Why are Gurugram rents declining despite increased demand?

Gurugram rents are declining due to a mismatch between high tenant demand for smaller, budget-friendly apartments and a supply skewed towards larger, premium units, alongside affordability pressures.

What is the primary demand segment in Gurugram's rental market?

One- and two-bedroom apartments account for 75% of total rental demand in Gurugram.

How is Gurugram's rental market expected to evolve?

Future rental momentum in Gurugram will depend on better alignment between demand for compact and mid-segment housing and the available supply, potentially requiring adjustments in inventory and pricing.

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Gurugram Rents Dip Despite Demand Surge

18 Feb

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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.