Rental demand rises in Gurugram, but affordability curbs rent growth

Rental demand rises in Gurugram, but affordability curbs rent growth

• Gurugram rental market adjusts as tenants seek affordability
• Demand rises for compact, affordable 1-2 BHK units
• Supply remains skewed toward larger, higher-priced homes

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After years of sharp rental inflation, Gurugram’s housing market appears to be entering a correction phase, marked by cautious tenants and selective demand.

According to Magicbricks data, the October–December 2025 quarter saw higher rental enquiries, but with tenants increasingly prioritising affordability, average rents edged lower as landlords adjusted to resistance in premium pricing.

During the October-December 2025 quarter, rental demand in Gurugram rose 3.6 percent quarter-on-quarter (QoQ) and 13.1 percent year-on-year (YoY), highlighting sustained interest among tenants. By contrast, the supply of rental homes remained largely stable, declining 0.6 percent QoQ, while increasing 7.5 percent YoY, showed the data which was released on February 18.

Demand concentrated in compact, affordable units

The rental preferences show a clear tilt towards compact housing. One- and two-bedroom units together accounted for 75 percent of total rental demand, underscoring affordability-led choices. In contrast, supply continues to be skewed toward larger homes. 3-BHK units made up 52 percent of listings, highlighting a significant structural mismatch between what tenants want and what is available, the data showed.

Around 44 percent of rental demand was concentrated in the Rs 10,000–Rs 20,000 per month range, while supply was disproportionately weighted toward higher rent segments, with 36 percent of listings priced between Rs 50,000 and Rs 1 lakh per month, data showed.

Market observers said this trend reflects a recalibration of rental expectations, driven by affordability considerations following a period of strong rental inflation in prior years.

Locality rental trends

Recent data from Magicbricks’ rental listings illustrate how rents vary across Gurugram localities, highlighting affordability pressures. For example, in mid-2025, average 2-BHK rents in popular sectors such as DLF Phase 2 were around Rs 55,000 per month, while 3-BHKs fetched around Rs 80,000 monthly rental.

In Sector 56, typical rents hovered around Rs 38,500 for 2-BHKs and roughly Rs 49,800 for 3-BHKs. In more affordable pockets like Sector 36 Sohna, 2-BHKs averaged around Rs 17,800, and 3-BHKs were near Rs 23,000 per month.

Brokers said that Gurugram’s rental demand remains structurally strong, but renters are far more value-conscious today.

Nitin Malik, a real estate broker active in Gurugram said that employment growth and corporate leasing activity continue to support rental demand in Gurugram, but affordability thresholds are now acting as a natural ceiling on rents, particularly in non-premium locations.

“After sharp rental appreciation over the past few years, tenants are resisting further increases, especially in larger homes, forcing landlords to adjust pricing expectations,” he said.