What is the average security deposit in Indian cities?

A security deposit is an upfront refundable amount paid by the tenant to the landlord at the time of occupancy, held as financial protection against unpaid rent, damage, or breach of agreement terms. The amount varies significantly across Indian cities.

City-Wise Security Deposit Norms

• Mumbai: 2 to 3 months' rent (but can go up to 6 months for premium properties).
• Bangalore: 6 to 10 months' rent — among the highest in India.
• Delhi/NCR: 2 to 3 months' rent.
• Hyderabad: 6 to 10 months' rent (similar to Bangalore).
• Chennai: 6 to 12 months' rent — historically very high.
• Pune: 2 to 3 months' rent.

Model Tenancy Act Recommendation

The Model Tenancy Act 2021 recommends capping security deposits at 2 months' rent for residential properties and 6 months' rent for commercial properties a significant reform for high-deposit cities like Bangalore, Chennai, and Hyderabad.

Security deposit norms in India are largely market-driven rather than legally capped in most states. Tenants should negotiate deposit amounts and always ensure refund timelines, interest (if any), and deduction conditions are documented in the rental agreement before paying.