Mumbai Real Estate Market: Why 2 BHK Rentals Are in High Demand

Introduction

The housing market rental situation in Mumbai, India, is complex and affects millions of people. Mumbai is the financial capital of India and is home to over 20 million people. The city has a complex housing market influenced by many factors, including historical trends, government policies, urban development plans, and affordability issues.

Table of Contents

• Monthly Rent: Rs. 10,000 to Rs. 50,000 up to
• Can’t Buy a House in This City
• Weak Rental Demand in Q3 FY24
• Rental Registration in Mumbai

Mumbaikars prefer to rent 2 BHK units, as 42 percent of the total rental demand in the residential segment of the Mumbai real estate market comes from 2 BHK units. This article analyzes the housing market in Mumbai, outlining the key players.

1 BHK units have the second highest demand, with a share of 31 percent of the total demand. Then, according to the data, 3 BHK units account for 23 percent, and large houses (above 3 BHK) account for only seven percent of the demand.

Monthly Rent: Rs. 10,000 to Rs. 50,000 up to

At the end of the budget, the monthly rent was Rs. 10,000 to Rs. 50,000, which is very much in demand. About 45 percent of this demand is then Rs. 50,000 to 1 lakh. This is a significant 39.1 percent of the total. Demand share and above mentioned Rs. 1 lakh as 15 percent per month rent.

According to the October to December 2023 Rental Index, the South Mumbai rental markets tend towards ultra-luxury, while the Central and North markets cater to a premium clientele. It forms a unique geographical segment in Mumbai’s rental market.

In the most preferred areas, the average monthly rent for a 2 BHK apartment is approx. Rs. 60,500, while the corresponding number of 3 BHKs will increase by approx. 87,417 per month. The above data is derived based on the preferences of 2 crore customers.

Can’t Buy a House in This City

“Mumbai is an expensive city, and many people cannot afford a house in the city. So they chose to rent. Young Indians prefer to rent. It gives them flexibility to change jobs in cities,” said Abhishek Kiran Gupta, a local.

He said, “Apart from this, residential rental demand is increasing in Mumbai as older societies are being redeveloped. All these residents have shifted to temporary rental housing. Which has increased the rental demand. Also, Mumbai’s office centers are concentrated here.

Some zones like Andheri, Bandra, and Lower Parel have many “senior employees who prefer to live near their workplaces, so rental demand for homes close to these office centers is high.” On why people like 2 BHK so much, Gupta says, “2 BHK is the best seller in India, not just in Mumbai. It’s for rent, and the two main reasons are that 2 BHK is affordable and 2 BHK is family-friendly. Four, it’s common.”

Weak Rental Demand in Q3 FY24

Quarter-on-quarter (QoQ) rental demand fell by nearly 17 percent in the October–December 2023 quarter, while year-on-year (YoY) demand in the Mumbai rental market rose marginally by 1 percent. On the supply side, it was down 0.7 percent QoQ and 12 percent YY. Rents, on the other hand, increased by 0.1 percent QoQ and 16 percent YY.

Rental Registration in Mumbai

Within the Mumbai city limits, around 25,000 tenancy agreements, also known as leave and license agreements, are issued on a monthly basis. Are registered with the Maharashtra government. For example, in January of this year, 26,379 rental agreements were registered. 27,494 in December 2023 and 25,211 in November.

Conclusion

The housing market rents in Mumbai, India are increasing day by day. This may be due to unstable jobs. One of the reasons is that Udoga has to live in Mumbai. Apart from these, the demand for housing in Mumbai is increasing due to many other reasons. For more information, visit our Openplot.

Also read: Sunteck to Launch New Projects in Modern Areas of Mumbai