The housing prices in MMR, considered the costliest real estate market, saw a 3% increase in monthly rentals on a Y-o-Y basis in average housing rentals of the key localities. Micro-markets like Balkum, Andheri West, Ghansoli, Borivali West and Bandra East have seen the highest monthly rent rise as compared to CY 2018.
Commercial rentals also saw an increase in rentals in 87% of the key localities in Mumbai, with maximum monthly rents in BKC Core and Nariman Point being ? 277 per square feet and ? 245 per square feet, respectively.
Boman Irani, President, CREDAI-MCHI, said, “The real estate industry is currently going through a momentous cycle, and the increase in housing rentals give a ray of optimism to both developers and homebuyers since this will encourage more housing sales in the upcoming months. Rentals have been witnessing an upward trend in major Indian cities as companies have now switched to hybrid working, and schools/colleges have reopened as well. Average Rentals for 2BHK units of grade A housing projects in Malabar Hill in CY 2022 (YTD) is ?2,15,000.
Overturning a dull scenario created by the effects of the pandemic, via growth in job opportunities, increase in housing sales, and higher demand for larger spaces are some of the factors which are adding to this trend. Homebuyers are now more likely to invest in such properties, given that the ROI would be higher than earlier despite the inflationary conditions.
While the residential sector has witnessed immense growth compared to CY 2018, 74% of all the micro-markets in Thane have dominated the region as it observed a double-digit percentage growth in housing rentals. The commercial business has shown signs of improvement as rentals increased in 88% of the Mumbai office market.”
