Rental Prices Increase Throughout Many Neighbourhoods in Mumbai in 2022

The cost of monthly rentals is going up across the board in Mumbai's various localities. In spite of hurdles such as increasing interest and repo rates in the preceding quarter, the real estate market in MMR is booming, with both house sales and rentals on the upswing. This is due to the region's growing need for housing. According to the MMR Property Rentals Tracker 2022, which was produced by CREDAI-MCHI in cooperation with CRE Matrix, the home rental market in 13% of MMR micro-markets has registered a CAGR of 5% or more over the course of the preceding four years. The research also notes that home rental prices have increased across the board in the MMR, with 15% of the areas seeing a CAGR of 5% or more and the highest monthly rate rise occurring in Balkum (at approximately 30%). These findings are consistent with the hypothesis that the MMR housing market is becoming increasingly competitive.

In 13% of MMR's micromarkets, the price of renting a property went up by more than 5% over the course of a period of four years.

The MMR rental market has shown a surprising degree of resilience in the face of the extraordinary challenges brought on by the advent of the work-from-home lifestyle, layoffs, and the economic slump. Eighty-seven percent of Mumbai's principal neighbourhoods recorded rises in commercial rental prices, with the highest monthly rentals hitting Rs 277 and Rs 245 per square foot, respectively, in BKC Core and Nariman Point. Both of these neighbourhoods are in Mumbai.

When compared to the fiscal year 2018, rents in five of Mumbai's most attractive micro-markets have increased by more than 1.2 times. During the same time period, rents have increased by double digits in 64 percent of all Mumbai micro-markets.

"The real estate business is through a monumental cycle," said Boman Irani, president of CREDAI-MCHI. "The growth in housing rents provide a glimmer of confidence to both developers and homeowners," Irani said. This is encouraging news since it indicates that in the next months a greater number of individuals will be able to purchase houses. Rental costs in India's main cities have been on the increase as a result of the increasing number of hybrid work schedules used by enterprises in India as well as the resumption of classes at universities and colleges. Since the beginning of the calendar year 2022, the 2BHK rental rates in Malabar Hill's A-rated property market have averaged Rs 2,15,000. (YTD). The recovery of the economy, the growing values of houses, and the rising demand for larger living quarters are some of the factors that are contributing to this trend. All of these factors are reversing the grim scenario that was brought on by the aftermath of the epidemic. Despite the fact that inflation has grown, investors are more ready to put money into such houses since their return on investment (ROI) will be better than it would have been in the past. This is the reason why investors are more willing to put money into such homes.

74% of all micro-markets in Thane have dominated the area as a result of the region-wide rise in house rentals by double digits. This is despite the fact that the residential sector has increased greatly from the levels it was at in FY2018. The fact that rents in the Mumbai office market have increased by 88% is a sign that commercial activity is improving. Irani's previous comments will now be continued.

Between the months of March 2016 and March 2017, the median monthly rent in MMR, which is sometimes considered as the most expensive real estate market in the world, increased by 3 percent when compared to the same time period in 2015. When compared to the previous year's calendar, the monthly rentals in some micromarkets, such as Balkum, Andheri West, Ghansoli, Borivali West, and Bandra East, have climbed the highest.