Indian Real Estate

The Rise of Rental Housing in India


21, January 2026

Many recent developments in the real estate industry have risen the rental market and is expected to go higher in the future. Industry expert shares insight.

While home loans increasing interest rates, have led to increased rental housing across India.

Massive layoffs with many contemplating immediate purchasing of properties on loan without a substantial income source, hold them back from property buying.

"Back to Office" many organizations' strategies have resulted in workers moving into city centers, increasing property prices, which are way out of buyer's budgets, and many buyers pause their property buying processes.

These factors snub people's decisions to purchase property, rather than choose momentarily to settle on a rented house. Booming rental housing demands.

While companies demanding employees work back from offices and risen the demand for rental houses has significantly increased from 20% to 25% in 2022 against the pandemic.

GRC Shreekrish - Homes247.in

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Property owners were drastically hit by the pandemic national lockdowns. Many people opted to evacuate houses immediately, and none opted to occupy them, these houses were left vacant. The rents from these vacant properties were cut off, which interrupted a huge chunk of their family's income.

Online property buying has become an effective and alternative way for property purchasing processes. The VR technologies working their way into the industry have given rise to numerous opportunities to shadow the real world. Buyers today can experience properties from anywhere anytime and cushioned with all the comforts of their homes, completely locked in their houses.

However, the potential home buyer numbers have dropped drastically. Increasing interest rates, and skyrocketing property prices are major causes for it. Many opt for the better alternative of renting houses

Conclusion:

The next best option to buy a house is to rent a house. If you can't afford to buy a house, you obviously rent a house. Protection of your family from harsh weather and live a happy life with all the comforts and luxuries you and your family desire.

Increasing interest rates on mortgages and increasing property rates can restrain even potential buyers from purchasing a property. Instead, Rent a house.

Many workers relocating to Indian cities, from its neighborhood, and across the world, creating a real estate boom in India.

Renting a house can be more flexible as compared to buying one, especially for ones who are constantly transferred from one location to another. Disposing of own property can sometimes yield lesser rates. Every time you relocate you will have to hunt for a house that fits your budget and your taste.

In the case of a rented house, you choose from various available houses for rent and select that best fits your family's needs and enjoy all the luxuries of a new house, without having to buy one.

FAQs

Q. Why are housing rents in the cities so high?

A. Increased urbanisation, and increasing population due to Workers relocating to tire-2 and tire-3 cities, conversely, increasing housing property demands with limited supply are the key factors in rental demands and have led to skyrocketing rents.

Q. Why rental housing rates are high in Bangalore?

A. Bangalore is the silicon city of India, and is famous across the globe, many people across the globe relocating to Bangalore are rising in numbers. Conversely, increasing the city's population, creates high demands for rental properties, Obviously, high demanding rental properties carry their own high rental tags in Bangalore.

Q. What is the notice period for rental properties in Bangalore?

A. As per the rental agreement act, 60 days is set for agreement termination and the tenant to vacate the house. As a custom, the tenant must pay rent even during the notice period, however the clause doesn't mention information about rent during the notice period.

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