The Mumbai Metropolitan Region (MMR) including Thane and Navi Mumbai regions, witnessed a maximum rent inflation of 18% in 2018, the highest among five Indian cities, a recent survey reveals.
The average rent in MMR jumped to Rs 21,168 last year from Rs 17,912 in 2017 followed by Chennai and Bengaluru that saw rents increasing by 15% and 14%, respectively. Rent inflation in Gurugram was close to 11% while Pune experienced the lowest rate of 7%.
The India Rent Report 2018 (Residential) stated that the 18% inflation in MMR is based on the 2.5 lakh properties listed in this region with a website which conducted the survey. “We took data of 2017 for reference when rent was more or less stagnant across cities as demonetization had hit in towards the end of 2016,” it said.
Across the country, Mumbai follows Bengaluru and Chennai in terms of the size of the security deposit. In Mumbai, the average deposit last year was Rs 89,850 while in Bengaluru it was Rs 1.3 lakh and Chennai Rs 1 lakh.
Among those surveyed in Mumbai, the top-most priority of those who wished to rent a place was water supply (85%), followed by security (76%), lift (61%) and parking (48%). Merely 20% wanted a swimming pool facility.
The survey found that 70% of tenants in Mumbai prefer no brokerage, followed by 16% who find houses through friends or family, 20% who find rental houses through real estate websites and 12% through brokers.
“In this case, people often opt for more than one option, instead of sticking to one,” it said. A majority of people in MMR (81%) do not find or rarely find value in brokerage services.
Despite the falling and yet high real estate rates, 52% of tenants in Mumbai aspire to own a house in the city while 86% said if they purchased one, it would be for self rather than investment.
According to the report, Gurugram stood out among other cities with regard to the number of women searching for homes online. Most of them admitted to not wanting to deal with brokers and preferred to close their transaction through real estate portals.
The number of live-couples also showed an increase. Bengaluru and Pune had more people looking for live-in accommodation. “A typical Indian tenant is young with a median age of 28. They prefer to stay close to their workplace and shopping places to cut travel time. While a very big majority still prefers to visit the house before finalizing, a greater number has started resorting to searching online to know other options and do not trust the broker blindly,” it said.
In spite of the rent inflation, more people in 2018 chose 2BHK and 3BHK flats. “This is a significant development from last year (2017) when 1BHK was most sought after. There has been a sharp decline in people choosing 1RK as compared to last year with only 8% preferring this accommodation. In 2017, this statistics was 16%,’’ said the NoBroker.com report.