With an average rent of Rs 90,000-2 lakh, rentals in several areas of Bengaluru are currently nearly on par with most of the most desirable areas of Mumbai, including Worli, Bandra, Juhu, and Versova. Based on the information provided by Ravi Kewalramani of RK Realtors in Mumbai, Malabar Hill demands the highest price of Rs 3.5 lakh.
A second renter in Mumbai said that the landlord had suddenly raised her rent for a two-bedroom apartment by Rs 18,000 to Rs 90,000 per month.According to many renters Moneycontrol talked with, it is nearly hard to find a decent 1 BHK in Mumbai for less than Rs 30,000 a month these days.
Experts further point out that while rental apartments are available on demand, other major cities like Delhi-NCR have similar challenges. For instance, there are fewer one-bedroom possibilities in neighborhoods like BK Dutt Colony, Sewa Nagar, and Jor Bagh, but those that are accessible are pricey; local brokers note that furnished apartment rentals in these regions range from Rs 25,000 to Rs 30,000 per month.
According to an online property consultancy Magicbricks, which operates from October to December 2023, rentals in Indian metropolitan areas have increased 17.4% YoY, with Gurugram leading the way with a 31.3 percent spike. Delhi had an increase in yearly rental rise of 10.5 percent, while Bengaluru recorded a YoY growth of 23.1 percent.
A Dent in the Cost of Living
In 2023, YouGov, a market research organization, conducted a study and found that almost 40% of urban Indians had less disposable income due to significant inflation over the previous year. Still, this drop was among the lowest in the world. According to the survey, over 41% of Indians are concerned about how inflation would affect their spending in the upcoming year as they already spend a portion of their disposable income on essentials like food and rent.
A different recent NoBroker study revealed that over 70% of Gen Z and millennials thought Bengaluru's rental prices were too high in the first half of 2023.
A growing number of renters are choosing to buy rather than continue paying rent since the difference between monthly rentals and EMIs is getting less. Since rent is the largest monthly expense in places like Bengaluru and Mumbai, city life has grown more expensive, Garg continued.
Bengaluru placed 141st out of the top seven cities in the housing sentiment index, according to a study done by online real estate company Magicbricks between March and April of 2024. In a poll of more than 4500 homebuyers, Noida came in at number 154, Gurugram at number 157, and Kolkata at number 160. It also said that purchasers with positions in the government (158) and medical and pharmaceutical (163) sectors showed a significant pro-housing mindset, maybe as a result of the associated financial security.
"Indian income rates are static, but overall income is still growing, driving up house prices in all cities. But if real estate values rise in 2024 at the same rate as income growth, we anticipate a significant decline in the feeling toward purchasing a property," stated Vivek Rathi, Head of Research at Knight Frank India.
