Report Description

Forecast Period


Market Size (2023)

USD 20.31 Billion

Market Size (2029)

USD 26.78 Billion

CAGR (2024-2029)


Fastest Growing Segment

Fully Furnished

Largest Market

South India

Market Overview

India Rental Housing market was valued at USD 20.31 Billion in 2024 and is anticipated to project robust growth in the forecast period with a CAGR of 4.56% through 2030. The rental housing market in India faces significant challenges despite its growth. Issues include a lack of standardized rental agreements, inconsistent property management services, ambiguous tenancy laws that complicate disputes and eviction processes, and a persistent shortage of rental housing supply in major urban centers. High property prices relative to income levels also impact affordability for renters. These challenges hinder market efficiency and tenant satisfaction, requiring improved regulatory frameworks, increased investment in rental housing infrastructure, and enhanced property management practices to foster a more stable and accessible rental market across the country.

Key Market Drivers

The rental housing market in India is driven by a complex interplay of socio-economic factors, demographic trends, government policies, and urban development dynamics. One of the primary drivers is rapid urbanization, as people flock to cities in search of better job opportunities, education, and lifestyle options. This urban influx increases demand for rental housing, particularly in metropolitan areas where economic activities are concentrated.

Millennials form a significant demographic influencing the rental market. This generation often prioritizes flexibility over homeownership, preferring to rent due to career mobility, financial constraints, and evolving lifestyle preferences. Their inclination towards renting shapes market demand, prompting developers and investors to focus on rental-friendly housing solutions such as co-living spaces and serviced apartments.

High property prices relative to income levels make buying homes unaffordable for many in urban areas, further driving rental demand. Renting becomes a pragmatic choice, allowing individuals and families to live in desirable locations without the financial commitment and long-term liabilities associated with ownership. This affordability gap between buying and renting is likely to persist, sustaining the rental market's growth.

Government policies play a crucial role in shaping the rental housing landscape. Initiatives aimed at promoting affordable housing, urban renewal projects, and regulatory frameworks impacting property ownership and tenancy laws significantly influence market dynamics. For instance, policies encouraging Real Estate Investment Trusts (REITs) have spurred investment in rental properties, enhancing market liquidity and investor confidence.

Infrastructure development is another key driver. Improved connectivity, urban amenities, and quality of life enhancements in cities make them more attractive for renters. Proximity to employment hubs, educational institutions, healthcare facilities, and recreational options enhances the desirability of rental properties in specific neighborhoods.

Cultural shifts also impact the rental market. Traditional norms favoring homeownership are gradually evolving, especially among younger generations who prioritize mobility and lifestyle over property ownership. This cultural shift, coupled with changing family structures and increasing nuclear families, supports the demand for rental housing tailored to diverse demographic preferences and household compositions.

Income levels and economic stability influence affordability and willingness to rent. Rising disposable incomes among middle-income groups expand the tenant pool, driving demand for better-quality rental accommodations and amenities. Economic stability and job growth in sectors like IT, services, and manufacturing contribute to sustained rental demand in urban centers where these industries thrive.

Despite these drivers, the rental housing market in India faces several challenges. These include a lack of standardized rental agreements, inconsistent property management services, and unclear tenancy laws that complicate dispute resolution and eviction processes. Insufficient rental housing supply relative to demand, especially in major cities, exacerbates affordability issues and rental price escalations. These challenges underscore the need for improved regulatory frameworks, enhanced property management practices, and increased investment in rental housing infrastructure to foster a more stable and accessible rental market across the country.

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Key Market Challenges

The India rental housing market, despite its growth potential, grapples with several significant challenges that hinder its efficiency and accessibility for tenants and investors alike. One of the foremost challenges is the lack of standardized rental agreements and regulatory clarity. Tenancy laws vary across states, leading to ambiguity and disputes between landlords and tenants. This inconsistency complicates rental transactions, lease renewals, and dispute resolutions, creating uncertainty and legal complexities that deter both domestic and international investors.

Another critical challenge is the inadequate supply of rental housing, particularly in major urban centers. Rapid urbanization and population growth have outpaced the development of rental properties, leading to a persistent demand-supply gap. This shortage drives up rental prices, making housing affordability a pressing issue for many urban dwellers. Developers often prioritize high-end residential projects over affordable rental housing due to higher profit margins, exacerbating the affordability crisis in cities where housing costs are already inflated.

Property management services in India also face challenges, including inconsistent quality and professionalism. Many rental properties lack professional management, leading to maintenance issues, delayed repairs, and tenant dissatisfaction. The absence of reliable property management services impacts tenant retention rates and diminishes the overall rental experience, discouraging long-term investments in rental properties.

Eviction processes and tenant rights pose significant challenges for landlords, particularly in cases of non-payment or misuse of property. Lengthy and cumbersome eviction procedures often favor tenants, creating reluctance among landlords to rent out their properties or invest in the rental market. Unclear legal frameworks and lengthy court proceedings further complicate eviction cases, resulting in financial losses and legal uncertainties for property owners.

Affordability remains a critical barrier in the rental housing market. High property prices relative to income levels in urban areas make renting an expensive option for many middle and lower-income households. Affordability constraints force tenants to compromise on living conditions or location preferences, affecting their overall quality of life and financial stability.

Infrastructure deficiencies in many urban areas also challenge the rental housing market. Inadequate urban amenities, transportation networks, and basic infrastructure services impact the livability of rental properties and reduce their attractiveness to potential tenants. The lack of proper infrastructure development hampers the growth potential of rental housing markets in emerging urban clusters, limiting their appeal for both tenants and investors.

Furthermore, cultural preferences and societal norms favoring homeownership over renting continue to shape market dynamics. Despite evolving attitudes, ingrained cultural biases towards property ownership as a symbol of financial security and social status persist among Indian households. This cultural mindset poses a challenge to the growth of the rental market, as it limits the acceptance of renting as a long-term housing solution among certain demographic segments.

The India rental housing market holds promise for growth and investment, it faces formidable challenges that require strategic interventions and policy reforms. Addressing regulatory inconsistencies, improving affordability through targeted housing policies, enhancing property management standards, and investing in urban infrastructure are essential steps to unlocking the market's full potential. Overcoming these challenges will not only foster a more sustainable and inclusive rental housing market but also contribute to India's broader economic development goals by providing affordable and quality housing options to its urban population.

Key Market Trends

The rental housing market in India is witnessing several key trends that are shaping its dynamics and future trajectory. One prominent trend is the increasing demand for rental housing driven by demographic shifts and changing lifestyle preferences. Millennials and Gen Z, comprising a significant portion of urban populations, exhibit a preference for renting due to factors such as mobility for job opportunities, financial flexibility, and a delay in traditional milestones like marriage and homeownership. This demographic shift towards renting has spurred the development of specialized rental housing solutions such as co-living spaces and serviced apartments, catering to the evolving needs of young urban professionals.

Affordability remains a critical concern influencing market trends. High property prices relative to income levels in major cities make homeownership inaccessible for many, prompting them to opt for renting as a more feasible housing option. As a result, there is a growing demand for affordable rental housing across urban centers, prompting developers and investors to focus on affordable housing projects and rental-friendly policies.

Technological advancements are revolutionizing the rental housing market in India. The adoption of digital platforms and real estate technology (proptech) solutions is streamlining rental transactions, property management, and tenant interactions. Online rental platforms facilitate property searches, virtual tours, lease agreements, and rent payments, enhancing transparency and convenience for both landlords and tenants. Proptech innovations such as IoT-enabled devices for smart homes and AI-powered property management tools are also gaining traction, offering efficiency improvements and cost savings in property operations.

Another notable trend is the emergence of institutional investment in the rental housing sector. Real Estate Investment Trusts (REITs) and institutional investors are increasingly allocating capital to income-generating rental properties. This trend not only provides liquidity to the market but also professionalizes property management practices, improves housing quality, and boosts investor confidence in the rental segment. Institutional investments are instrumental in expanding the supply of rental housing and addressing the affordability gap in urban centers.

Urbanization and infrastructure development continue to shape market trends. Rapid urban growth and the development of urban infrastructure such as metro rail networks, highways, and commercial hubs are influencing rental preferences and location choices. Proximity to employment centers, educational institutions, healthcare facilities, and recreational amenities drives demand for rental properties in well-connected and developed urban clusters.

Environmental sustainability and wellness considerations are increasingly influencing rental housing choices. Tenants, especially younger demographics, prioritize energy-efficient and eco-friendly properties that promote sustainable living practices. Developers are responding by incorporating green building standards, renewable energy solutions, and wellness amenities such as fitness centers, green spaces, and air quality management systems into rental housing projects.

Regulatory reforms and policy initiatives are pivotal in shaping market trends and investor sentiment. Government initiatives promoting affordable housing, regulatory clarity on tenancy laws, and incentives for rental housing development are encouraging participation from developers and investors in the rental market. Policy interventions aimed at boosting housing supply, enhancing rental affordability, and improving rental housing standards are expected to drive positive market dynamics and support sustainable growth in the rental housing sector.

The India rental housing market is evolving rapidly, driven by demographic shifts, technological advancements, institutional investments, urbanization, and policy reforms. Understanding these key trends is crucial for stakeholders seeking to capitalize on opportunities and navigate challenges in this dynamic and resilient segment of the real estate industry.

Segmental Insights

Type Insights

The Standalone Spaces segment dominates the India Rental Housing market, In the Indian rental housing market, the standalone spaces segment holds significant dominance, driven by diverse factors that cater to varied tenant preferences and market demands. Standalone spaces typically include independent houses, villas, and smaller residential units that are not part of larger apartment complexes or gated communities.

One key driver of the standalone spaces segment is the preference for privacy and autonomy among tenants. Many renters, including families and higher-income individuals, favor standalone properties for their exclusivity, larger living spaces, and the freedom to customize their living environment according to personal preferences. This segment appeals particularly to those seeking a detached living experience away from the density and shared amenities of apartment complexes.

Additionally, standalone spaces often offer unique features such as private gardens, parking facilities, and more flexible lease terms compared to standardized apartment rentals. These attributes attract a diverse tenant base, including expatriates, senior executives, and individuals with specific lifestyle requirements or preferences.

The market for standalone rental properties is also buoyed by urbanization and evolving demographic trends. As cities expand and suburban areas develop, standalone properties in well-connected neighborhoods become increasingly desirable. Proximity to employment hubs, educational institutions, and essential amenities further enhances the appeal of standalone rentals, driving demand across various demographic segments.

Moreover, the standalone segment benefits from a robust resale market, providing landlords with potential capital appreciation opportunities over time. Investors and developers capitalize on this demand by diversifying their portfolios with standalone rental properties, contributing to the segment's sustained growth and market resilience.

Despite its dominance, the standalone spaces segment faces challenges such as regulatory complexities, maintenance responsibilities, and scalability compared to apartment complexes. However, ongoing urbanization, demographic shifts, and evolving consumer preferences continue to bolster the standalone rental housing market's significance and attractiveness within India's dynamic real estate landscape.

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Regional Insights

South India emerged as the dominating region in 2024, South India has emerged as a dominant region in the Indian rental housing market, characterized by robust demand, diverse offerings, and favorable market dynamics. Cities like Bangalore, Chennai, Hyderabad, and Kochi are key contributors to the region's rental housing sector, driven by factors such as rapid urbanization, economic growth, and a burgeoning IT and services industry.

Bangalore, often referred to as India's Silicon Valley, leads the rental market in South India due to its status as a major technology and startup hub. The city attracts a large population of young professionals and expatriates seeking rental accommodations close to employment centers and vibrant urban amenities. This demographic diversity fuels demand for both traditional rental apartments and newer rental formats such as co-living spaces tailored to the preferences of tech-savvy millennials.

Chennai, a major cultural and industrial hub, also plays a significant role in the South Indian rental housing market. The city's thriving manufacturing sector, coupled with its reputation as a center for education and healthcare, attracts a steady influx of migrants and students in need of rental accommodations. Rental options range from affordable housing in suburban areas to upscale apartments in prime locations along the city's coastline.

Hyderabad has emerged as another prominent rental market in South India, driven by its robust IT and pharmaceutical industries. The city's proactive infrastructure development, including metro rail expansion and IT parks, has bolstered its appeal among tech professionals and investors alike. Rental demand is bolstered by a mix of local residents and a growing expatriate community, contributing to a diverse rental housing landscape that includes luxury apartments, gated communities, and affordable housing projects.

Kochi, known for its port activities and tourism industry, has also seen notable growth in its rental housing market. The city's strategic location in Kerala, coupled with infrastructure improvements such as the Kochi Metro, has enhanced its connectivity and livability. Rental properties cater to a mix of local residents, expatriates, and tourists seeking temporary accommodations, with options ranging from waterfront apartments to heritage homes in the city's historic quarters.

Overall, South India's dominance in the rental housing market is underpinned by economic vibrancy, demographic diversity, and supportive infrastructure development. While each city in the region presents unique opportunities and challenges, the collective growth trajectory underscores South India's pivotal role in shaping the future of India's rental housing sector amidst evolving urban dynamics and demographic trends.

Recent Developments

  • As of June 2024, Mumbai, India's largest and most expensive property market, has reached a significant milestone with its highest-ever property registrations for the month of June. The city recorded 11,538 property registrations, indicating a notable 12% increase compared to the previous year. This surge in property transactions has also translated into substantial revenue for the state exchequer, with stamp duty collections exceeding Rs 998 crore. This marks a robust 16% year-on-year growth in stamp duty revenue, underscoring Mumbai's resilience and continued attractiveness as a hub for real estate investment despite market fluctuations and economic uncertainties. The uptick in property registrations and revenue highlights confidence among buyers and investors in Mumbai's real estate sector, supported by factors such as infrastructure development, urban amenities, and strategic location advantages that enhance the city's appeal for residential and commercial property investments alike.

 Key Market Players

  • NestAway Technologies Pvt Ltd.
  • Zolostays Property Solutions Private Limited
  • Ziffy Homes India Pvt Ltd
  • Coliving, Inc.
  • Life Ltd
  • DTwelve Spaces Private Limited
  • Grexter Housing Solutions Private Limited
  • Housr Technologies Pvt. Ltd.
  • Stayabode Ventures Private Limited
  • SimplyGuest
  • By Type
  • By Size of Unit
  • By Property Type
  • By Region
  • Standalone Spaces
  • Society Based
  • Up to 400 square feet
  • 400-800 square feet
  • Above 800 square feet
  • Fully Furnished
  • Semi-Furnished
  • Unfurnished
  • North India
  • South India
  • West India
  • East India     

Report Scope:

In this report, the India Rental Housing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Rental Housing Market, By Type:
    • Standalone Spaces
    • Society Based  
  • India Rental Housing Market, By Size of Unit:
    • Up to 400 square feet
    • 400-800 square feet
    • Above 800 square feet  
  • India Rental Housing Market, By Product Type:
    • Fully Furnished
    • Semi-Furnished
    • Unfurnished
  • India Rental Housing Market, By Region:
    • South
    • West
    • North
    • East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Rental Housing Market.

Available Customizations:

India Rental Housing Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Rental Housing Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.     Markets Covered

1.2.2.     Years Considered for Study

1.2.3.     Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

4.    Voice of Customer

4.1.  Brand awareness

4.2.  Factors considered while selecting supplier

4.3.  Key satisfaction level

4.4.  Major challenges faced

5.    India Rental Housing Market Outlook

5.1.  Market Size & Forecast

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.     By Type (Standalone Spaces and Society Based)

5.2.2.     By Size of Unit (Up to 400 square feet, 400-800 square feet, above 800 square feet)

5.2.3.     By Property Type (Fully Furnished, Semi-Furnished, Unfurnished)

5.2.4.     By Region

5.3.  By Company (2024)

5.4.  Market Map

6.    North India Rental Housing Market Outlook

6.1.  Market Size & Forecast          

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Type

6.2.2.     By Size of Unit

6.2.3.     By Property Type

7.    South India Rental Housing Market Outlook

7.1.  Market Size & Forecast          

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Type

7.2.2.     By Size of Unit

7.2.3.     By Property Type

8.    West India Rental Housing Market Outlook

8.1.  Market Size & Forecast          

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Type

8.2.2.     By Size of Unit

8.2.3.     By Property Type

9.    East India Rental Housing Market Outlook

9.1.  Market Size & Forecast          

9.1.1.     By Value

9.2.  Market Share & Forecast

9.2.1.     By Type

9.2.2.     By Size of Unit

9.2.3.     By Property Type

10.  Market Dynamics

11.  Market Trends & Developments

12.  Competitive Landscape

12.1.              NestAway Technologies Pvt Ltd.

12.1.1.   Business Overview

12.1.2.   Product Offerings

12.1.3.   Recent Developments

12.1.4.   Financials (As Reported)

12.1.5.   Key Personnel

12.2.              Zolostays Property Solutions Private Limited

12.2.1.   Business Overview

12.2.2.   Product Offerings

12.2.3.   Recent Developments

12.2.4.   Financials (As Reported)

12.2.5.   Key Personnel

12.3.              Ziffy Homes India Pvt Ltd

12.3.1.   Business Overview

12.3.2.   Product Offerings

12.3.3.   Recent Developments

12.3.4.   Financials (As Reported)

12.3.5.   Key Personnel

12.4.              Coliving, Inc.

12.4.1.   Business Overview

12.4.2.   Product Offerings

12.4.3.   Recent Developments

12.4.4.   Financials (As Reported)

12.4.5.   Key Personnel

12.5.              Life Ltd

12.5.1.   Business Overview

12.5.2.   Product Offerings

12.5.3.   Recent Developments

12.5.4.   Financials (As Reported)

12.5.5.   Key Personnel

12.6.              DTwelve Spaces Private Limited

12.6.1.   Business Overview

12.6.2.   Product Offerings

12.6.3.   Recent Developments

12.6.4.   Financials (As Reported)

12.6.5.   Key Personnel

12.7.              Grexter Housing Solutions Private Limited

12.7.1.   Business Overview

12.7.2.   Product Offerings

12.7.3.   Recent Developments

12.7.4.   Financials (As Reported)

12.7.5.   Key Personnel

12.8.              Housr Technologies Pvt. Ltd.

12.8.1.   Business Overview

12.8.2.   Product Offerings

12.8.3.   Recent Developments

12.8.4.   Financials (As Reported)

12.8.5.   Key Personnel

12.9.              Stayabode Ventures Private Limited

12.9.1.   Business Overview

12.9.2.   Product Offerings

12.9.3.   Recent Developments

12.9.4.   Financials (As Reported)

12.9.5.   Key Personnel

12.10.            SimplyGuest

12.10.1.                Business Overview

12.10.2.                Product Offerings

12.10.3.                Recent Developments

12.10.4.                Financials (As Reported)

12.10.5.                Key Personnel

13.  Strategic Recommendations

14.  About Us & Disclaimer

Figures and Tables

Frequently asked questions


India Rental Housing market was valued at USD 20.31 Billion in 2024.


The India rental housing market is driven by urbanization, millennial preferences for flexibility, high property prices favoring renting over buying, government policies, and infrastructure development enhancing urban living attractiveness.


Major challenges for the India rental housing market include lack of standardized rental agreements, inadequate property management services, ambiguous tenancy laws, difficulty in eviction processes, and insufficient rental housing supply in urban centers.


South India region is expected to hold the largest share in the India Rental Housing Market due to growing and well-designed residential properties.


Srishti Verma

Business Consultant
Press Release

India Rental Housing Market is expected to grow at a CAGR of 4.56% Through 2030

Jul, 2024

Expanding gig economy and burgeoning millennial population are significant factors driving the growth of the India rental housing market during the forecast period of 2026-2030.