Report Overview

India Rental Property Market – Industry Trends & Forecast Report, 2030

India Rental Property Market size was estimated at USD 34.18 billion in 2023. During the forecast period between 2024 and 2030, India Rental Property Market size is projected to grow at a CAGR of 9.75% reaching a value of USD 42.38 billion by 2030. Prominent drivers of the market include the growing urban population, rising property prices, and an increasing preference for rental housing among young professionals in metropolitan areas. Urban migration continues to fuel demand for rental properties, especially in major cities where property prices have risen by 15–20% since the pre-pandemic period. Limited supply of move-in-ready homes, comprising only 21% of available inventory, has further contributed to higher rental rates. Initiatives like Affordable Rental Housing Complexes (AHRC) aim to address affordability challenges while supporting economically weaker sections. Technological advancements and property management firms are transforming the rental market by bridging gaps between landlords and tenants, providing transparency, and converting unsold inventories into rental properties. Cities like Mumbai, Bangalore, and Hyderabad are experiencing robust growth, supported by favorable government policies and increasing demand for co-living and shared rental spaces. As urbanization progresses, India’s rental property market is set to expand significantly, driven by better operational frameworks and evolving tenant preferences.

Rental Property – Overview

A rental property is real estate, such as residential, commercial, or industrial spaces, owned by an individual, company, or organization and leased to tenants in exchange for regular rent payments. These properties generate income for the owner while providing tenants access to living, working, or operational spaces without requiring ownership. Residential rental properties include apartments, houses, or condominiums, while commercial spaces comprise offices, retail outlets, warehouses, and industrial properties cover factories or logistics facilities. Rental agreements define the terms of use, including rent, duration, and the responsibilities of both landlords and tenants, ensuring a mutually beneficial arrangement.

India Rental Property Market

Growth Drivers

Government Initiatives and Policies

India Rental Property Market is experiencing significant growth, driven by proactive government initiatives and policies aimed at enhancing transparency, accessibility, and affordability. Key programs like Pradhan Mantri Awas Yojana (PMAY) and Affordable Rental Housing Complexes (ARHCs) have boosted affordable housing availability for economically weaker sections and urban migrants, fostering inclusive urban development. The Real Estate Regulation and Development Act (RERA) has improved accountability and consumer confidence, while amendments to the Benami Transactions Act and the introduction of GST have increased transparency and streamlined taxation. Additionally, measures such as stamp duty reductions and project deadline extensions during the pandemic have ensured a steady housing supply and market resilience. Collectively, these efforts are reshaping the rental property landscape, creating a conducive environment for sustained growth and aligning with the broader goal of "Housing for All."

Challenges

Surging Property Rentals

The significant surge in rental prices across India's major cities, particularly in Bengaluru, Pune, Kolkata, and Chennai, has placed considerable pressure on the growth of the rental property market. Rental values have increased by up to 72% from the end of 2021 to the first half of 2024. The main drivers behind this sharp increase include the return of IT professionals to offices, the re-entry of expatriates into the market, and a shortage of ready-to-move-in homes. With many people seeking high-quality accommodations in prime locations, rental demand has outpaced the supply of available homes, further driving up costs. This rise in rental prices limits the affordability of rental properties, restricting access for many potential renters and stunting the overall growth of the market. As rental prices continue to soar, the demand for affordable housing has become an increasingly urgent issue, placing further strain on market dynamics.

Impact of Escalating Geopolitical Tensions on India Rental Property Market

Escalating geopolitical tensions among countries and further spreading across the major regions could have a significant impact on the growth of India Rental Property Market. Rising uncertainties due to global conflicts could lead to an increasing demand for rental properties as individuals and expatriates seek safer, more stable environments. The influx of international professionals relocating to India, particularly from conflict zones, could further strain the rental market, driving up prices in major cities. Additionally, heightened geopolitical tensions may disrupt supply chains, delaying the construction of new housing and limiting the availability of ready-to-move-in homes. As a result, rental costs are likely to rise, making affordability an ongoing challenge for many potential renters in urban areas.

India Rental Property Market

Segmental Coverage

India Rental Property Market – By Property Type

By property type, India Rental Property Market is divided into Residential Properties, Commercial Properties, and Industrial Properties segments. The residential properties segment holds the highest share in India Rental Property Market by property type, encompassing various real estate options designed for human habitation. This includes flats and apartments, ranging from luxury high-rises to more affordable options, independent houses and villas offering greater privacy and space, condos with private ownership and shared amenities, and townhouses that combine features of both detached homes and apartments. Residential properties are particularly favored due to accessible financing options, such as home loans, and their ability to generate consistent rental income. Moreover, with steady property value appreciation over time, they present excellent long-term investment opportunities in India’s rental market. This growing segment is further driven by strong demand for housing, particularly in urban areas, where residential real estate has proven to be one of the most resilient investment options. In fact, the market experienced record growth in 2023, fueled by rising urbanization, increased income levels, and an ongoing demand for affordable luxury homes. Despite facing global economic challenges, India’s residential real estate sector has demonstrated remarkable resilience, positioning it for continued growth in 2024. With strong economic indicators and a rapidly expanding middle class, residential properties will remain a key segment in India Rental Property Market, ensuring sustained demand and long-term profitability.

India Rental Property Market – By Tenant Type

Based on tenant type, India Rental Property Market is bifurcated into Individual Tenants and Corporate Tenants segments.

India Rental Property Market – By Duration

By duration, India Rental Property Market is bifurcated into Short-term Rentals and Long-term Rentals segments.

India Rental Property Market – By Pricing

By pricing, India Rental Property Market is divided into Affordable, Mid-Tier, and Luxury segments. The affordable segment holds the highest share in India's predominantly middle and lower-middle-class population makes affordable housing a top priority. Rapid urbanization and increased city job opportunities drive demand for affordable rental properties. Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) have further spurred affordable housing development and provided subsidized home loans. Economic constraints and limited availability of affordable homes for sale have also made renting a more attractive option, especially for young professionals. Additionally, investors are drawn to the stable demand and consistent rental yields of affordable rental properties, solidifying their dominance in the market.

India Rental Property Market – By Region

The in-depth research report on India Rental Property Market covers the market in the country’s major regions: North India, South India, East India, and West India regions. South India holds the highest share in India Rental Property Market and is expected to maintain its dominance during the forecast period, driven by strong demand, diverse housing options, and favorable market dynamics. Cities like Bangalore, Chennai, Hyderabad, and Kochi play a key role, supported by rapid urbanization, economic growth, and thriving sectors such as IT and services. Bangalore, often called India’s Silicon Valley, leads the market due to its status as a technology and startup hub, attracting young professionals and expatriates seeking rental homes near work centers and vibrant amenities. Chennai, with its strong manufacturing, education, and healthcare sectors, offers a variety of rental options for migrants and students, ranging from affordable housing in suburbs to premium apartments along the coastline. Hyderabad’s growing IT and pharmaceutical industries, along with infrastructure projects like metro rail expansion, have bolstered its appeal among tech professionals and investors, contributing to a diverse rental market that includes luxury apartments and affordable housing. Kochi, known for its port activities and tourism, has seen growth in its rental market thanks to infrastructure improvements such as the Kochi Metro, attracting a mix of locals, expatriates, and tourists seeking short-term rentals. Overall, South India's rental housing market thrives on economic vitality, demographic diversity, and infrastructure development, with each city offering unique opportunities and contributing to the region’s pivotal role in shaping India's evolving rental housing sector.

Competitive Landscape

Major players operating in India Rental Property Market include NoBroker Property Management Services, DLF Ltd, Godrej Industries Ltd, Knight Frank India Pvt Ltd, Prestige Estates Project Ltd, Lodha Group, TATA Housing, L&T Realty Ltd, Oberoi Realty Ltd, and Brigade Group. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Property Type

• Residential Properties

• Commercial Properties

• Industrial Properties

By Tenant Type

• Individual Tenants

• Corporate Tenants

By Duration

• Short-term Rentals

• Long-term Rentals

By Pricing

• Affordable

• Mid-Tier

• Luxury

By Region

• North India

• South India

• East India

• West India

1. Research Framework       
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Rental Property Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Government Initiatives and Policies
         2. Rapid Urbanization and Population
         3. Rising Migrant Workforce
      2. Restraints
         1. High Rental Costs
         2. Regulatory Challenges
      3. Opportunities
         1. Rising Co-living Spaces
         2. Growing Demand for Smart and Green Buildings
      4. Challenges
         1. Lack of Standardized Practices
         2. Economic Volatility
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Rental Property Market: Marketing Strategies
5. India Rental Property Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Property Type
         1. Residential Properties
         2. Commercial Properties
         3. Industrial Properties
      2. By Tenant Type
         1. Individual Tenants
         2. Corporate Tenants
      3. By Duration
         1. Short-term Rentals
         2. Long-term Rentals
      4. By Pricing
         1. Affordable
         2. Mid-Tier
         3. Luxury
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. North India Rental Property Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Property Type
      2. By Tenant Type
      3. By Duration
      4. By Pricing
7. South India Rental Property Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Property Type
      2. By Tenant Type
      3. By Duration
      4. By Pricing
8. East India Rental Property Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Property Type
      2. By Tenant Type
      3. By Duration
      4. By Pricing
9. West India Rental Property Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Property Type
      2. By Tenant Type
      3. By Duration
      4. By Pricing
10. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Rental Property Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
11. Impact of Escalating Geopolitical Tensions on India Rental Property Market
12. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. NoBroker Property Management Services
    2. DLF Ltd
    3. Godrej Industries Ltd
    4. Knight Frank India Pvt Ltd
    5. Prestige Estates Project Ltd
    6. Lodha Group
    7. TATA Housing
    8. L&T Realty Ltd
    9. Oberoi Realty Ltd
    10. Brigade Group
    11. Other Prominent Players
13. Key Strategic Recommendations
14. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Rental Property Segmentation

Figure 2       India Rental Property Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Rental Property Market Size, By Value (USD Billion), 2019–2030

Figure 5       India Rental Property Market Share, By Property Type, By Value, 2019–2030

Figure 6       India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Figure 7       India Rental Property Market Share, By Duration, By Value, 2019–2030

Figure 8       India Rental Property Market Share, By Pricing, By Value, 2019–2030

Figure 9       North India Rental Property Market Size, By Value (USD Billion), 2019–2030

Figure 10     North India Rental Property Market Share, By Property Type , By Value, 2019–2030

Figure 11     North India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Figure 12     North India Rental Property Market Share, By Duration, By Value, 2019–2030

Figure 13     North India Rental Property Market Share, By Pricing, By Value, 2019–2030

Figure 14     South India Rental Property Market Size, By Value (USD Billion), 2019–2030

Figure 15     South India Rental Property Market Share, By Property Type , By Value, 2019–2030

Figure 16     South India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Figure 17     South India Rental Property Market Share, By Duration, By Value, 2019–2030

Figure 18     South India Rental Property Market Share, By Pricing, By Value, 2019–2030

Figure 19     East India Rental Property Market Size, By Value (USD Billion), 2019–2030

Figure 20     East India Rental Property Market Share, By Property Type , By Value, 2019–2030

Figure 21     East India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Figure 22     East India Rental Property Market Share, By Duration, By Value, 2019–2030

Figure 23     East India Rental Property Market Share, By Pricing, By Value, 2019–2030

Figure 24     West India Rental Property Market Size, By Value (USD Billion), 2019–2030

Figure 25     West India Rental Property Market Share, By Property Type , By Value, 2019–2030

Figure 26     West India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Figure 27     West India Rental Property Market Share, By Duration, By Value, 2019–2030

Figure 28     West India Rental Property Market Share, By Pricing, By Value, 2019–2030

List of Tables

Table 1        India Rental Property Market Size, By Value (USD Billion), 2019–2030

Table 2        India Rental Property Market Share, By Property Type, By Value, 2019–2030

Table 3        India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Table 4        India Rental Property Market Share, By Duration, By Value, 2019–2030

Table 5        India Rental Property Market Share, By Pricing, By Value, 2019–2030

Table 6        North India Rental Property Market Size, By Value (USD Billion), 2019–2030

Table 7        North India Rental Property Market Share, By Property Type , By Value, 2019–2030

Table 8        North India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Table 9        North India Rental Property Market Share, By Duration, By Value, 2019–2030

Table 10      North India Rental Property Market Share, By Pricing, By Value, 2019–2030

Table 11      South India Rental Property Market Size, By Value (USD Billion), 2019–2030

Table 12      South India Rental Property Market Share, By Property Type , By Value, 2019–2030

Table 13      South India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Table 14      South India Rental Property Market Share, By Duration, By Value, 2019–2030

Table 15      South India Rental Property Market Share, By Pricing, By Value, 2019–2030

Table 16      East India Rental Property Market Size, By Value (USD Billion), 2019–2030

Table 17      East India Rental Property Market Share, By Property Type , By Value, 2019–2030

Table 18      East India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Table 19      East India Rental Property Market Share, By Duration, By Value, 2019–2030

Table 20      East India Rental Property Market Share, By Pricing, By Value, 2019–2030

Table 21      West India Rental Property Market Size, By Value (USD Billion), 2019–2030

Table 22      West India Rental Property Market Share, By Property Type , By Value, 2019–2030

Table 23      West India Rental Property Market Share, By Tenant Type, By Value, 2019–2030

Table 24      West India Rental Property Market Share, By Duration, By Value, 2019–2030

Table 25      West India Rental Property Market Share, By Pricing, By Value, 2019–2030

Table 26    NoBroker Property Management Services Company Overview  

Table 27    NoBroker Property Management Services Financial Overview  

Table 28    DLF Ltd Company Overview  

Table 29    DLF Ltd Financial Overview  

Table 30    Godrej Industries Ltd Company Overview  

Table 31    Godrej Industries Ltd Financial Overview  

Table 32    Knight Frank India Pvt Ltd Company Overview  

Table 33    Knight Frank India Pvt Ltd Financial Overview  

Table 34    Prestige Estates Project Ltd Company Overview  

Table 35    Prestige Estates Project Ltd Financial Overview  

Table 36    Lodha Group Company Overview  

Table 37    Lodha Group Financial Overview  

Table 38    TATA Housing Company Overview  

Table 39    TATA Housing Financial Overview  

Table 40    L&T Realty Ltd Company Overview  

Table 41    L&T Realty Ltd Financial Overview  

Table 42    Oberoi Realty Ltd Company Overview  

Table 43    Oberoi Realty Ltd Financial Overview  

Table 44    Brigade Group Company Overview  

Table 45    Brigade Group Financial Overview