If you moved cities in India this year, one number probably surprised you: the rent. The gap between what you paid five years ago and what a similar flat costs in mid-2026 is no longer a gentle uptrend. It is a structural repricing, driven by return-to-office mandates, urban migration, luxury-heavy new supply, and the tightening framework of the Model Tenancy Act.
This is the Housewise India Rent Index 2026: a city-by-city look at what tenants actually pay for average residential rentals, security deposits, and legally compliant rent agreements across 22 major markets. The numbers below draw on publicly reported market data from Q1 to Q2 2026, layered with tenancy patterns Housewise observes across its property management operations. Use this as a negotiation baseline, not a fixed quote, since micro-market variation within any city is significant.
Executive Summary: What the 2026 Rent Market Actually Looks Like
Five findings define the year.
- National rental growth of roughly 14 percent year-on-year across major metros, though supply has finally started catching up.
- Rental supply grew 9 percent quarter-on-quarter in early 2026, while demand grew just 0.6 percent, softening negotiations in select cities.
- India’s average gross residential rental yield reached 5.16 percent in Q2 2026, with Delhi and Kolkata leading and Mumbai lagging.
- Roughly Rs. 1.26 lakh crore is locked as security deposits with landlords across the top six metros, with Mumbai and Bangalore accounting for the majority.
- The Model Tenancy Act deposit cap of two months’ rent is now in force in adopting states, though market practice in Bangalore, Chennai, and Mumbai continues to exceed it.
The 22-City Rent Snapshot: 2BHK Average Rent
The table below reflects mid-2026 asking rents for a standard 2BHK, semi-furnished unit in an established residential locality, drawing on public listings data and Housewise’s on-ground observations. Rents are quoted per month in Indian rupees.
| City | Tier | 2BHK Average Rent (Rs.) | YoY Change |
| Mumbai | Tier 1 | 55,000 to 90,000 | +12% to 18% |
| Delhi NCR | Tier 1 | 32,000 to 55,000 | +10% to 14% |
| Gurugram | Tier 1 | 35,000 to 65,000 | +8% to 12% |
| Bangalore | Tier 1 | 28,000 to 50,000 | +10% to 14% |
| Hyderabad | Tier 1 | 22,000 to 40,000 | +8% to 12% |
| Chennai | Tier 1 | 22,000 to 38,000 | +8% to 12% |
| Pune | Tier 1 | 22,000 to 40,000 | +9% to 13% |
| Kolkata | Tier 1 | 18,000 to 30,000 | +6% to 9% |
| Noida | Tier 1 | 20,000 to 35,000 | +10% to 14% |
| Greater Noida | Tier 2 | 15,000 to 25,000 | +7% to 10% |
| Ahmedabad | Tier 1 | 18,000 to 32,000 | +7% to 10% |
| Navi Mumbai | Tier 1 | 25,000 to 45,000 | +10% to 14% |
| Thane | Tier 1 | 25,000 to 45,000 | +10% to 14% |
| Palghar | Tier 2 | 12,000 to 20,000 | +6% to 9% |
| Jaipur | Tier 2 | 15,000 to 25,000 | +7% to 10% |
| Lucknow | Tier 2 | 14,000 to 22,000 | +6% to 9% |
| Chandigarh | Tier 2 | 18,000 to 30,000 | +7% to 10% |
| Kochi | Tier 2 | 16,000 to 28,000 | +7% to 10% |
| Indore | Tier 2 | 12,000 to 20,000 | +5% to 8% |
| Bhopal | Tier 2 | 12,000 to 18,000 | +5% to 8% |
| Coimbatore | Tier 2 | 14,000 to 22,000 | +6% to 9% |
| Vizag | Tier 2 | 13,000 to 22,000 | +6% to 9% |
Actual rent depends on furnishing, society amenities, walk-to-metro distance, and building age. Fully furnished units typically run 15 to 25 percent above the semi-furnished baseline.
The Security Deposit Story: Where India Locks Up Its Cash
The security deposit remains the largest cheque an Indian tenant writes each year. Local practice varies wildly, and the Model Tenancy Act’s two-month cap has still not fully filtered through to on-the-ground negotiations in every market.
| City / State | Typical Deposit (months of rent) | Notes |
| Bangalore | 6 to 10 months | Highest in India, the MTA cap now legally applies |
| Mumbai, Pune | 3 to 6 months | Registered Leave and Licence under Section 55 is mandatory |
| Chennai | 2 to 4 months | The Tamil Nadu Act statutorily caps residential deposits |
| Hyderabad | 2 to 4 months | Rising with GCC-driven demand |
| Delhi NCR, Gurugram, Noida | 2 to 3 months | Higher for premium furnished stock |
| Kolkata | 1 to 3 months | Traditionally landlord-friendly rent regime |
| Chandigarh, Jaipur, Lucknow | 2 to 3 months | Tier 2 practice is broadly aligned with MTA |
| Kochi, Vizag, Coimbatore | 2 to 3 months | Furnished stock trending higher |
| Palghar, Greater Noida | 2 to 4 months | Emerging-market pricing |
For the legal details on where the Model Tenancy Act now caps deposits at two months’ rent for residential and six months for commercial, see our Model Tenancy Act guide.
Rent Agreement Costs: What Legally Compliant Paperwork Runs
Registering a rent agreement is not the same across states. Stamp duty methodology, e-registration availability, and biometric processes vary significantly.
| City / State | Stamp Duty Formula | Registration Fee | Notes |
| Maharashtra (Mumbai, Pune, Thane, Navi Mumbai, Palghar) | 0.25% of (monthly rent x tenure) + 10% of refundable deposit | Rs. 1,000 municipal, Rs. 500 rural | Registration is mandatory regardless of duration |
| Karnataka (Bangalore) | 0.5% of annual rent + deposit | Rs. 100 to Rs. 500 | 11-month agreements common |
| Delhi NCR | 2% of annual rent | Rs. 100 to Rs. 1,100 | E-stamping available |
| Uttar Pradesh (Noida, Greater Noida, Lucknow) | 4% of annual rent | Approximately Rs. 100 | Rent Authority filing required in MTA rollout |
| Tamil Nadu (Chennai, Coimbatore) | 1% of annual rent | Rs. 100 | Digital registration expanding |
| Haryana (Gurugram) | Rs. 100 flat for 11 months | Rs. 100 | Above 11 months requires full stamp duty |
| Telangana (Hyderabad) | 0.5% of annual rent | Rs. 100 | E-stamping via SHCIL |
| Punjab, Chandigarh | Rs. 100 flat for 11 months | Nominal | Chandigarh MTA 2020 has not yet been notified |
| Kerala (Kochi) | Rs. 200 to Rs. 500 flat for 11 months | Nominal | Fair Value benchmark for longer leases |
| Gujarat (Ahmedabad) | 1% of annual rent | Rs. 100 | Standard e-stamping |
| West Bengal (Kolkata) | 0.5% of annual rent | Rs. 100 to Rs. 200 | Traditional bhogdakhal system in select localities |
For the Maharashtra-specific process, including the exact biometric and portal steps, see our Maharashtra rent agreement guide and the step-by-step online registration walkthrough.
Rental Yields: What Investors Should Watch
India’s average gross rental yield reached 5.16 percent in Q2 2026, marginally up from 5.09 percent in Q4 2025. The city-level picture:
- Delhi and Kolkata lead at approximately 5.8 percent, driven by relatively lower entry prices against strong tenant demand.
- Bangalore and Hyderabad track 4.5 to 5.5 percent, buoyed by GCC and IT-corridor absorption.
- Chennai and Pune cluster around 5 percent, with newer stock in outer corridors slightly higher.
- Mumbai trails at 3 to 3.5 percent gross yield, given very high entry prices, though absolute rents remain the highest in India.
Net yields (after property tax, society maintenance, vacancy, and management fees) typically run 1.5 to 2 percentage points below gross. This is where professional property management materially affects the number. A property that stays vacant for two months of the year gives up 16 percent of its annual rent, which alone can wipe out most of the yield differential.
Key Trends Shaping India’s Rental Market in 2026
- The supply-demand gap is closing. New residential inventory delivered in early 2026 outpaced fresh demand, softening rental growth in Gurugram, Sarjapur Road (Bangalore), and Kharadi (Pune).
- The Model Tenancy Act is reshaping compliance. Uttar Pradesh, Tamil Nadu, Andhra Pradesh, and Assam have begun operationalising Rent Authorities. Registration within 60 days is now a genuine compliance ask.
- NRI landlords are professionalising. Remote management, e-agreements, and legally compliant tenancies are replacing family-managed vacancies.
- Deposit disputes are rising. With deposits worth Rs. 1.26 lakh crore locked across metros, formalised deposit refund clauses in registered agreements are becoming mandatory tenant asks.
- Micro-markets matter more than city averages. Within Bangalore, the gap between HSR Layout and Yelahanka is now larger than the gap between Bangalore and Hyderabad.
Methodology and Data Sources
This Rent Index synthesises publicly reported data from Q1 to Q2 2026, drawing on RBI’s All-India House Price Index, Global Property Guide’s yield tracker, NoBroker’s deposit study, and reported market rates from active property platforms. Housewise’s own transaction and tenancy observations, drawn from operations across 22 cities, provide the on-ground reality check for each number.
Ranges reflect typical, not extreme, values. Premium micro-markets (South Mumbai, Koramangala, Bangalore, Cyber City Gurugram, Jubilee Hills Hyderabad) run above the upper end. Emerging suburban corridors typically sit below the lower end.
How Housewise Fits Into the 2026 Rental Landscape
For a rental market this fragmented, professionally managed tenancies are no longer a luxury. They are the difference between a compounding asset and a vacant flat that costs money to hold. Housewise manages residential rentals end-to-end across 22+ Indian cities, covering tenant sourcing, registered rent agreements, rent collection, maintenance, and legal compliance.
For NRI landlords, our NRI property management service is used by owners in Bangalore, Chennai, Gurugram, and Noida to run their Indian rental as a genuine asset from abroad.
If your property sits in the yield bands above but is not currently earning them, the gap is usually operational, not structural. Talk to us about closing it.
The Bottom Line for 2026
India’s rental market in 2026 is not the same market it was in 2019. Rents are structurally higher, deposits are structurally larger, compliance is genuinely tightening, and micro-market variation is now bigger than city-level variation. For tenants, this Index is a negotiation floor. For landlords, it is a valuation benchmark. For NRI owners, it is a reminder that unmanaged Indian property no longer builds wealth on its own.
To turn your property into a compliant, tenanted, and professionally managed rental in any of the 22 cities above. The 2027 Index will reflect what you did with your flat this year.
Frequently Asked Questions
What is the average rent in India in 2026?
Average 2BHK rent in India in 2026 ranges from Rs. 12,000 in tier 2 cities like Indore to Rs. 90,000 in premium Mumbai localities. The national average sits between Rs. 22,000 and Rs. 35,000 for semi-furnished stock in mid-tier metro localities.
Which is the most expensive city to rent in India in 2026?
Mumbai remains India’s most expensive rental market in 2026, with 2BHK rents in central localities routinely exceeding Rs. 60,000 per month. Delhi NCR, particularly Gurugram, follows closely due to premium 3BHK-heavy inventory in Cyber City and Golf Course Road.
How much has rent increased in India in 2026?
National rental growth is approximately 14 percent year-on-year in 2026 across major metros. Growth is concentrated in GCC corridors (HSR Layout Bangalore, Hitec City Hyderabad, Kharadi Pune), while some Gurugram sectors are showing signs of softening from new supply
What is the standard security deposit in India in 2026?
Standard deposits range from 1 month in Kolkata to 10 months in Bangalore. Under the Model Tenancy Act adopted in several states, residential deposits are legally capped at 2 months’ rent, though market practice in Bangalore, Mumbai, and Chennai continues to exceed this.
How much does it cost to register a rent agreement in India?
Rent agreement registration costs range from Rs. 100 flat in Chandigarh and Gurugram for 11-month agreements to over Rs. 3,000 in Maharashtra, where 0.25 percent stamp duty on the total rent plus 10 percent of the deposit applies to every leave and licence.
Which city offers the best rental yield in India in 2026?
Delhi and Kolkata lead India’s rental yield rankings at approximately 5.8 percent gross in 2026, driven by relatively lower entry prices. Bangalore and Hyderabad follow at 4.5 to 5.5 percent, while Mumbai trails at around 3 to 3.5 percent due to high property prices.
Is the Model Tenancy Act deposit cap actually enforced in 2026?
Enforcement varies by state. Uttar Pradesh, Tamil Nadu, Andhra Pradesh, and Assam have operationalised the framework. In Maharashtra, the state Rent Control Act already governs deposits. Bangalore and Chennai landlords continue to demand higher deposits, though tenants can legally challenge this.
What is a typical 2BHK rent in Bangalore in 2026?
A semi-furnished 2BHK in Bangalore in 2026 ranges from Rs. 15,000 in Yelahanka or Electronic City to over Rs. 55,000 in Koramangala, Indiranagar, and HSR Layout. Fully furnished units in GCC corridors easily exceed Rs. 60,000 per month.
Why are rents rising faster than income in Indian cities in 2026?
Rents are rising faster than income due to concentrated urban migration, return-to-office mandates in GCCs, luxury-heavy new supply, and infrastructure-linked demand around metro corridors. Home prices are rising even faster, pushing more households into extended rental tenure.
How does Housewise verify its rental data?
Housewise’s Rent Index combines publicly reported market data with proprietary observations from tenancies managed across 22+ Indian cities. Every figure reflects semi-furnished residential stock in established localities and is cross-verified against active property listings before publication.
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