News: NoBroker: Rs 31,628 Crore of Bengaluru Rent Deposits Locked-18-07-2026
Tenants in India’s six largest metropolitan regions have an estimated Rs 1.26 lakh crore locked with landlords as security deposits, according to the NoBroker Rent Report 2026. The money earns no return, reduces household liquidity and often turns into a dispute when tenants move out.
The Mumbai Metropolitan Region (MMR) leads with nearly Rs 41,156 crore, followed by Bengaluru at an estimated Rs 31,628 crore. The two markets together hold more than half the total. The report attributes MMR’s position to high rental values and Bengaluru’s to its long-standing practice of steep upfront deposits. The total exceeds the annual infrastructure budgets of several states.
Because deposits are usually a multiple of monthly rent, the sharp rise in rents in recent years has pushed up the upfront sum proportionately, the report showed. In Bengaluru, 75% of tenants said a high deposit had stopped them from renting a home they liked at least once, among the highest shares in major cities.
Refunds are a problem too
Only 35% of Bengaluru tenants got their last deposit back in full without trouble. Another 40% reported deductions, 18% faced significant disputes and 7% said they never got the money back. On social media platforms such as Reddit, X and LinkedIn, renters commonly complain of deductions for repainting, routine wear and tear, deep cleaning or minor repairs, and of refunds delayed for months.
About three-fourths of Bengaluru tenants said they would accept a 5-10% higher monthly rent in exchange for a substantially lower deposit.
Delhi-NCR fares better: around 58% of tenants received the full deposit at the end of the lease, about 30% reported deductions and 12% faced significant disputes.
Rent as a share of income
Rent is the largest monthly expense for most urban tenants, and nearly half spend more than 30% of income on housing, the report found.
Mumbai is the most stretched. There, 25% of tenants spend more than half their monthly income on rent and another 15% spend 41-50%, meaning roughly four in ten put more than 40% of earnings towards rent. In Delhi-NCR, 19% spend more than half their income on rent and around 25% spend over 40%.
Bengaluru, despite its reputation as a costly rental market, shows a healthier profile. Nearly 46% of tenants keep housing costs within 20-30% of income, and only 13% spend more than 40%.
The findings suggest that monthly rents in Bengaluru are manageable for many professionals, while unusually high deposits remain the city’s main pain point.
