India’s Residential Rent Growth Slows to 7–9% in H1 2025, but Infrastructure Hubs Still See Sharp Hikes

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Residential rental growth across India’s top cities slowed down in the first half of 2025, with average increases moderating to 7–9% year-on-year, according to real estate platform NoBroker. The decline follows several years of double-digit hikes, offering some relief to tenants after a prolonged period of steep rent inflation.

The data covers six key metropolitan markets: Mumbai, Delhi-NCR, Bengaluru, Pune, Chennai, and Hyderabad. While the general trend indicates easing rental pressure due to increased housing supply, certain infrastructure-driven micro-markets continue to experience steep hikes, particularly near metro lines, new airports, and major IT corridors.

Despite the moderation, rent increases are still higher than inflation, with India’s consumer price index averaging between 2.8% and 3.3% during the same period. As a result, tenants are still feeling the financial strain, especially in prime and well-connected neighborhoods.

In Bengaluru, rents surged 15.7%, making it the highest among major cities in Q1 2025, followed by Pune at 12.5%, and Mumbai at 10.2%, according to Magicbricks’ data. Delhi saw an average hike of 7.3%, while Noida posted an increase of 7.9%.

Micro-markets with strong infrastructure connectivity have outpaced citywide averages. In Pune, locations like Hinjewadi, Wakad, Baner, and Balewadi, which are areas near the Hinjewadi-Shivajinagar metro corridor, saw rental hikes of 10–25%, and property prices rose up to 40%.

In Delhi-NCR, areas along Dwarka Expressway, Golf Course Extension, and parts of Noida-Greater Noida Expressway also witnessed rent increases between 11–15%, largely due to new metro access and ongoing development.

Meanwhile, luxury and central neighborhoods are experiencing a surge in high-end rental demand. A Savills India report found premium properties in central Delhi recording a 42% spike, and top segments in Bengaluru seeing growth of 30–32%.

While the broader rental market shows signs of cooling, the disparity between infrastructure-backed localities and others continues to widen, suggesting that future rent trends will remain tied closely to urban transit and development plans.