Real Estate Trends in Indian Metropolitan Cities
Increase in Rental Values
Rising real estate rates have led to a significant decline in property sales across India. However, this trend has resulted in substantial growth in rental values, particularly in metropolitan cities such as Mumbai.
- Mumbai: The city and its outskirts have witnessed an 11% increase in rental values over the past year.
- Other Cities: Bangalore, Pune, and Delhi have also seen notable increases with figures rising by 13%, 11%, and 9% respectively.
Divergent Trends in South Mumbai
Unexpectedly, rental values in South Mumbai, one of the most sought-after areas, have seen a decline:
- Worli: A 21.31% drop.
- Prabhadevi: An 18% drop.
- Parel: A 12% drop.
- Bandra (West): An 11.57% drop.
Expert Insight: "The rent in South Mumbai had gone up drastically. It remains unaffordable, leading people to move towards the suburbs and outskirts of the city."
Rise in Suburban Rental Value
While South Mumbai saw a drop, suburban areas have experienced a significant rise in rental values:
- Borivli (West): 42.25% growth.
- Powai: 35.04% growth.
- Malad: 28.32% growth.
- Kandivli (East): 20.40% growth.
Additionally, the Mumbai Metropolitan Region has seen substantial growth:
- Mira Road: 39.28% increase.
- Seawoods: 36.36% increase.
Reasons Behind the Trend
The rise in rental values is attributed to several factors:
- Exorbitant Property Rates: High property prices in Mumbai lead people to prefer renting over buying.
- Increased Demand: A significant influx of people into the city has driven up the demand for rented homes.
A recent study supports this trend, stating, "People prefer to stay in rented homes instead of buying a house. Also, there is a huge arrival of people in the city. As a result, there is a huge demand for rented homes."
Government Data
- Lease Agreements: Government data compiled by the stamp duty department shows a 35% rise in the number of lease agreements being signed in the city.
