What Is New In India’s Rental Real Estate?
For a multitude of reasons, renting as a housing option never goes out of fashion. However, patterns keep changing constantly within India’s rental real estate markets. In case you are wondering what is currently going on in this real estate space, a recent report by Housing.com has an insight to offer. Based on the traffic witnessed on the Housing.com site, the report talks about renting trends in seven major cities. The cities included in the analysis are Bengaluru, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai and Pune.
Let us look at the key findings of the report:
- Over 57 per cent renters in cities of Bengaluru, Gurgaon, Mumbai and Pune prefer to go with 1BHK units. Considering property in these cities is comparatively costlier, this makes perfect sense. Data available with PropTiger.com show the current average rate of property in Gurgaon is Rs 5,400 per square foot (sqft). In Bengaluru, you have to pay an average price of Rs 4,800 per sqft for property. In Mumbai, on the other hand, you have to pay Rs 8,200 for the same space. The average rate of property in Pune is Rs 4,700 per sqft. As property in these cities is costlier, rents are relatively higher, too.
- Over 40 per cent renters in Chennai, Hyderabad and Kolkata prefer 2BHK units, says the report. In Chennai, average rate of property is Rs 5,400 per sqft. Average rate of property in Kolkata currently stands Rs 3,800 per sqft. In Hyderabad, you have to pay an average rate of Rs 4,000 per sqft.
- Over 85 per cent renters in Bengaluru, Chennai, Hyderabad and Kolkata opt for unfurnished apartment. In the remaining three cities of Gurgaon, Mumbai and Pune, the demand for furnished apartments is comparatively higher. In Gurgaon, for instance, 44 per cent renters prefer furnished apartments. In Mumbai, 27 percent renters prefer furnished apartments while 13 per cent tenants go for similar units in Pune.
- For the comfort and security that they provide, apartment units are preferred to independent houses by renters. The report says 61 per cent renters in the seven cities opt for apartments. In Gurgaon, however, 30 per cent renters go for independent homes. Similarly, 26 per cent people in Bengaluru go for independent homes.
- Renters of Bengaluru, Gurgaon, Hyderabad, Kolkata and Pune prefer comparatively newer units that are not more than two-year old, says the report. In Chennai and Mumbai, renters are comfortable with older units, too, that are aged between five and 10 years.