In the first half of 2025, India’s residential rental inflation showed signs of slowing, averaging between 7% and 9% across major baterybet metropolitan cities such as Delhi‑NCR, Mumbai, Bengaluru, Hyderabad, Pune, and Chennai, according to a report by NoBroker. This is a notable slowdown from the double-digit increases observed over the past few years, which had been driven by a combination of post-pandemic housing demand, limited supply of quality rental homes, and the resurgence of office-based work.

Experts suggest that this cooling trend could provide some relief to tenants, many of whom had been struggling with steep rent hikes that often outpaced their salary growth. While the overall national average shows moderation, the dynamics remain highly micro-market dependent. Certain neighborhoods, especially those connected to new metro lines, expressways, or commercial hubs, continue to witness rent spikes of over 15% year-on-year. In cities like Bengaluru’s Whitefield or Mumbai’s Thane region, proximity to improved infrastructure and IT parks is making apartments highly sought after, allowing landlords to maintain high rental premiums.

The report also notes a subtle shift in tenant preferences. Younger professionals and IT employees are increasingly favoring well-furnished, ready-to-move-in apartments near transit corridors rather than traditional larger units in city centers. This trend has influenced the type of properties being listed and rented, with a growing number of short-term rental contracts and co-living spaces emerging in Bengaluru, Pune, and Hyderabad.

For policymakers and urban planners, this data highlights the importance of addressing localized housing shortages and improving affordable housing options. Tenants may find some relief in overall rent moderation, but those looking to move to high-demand micro-markets should still anticipate significant price pressure. The rental market in India remains dynamic, with local infrastructure developments continuing to shape where prices rise and where they stabilize.