Resilient MMR rental market shows 1.1x growth post nCoV

Mumbai: Each micromarket in the Mumbai Metropolitan Region witnessed a healthy rise in housing rentals, with 65% witnessing more than a 1.1 times growth compared to pre-pandemic times, a survey by developer association CREDAI-MCHI and real-estate data analytics firm CRE Matrix has revealed. This comes despite the unprecedented crisis caused by the pandemic due to the workfrom-home culture, layoffs, and the economic downturn. The Mumbai Property Rental Tracker report said in Mumbai, rentals for five in the top micromarkets rose by more than 1.2 times as compared to calendar year 2018, while 64% of all micromarkets witnessed a doubledigit percentage growth in their rentals 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. Largely residential areas like Vikhroli witnessed a steep jump from Rs74 per sq. ft in 2018 to Rs110 per sq. ft in 2022, and Bhandup witnessed an increase from Rs64 to Rs93 per sq. ft, and Kurla saw a boost from Rs108 to Rs139 per sq. ft. Higher income group locality of Powai saw a jump from Rs106 to Rs131 per sq. ft.

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 home buyers 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.”