The real estate market has exploded in the post-pandemic era. The corporate market is increasing, increasing demand for commercial space and rental residences. According to industry statistics, in the second quarter of this year, Indian rental home searches climbed 84.4% year on year and 29.4% sequentially. Furthermore, total combined rental housing listings rose 3% quarter on quarter and 28.1% year on year throughout the 13 Indian cities covered.
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But, what are the variables that will lead to the rental housing demand boom?
- Accessibility and cost-effectiveness: When it comes to renting a property, people primarily examine three factors: infrastructure, connection, and price. The property’s location, with ready infrastructure and decent connection, takes precedence over the size and price of the unit. Customers want a home in a prominent location that allows them to maintain a good work-life balance, with less commuting time, easier access to the marketplace for shopping, and an interesting social infrastructure for a better way of life. Because Mumbai is also one of the most costly real estate markets in India, affordability is one of the most important considerations that clients consider when renting flats. When looking for rental properties, micro-markets become an excellent choice for the typical Mumbaikar.
- A thriving cosmopolitan population: Micro-markets also provide a perfect mix of individuals from various cultures and fields. Mumbai has already attracted a staggering number of academic institutions and multinational corporations in recent years. The film and television sectors, as well as the IT and fashion industries, as well as several financial organizations, are located here, resulting in high demand for rental apartments. Mumbai is one of India’s most active and interesting cities owing to its melting pot of culture and customs, from those who are led by beliefs and traditions to those who look up to western society and accept it as their way of life. Mumbai’s continual expansion of its outskirts has given rise to a slew of new micro-markets where individuals are actively trying to rent properties. The whole Mulund, Powai, and Chandivali belt has experienced a significant flood of residential constructions, resulting in constant growth in the demand for rental properties.
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- Projects with cutting-edge features: Developers have carefully investigated micro-markets to construct cutting-edge projects and even townships that provide some of the greatest facilities to inhabitants. With increasing digitization, house buyers have their list of tech-based features. They are increasingly opting for smart home technologies that offer greater comfort while enhancing their entire lifestyle. Customers place a high value on flats that provide completely equipped or semi-furnished residences plus many technological gadgets such as air conditioners, and televisions. These basic facilities are the best tool for landlords in attracting new renters.
Taking into account all of the aforementioned variables, rental housing in India is predicted to flourish in the next two years as a result of increasing urbanization, migration to cities, and rising house ownership prices. With new offices opening and people returning to the city, the demand for rental properties would rise steadily, particularly in major micro markets.
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