Q-o-Q and 18.4 per cent Y-o-Y to touch Rs 37.27 psf per month as against Rs 31.48 psf per month in Q4’ 2023. The increase is most evident in cities such as Greater Noida (36.3 per cent Y-o-Y), Delhi (27.0 per cent Y-o-Y), Bengaluru (23.2 per cent Y-o-Y) and Noida (17.3 per cent Y-o-Y).

However, in cities where RPGD remains below 1—Gurugram (0.58), Pune (0.38), and Hyderabad (0.31)—renting is still more affordable compared to buying, maintaining the viability of the rental market. Despite short-term fluctuations, the rental sector continues to demonstrate strong resilience, driven by urban migration and a growing workforce seeking flexible, well-located housing solutions.

According to Prasun Kumar, Chief Marketing Officer, Magicbricks “The demand for premium rental accommodations is rising sharply, particularly in furnished and semi-furnished segments, as tenants prioritize lifestyle amenities and convenience. However, rental price inflation is reshaping housing choices, pushing demand towards suburban and peripheral locations, thereby creating new investment opportunities in emerging rental hubs.”