Being the financial capital of India, Mumbai has always witnessed a flourishing economy and because of this, the city realty market has always flourished. With the influx of a large number of people to the city every year for better career and education prospects, the rental real estate market of the city is also observing a huge jump from past many years. Many localities especially those which are nearby commercial hubs have been attracted by the tenant community to a large extent.
This can be very well understood from a recent survey, which revealed that the Mumbai Metropolitan Region (MMR) witnessed an 18% hike in rental values in 2018 followed by other cities like Chennai, Bangalore, Gurgaon, and Pune which saw a hike of 15%, 14%, 11% and 7% Year-o-Year basis.
Reasons behind increasing Rental Inflation
Due to increasing population, the demand for residential units has skyrocketed in recent times. This has led to a shortage of the supply of homes. This is a major reason behind increasing rental value as for 1 unit, there are 4 tenants.
Although the city limits have extended to regions like Thane and Panvel, rental activity is quite low in these places as compared to the places that lay within the city limits. Due to traveling time and connectivity to the workplace, tenants still prefer to rent a home in localities like Virar, Andheri (West), Goregaon (W), etc. This has given landlords another chance to keep rental values high.
Finally, owning a home in Mumbai is quite expensive to a working professional who has just started their career and particularly shifted with the family members. So, renting a home is quite affordable for them. This is another reason for increasing rent inflation.
Top Localities in Mumbai that witnessed major Rental Appreciation
Located in the west of Mumbai, Andheri (W) is one of the sprawling suburbs of the Mumbai City, well-connected to Versova and Ghatkopar by Mumbai Metro Line 1. The locality is also in proximity to various commercial hubs and IT companies, entertainment and shopping malls. It is also home to various hi-end luxury as well as mid-segment residential units. Andheri (W) has seen a 6% hike in rental value on a Y-o-Y basis. The current rent for a 1 BHK starts from Rs 35,000.
This locality of Thane is also emerging as the best rental location which has seen a huge jump in the rental price in the past few years with a 6% hike Y-o-Y basis. The Virar-Alibaug Multi-Modal Corridor is the main reason behind this popularity as it provides seamless connectivity to the other areas of Mumbai and MMR. The rent of a 1 BHK starts from Rs 9000.
One of the plush localities of Mumbai, Goregaon (W) is home to luxury apartments and villas. Surrounded by Sanjay Gandhi National Park and Conservation Education Centre, Goregaon (w) is home to ample green environs. The locality is well-connected by railway station, bus depot, Jogeshwari-Vikhroli Link Road and Western Express Highway. The rent of a 1 BHK starts from Rs 30000.
A thriving locality of Navi Mumbai, Seawoods has also witnessed a hike of 65 in rental values on a Y-o-Y basis. The area is known for the presence of famous Seawoods NRI complex developed by CIDCO, especially for the high-income segment. The area is home to well-developed social and civic infrastructures like schools, malls, and entertainment centers. Due to flourishing connectivity, the rent of a 1 BHK starts from Rs 17000.