As the financial and commercial hub, Mumbai witnesses significant migration from other states. And most of the incoming population looks to rent houses.
In 2018-2019, the city recorded the highest increase in rentals followed by Chennai and Bangalore, finds a report. According to a property portal, Mumbai has a much higher share of rental properties in the premium (Rs 35,000-50,000 per month) and luxury ( >Rs 50,000 per month) bracket, than the national average. It also appears that most tenants prefer living close to their workplace.
"Incidentally, Mumbai also has the highest share of furnished properties on rent and is in demand for co-living solutions (CLS) and PG. High rental values in Mumbai have resulted in bachelors opting for PG accommodations or CLS. This also allows them to afford accommodation relatively closer to their work location," said Sudhir Pai, CEO, MagicBricks.
According to a report by NoBroker on rental trends, the sensibilities of Mumbai residents seems to be changing recently, with convenient commute featuring as a prominent factor in renting decisions made by Mumbaikars.
"As per the report, 53% of tenants in Mumbai chose a home to rent based on its distance to their workplace, while 48% made the decision based on the ease of transportation to other parts of the city. A significant majority (58%) also highlighted the neighbourhood's safety quotient as an important factor while choosing a property," said Saurabh Garg, co-founder of NoBroker.
Tenants across Mumbai also gave due consideration to access to amenities while making their rental decisions. Around 85% looked for regular water supply at their new homes, while 76% wanted their homes to be secure.
The regions that witness the maximum demand in Mumbai include Kharghar, Mira Road, Thane West, Majiwada, Kalyan West, Kandivali East and West, Ghodbunder Road, and Kharegaon. Other localities that see high rental activity include Mira Bhayandar, Badlapur West, Virar, Seawoods, Titwala East, Nalasopara, Borivali, Malad East, Nerul, and others. "Their popularity is driven by affordability, as prospective tenants can rent a 2BHK unit at an average monthly rent in the range of Rs 17,000 - 25,000," said Garg.
Rents of different properties differ from locality to locality: Dadar East (between Rs 40,000 and Rs 1.5 lakh), Matunga, (between Rs 70,000 and Rs 3.5 lakh), Dadar West, Lower Parel (between Rs 50,000 and Rs 4.75 lakh) and Bandra East, Khar, Santacruz (between Rs 35,000 and Rs 2.5 lakh). "The configuration may vary based on the actual location and size of the property," said Garg.
