Synopsis: Indian tenants across the top six metros currently have over ₹1.3 lakh crore locked away as security deposits, money sitting idle instead of being invested or spent. New data from NoBroker’s Rent Report 2026 shows this upfront cost, not the monthly rent, has become the single biggest barrier to renting a home.
Across the country’s 6 largest rental markets, tenants currently have ₹1,26,042 crore frozen with landlords as security deposits, which is a capital that could have been used for investments, stock markets, or everyday spending. This trapped sum is larger than the annual infrastructure budgets of several Indian states. All the data cited below are sourced from NoBroker’s Rent Report 2026, used to assess the scale and impact of India’s ‘deposit-freezing’ problem.
The Data: How Much Is it, City by City
Bangalore
75% of Bangalore tenants have reported that at some point, a high security deposit has stopped them from moving into a home they liked. And only 35% of tenants got their full deposit back without issue, while 40% saw deductions and 7% never recovered it at all. The pressure is sharpest in the city’s premium and IT-corridor hotspots, Indiranagar, Whitefield, Bannerghatta Road, and Bellandur, where rents and the deposits have increased the fastest.
Pune
62% of Pune tenants report the same high security deposit problem with, only 52% of tenants getting their last deposit back in full. This is concentrated in Pune’s tech-led corridors, Wakad, Viman Nagar, and the Nagar Road belt, where commercial density and tight premium inventory have kept deposit-linked friction alive.
Hyderabad
54% of Hyderabad tenants say a huge deposit has blocked them from a home they wanted, with ₹6,843 crore tied up citywide. Hyderabad’s tenants are also the most resistant to changing the system, 71% are unwilling to pay even a slightly higher rent in exchange for a lower deposit, reflecting a market that trusts the traditional upfront-payment model more than most. The friction clusters around the western IT belt, Gachibowli, Madhapur, Banjara Hills, and Borabanda, where rents, and therefore deposits, have risen fastest.
Chennai
48% of Chennai tenants report the deposit barrier, and only 44% got their full deposit back without issue, and 11% never recovered it at all. This poor track record makes tenants more hesitant to accept high deposits in the first place. The pressure is broad-based, spreading from the established core to the connectivity-driven OMR technology belt Perungudi, Thoraipakkam and the southern GST Road corridor, where rents have grown fastest and deposits have scaled up accordingly.
Mumbai – MMR
Mumbai holds the largest frozen deposit amount, at ₹41,156 crore, with 56% of tenants saying a steep deposit has stopped them from taking a home they liked, with only 68% reported that they have got their last deposit back in full. The size of this amount reflects Mumbai’s exceptionally high rents, concentrated in premium pockets like South Mumbai, Powai, and Andheri West, alongside the fast-growing peripheries of Thane and Navi Mumbai.
Delhi – NCR
In NCR just 34% of tenants reported that it has stopped them from taking a home, and deposits here average only around two months’ rent. This is the direct result of NCR being closer to the Model Tenancy Act’s 2-month benchmark already. The region’s ₹24,054 crore pool reflects the sheer size of its tenant base rather than steep per-home deposits, and 58% of tenants got their last deposit back in full. The friction remains in clusters in premium and high-demand pockets such as Gurgaon, Lajpat Nagar, and Dwarka.
Where the Deposit Freeze is More
- High-deposit, high-resistance cities: Bangalore and Pune, where a majority of tenants have actively walked away from a home over high deposit fees.
- High-value, lower-friction cities: MMR, where deposits are the largest in absolute terms but tenants are more accustomed to the practice and refund experiences are comparatively clean
- Low-friction cities: Delhi-NCR, where deposits average roughly two months’ rent and refund disputes are comparatively rare
- High risk of non refund cities: Chennai and Hyderabad, where deposit size is a real issue and a rougher exit experience compounds the problem
How Tenants Can Protect Themselves
- Check state adoption of the Model Tenancy Act. Under this the residential deposits are capped at 2 months’ rent and 6 months for commercial. Tamil Nadu, UP, Andhra Pradesh, Assam, Maharashtra, and Karnataka have moved toward MTA-aligned rules.
- Insist on a registered, written agreement. MTA-based rules require digital stamping and reporting to the local Rent Authority within 60 days, creating a legal record of the deposit.
- Know the refund timeline. Deposits must be returned on the day a tenant vacates, and for normal wear and tear like, peeling paint, worn hinges, can’t be deducted.
- Negotiate the deposit amount where there is no capped value. In such cases, deposit size is largely down to market practice, so tenants should agree on terms explicitly before signing.
- If wrongfully withheld, approach the Rent Authority or file a civil suit under the state Rent Control Act, as in some states, like Maharashtra, also require landlords to pay interest on deposits held over time.
All in all
Monthly rent is only part of the cost of moving, the upfront deposit and is proving to be the bigger obstacle for a workforce that moves more often than ever. As states gradually align with the Model Tenancy Act’s 2 month cap, the ₹1.3 lakh crore currently sitting idle could start flowing back into tenants’ hands, but until adoption is uniform, the deposit will likely remain the real price of renting in India.
