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Gurugram Rents Dip Despite Demand Surge
18 Feb
Summary
- Rental demand in Gurugram increased significantly year-on-year.
- A mismatch exists between available larger apartments and renter demand for smaller homes.
- Affordability pressures are causing rental values to decline despite strong leasing activity.
Gurugram's rental market experienced a notable price correction during the October-December 2025 quarter, even as tenant demand surged by 3.6% sequentially and 13.1% year-on-year. Supply saw a slight sequential dip of 0.6%, though it remained up 7.5% compared to the previous year.
The core issue lies in a structural imbalance: 75% of rental demand focused on one- and two-bedroom apartments, while 52% of available listings were for larger three-bedroom units. This inventory skew, coupled with affordability pressures, has led to softer headline rental values.
Nearly 44% of rental demand was concentrated in the ₹10,000-₹20,000 monthly range. Conversely, a significant 36% of listed properties were priced between ₹50,000 and ₹1 lakh, indicating a substantial overhang of premium inventory.
Industry experts attribute the current phase to a normalization after rapid rent increases in 2023 and 2024, driven by return-to-office mandates. As new supply has entered, landlords are moderating expectations to maintain occupancy, leading to longer lease times for higher-priced units.
Gurugram's appeal as a residential hub, fueled by corporate offices and infrastructure, underpins sustained demand. Future rental momentum will hinge on better alignment between the demand for compact and mid-segment housing and the available supply, suggesting a need for landlords to adjust inventory mix and pricing.
