Rents surge 25 per cent in prime Indian cities in 2025, led by Mumbai, Bengaluru

Property rents in major Indian cities, namely Mumbai, Delhi, Bengaluru, Noida and Gurugram shot up by 25 per cent in 2025. This surge came from rising property prices, companies asking workers to return to offices, wealthy newcomers moving in, and strong business rentals. Many workers had to move far from their offices to find affordable homes.The trend is likely to continue in 2026. "We expect rentals to remain on an upward trajectory, with more growth towards established corridors, while affordability pressures may push incremental demand towards peripheral locations," said Shveta Jain, MD, residential services at Savills India, as quoted by ET.Mumbai saw rent increases of 1-20 per cent in its prime areas. People wanted bigger homes with better facilities. Many old buildings being torn down and rebuilt also pushed up rents.In Gurugram, fancy homes saw rent hikes of 8-25 per cent. Areas like Dwarka Expressway and Golf Course Road led the pack with 25 per cent and 20 per cent jumps."Top executives prefer to stay near the office, and that is the reason why luxury rentals continue to go up, as these complexes are located near office hubs. Mid-segment employees have to move to peripheral areas to save on rent, though there, too, there has been a substantial increase in rentals," said Shauzab Kazmi from Moneytree Realty.Homes near metro stations became much pricier to rent. Bengaluru's rents jumped 18-20 per cent due to company workers and foreigners moving in. Noida's expressway area saw rents climb 19 per cent from 2024, though new luxury home launches dropped 17 per cent.Delhi's unique situation was highlighted by Pradeep Prajapati from Wealthvisory Capital, who said, "While most of the real estate development is now focused in Noida and Gurugram, Delhi often beats them in rentals because of lack of availability." Delhi saw rents rise by 19% overall, with South-East and South-Central areas seeing the biggest increases.