29% rise in housing rent in Mumbai Metropolitan Region in last 3.5 years: Report

Average housing rent in Mumbai Metropolitan Region (MMR) has increased by up to 29 per cent in the last three and half years, according to a report by CREDAI-MCHI and data analytic firm CRE Matrix.

The report -- MMR Property Rentals Tracker -- has captured housing rentals trends for 2 BHK houses across Grade-A buildings not more than 7-8 years old across four macro-markets -- Mumbai, Palghar, Raigad and Thane.

Average monthly rentals in over 80 micro markets of the MMR rose in a range of 4 per cent to 29 per cent in August this year as compared to December 2018.

"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 homebuyers since this will encourage more housing sales in the upcoming months," said Boman Irani, President, CREDAI-MCHI.

The 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, he added.

"Each micro-market in MMR has witnessed a rise in housing rentals, with 65 per cent of the micro-markets having more than a 1.1-time increase in rentals compared to CY (calendar year) 2018," said Abhishek Kiran Gupta, CEO, CRE Matrix.

As per the data, the average monthly rentals at Balkum in Thane rose 29 per cent to Rs 31,000 from Rs 24,000 in the 2018 calendar year.

Rents at Ghansoli rose 25 per cent to Rs 28,800 from Rs 23,000, while in Andheri West, it appreciated by 25 per cent to Rs 59,000 from Rs 47,100. 

In Borivali West, rents were up 25 per cent to Rs 36,900 from Rs 29,500.

Rents in Lower Parel rose 22 per cent to Rs 1,46,000 from Rs 1,20,000.

Housing rentals at Bandra East rose 22 per cent to Rs 93,000 from Rs 76,000, while in Bandra West, it went up 20 per cent to Rs 118,000 from Rs 98,000.

Titwala-Ambivli saw an increase of 21 per cent to Rs 9,700 from Rs 8,000, while that in Kopar Khairane was up 20 per cent to Rs 18,000 from Rs 15,000.

In Andheri East, rents appreciated by 19 per cent to Rs 52,000 from Rs 43,600.

Borivali East too saw rents rising by 19 per cent to Rs 34,600 from Rs 29,000 per month.

The average rentals for 2BHK units of grade-A housing projects in Malabar Hill stood at Rs 2,15,000 in August 2022, up 10 per cent from Rs 1,95,000 in December 2018.