By Sanjay Murari Chaturvedi, Editor
Rentals are increasing 10-15% YoY basis in major metros in India. Specifically housing segment have seen a huge leap in the residential rental markets in Mumbai, Pune, Delhi, Kolkata and Hyderabad. Main reason behind is enhanced affordability of tenants who are getting advance rents from society redevelopment and plus they add their own funds to go for a better accommodation for a short period so that they get their new permanent accommodation after redevelopment. Besides this corporates are giving good incentives to relocate for a short period.
Third main important point is brokers active in renatl markets are giving higher expectations to owners to secure their business as owners expectations enhances and the asking offers are always beyond prevailing markets.
Redevelopment market and rentals residential markets are set to explode its bubble by early 2025 if not later. Research show that the rental markets are at its historically high priced and people dependent on renatl accommodation in mejor metros are feeling the burn. With good infrasture and metro work completed by end of 2024, most of the urban agglomorations are are all set to give good community from out of the city to the city centres. With this, the residential accommodation demand shall shift from CBD areas to budget housing segments where lakhs of flats are kept vacant for want of demand and investors are desparately waiting for occupiers in rental segments.
Majority of the corporate headquarters/ back offices have shifted to outskirts or extended suburbs of Mumbai and other metropolitan cities hence the employees have also shifted to these connecting areas leaving the high rental accommodations in city centre empty. No takers for large flats seen in recent times is sign where the rental market is all set to collapse by end of 2024.