The residential rental market in Mumbai's western suburbs is booming, driven by strong demand and limited quality housing. Key areas like Andheri, Goregaon, Malad, and Borivali have seen rental prices surge, with premium gated societies experiencing a cooling growth rate of 5-9% in 2024, after a 50-60% spike from 2021 to 2023. Factors such as increased professional migration and enhanced infrastructure are reshaping the rental landscape, creating opportunities for developers and investors alike.
The residential rental market in Mumbai's western suburbs has experienced a significant rise, fuelled by increasing demand and a limited supply of quality homes. Key localities such as Andheri, Goregaon, Malad, and Borivali have witnessed a surge in rental prices over the past year, establishing themselves as some of the hottest real estate markets in the city.
According to data from Zapkey.com research, Rental growth across premium gated societies in Mumbai has cooled down to 5-9% in 2024 after a growth of almost 50-60% in the last two years between 2021-23. Various industry experts have analysed this emerging trend, highlighting factors such as an influx of professionals, the city's expanding infrastructure, and the development of premium housing projects. This shift is reshaping Mumbai's rental landscape, creating opportunities for both developers and investors.
Commenting on the trend, Ms. Shraddha Kedia-Agarwal, Director of Transcon Developers, remarked, "The rise in rental prices in Mumbai's western suburbs is a direct reflection of the demand for modern, well-equipped homes. The area's connectivity, proximity to commercial hubs, and lifestyle amenities has made it an attractive choice for both locals and expatriates. At Transcon, our projects are designed to meet the evolving preferences of tenants who seek high-quality living spaces."
For instance, a 3 BHK apartment in Malad East along the Western Express Highway near the Metro station was available for rent at INR55,000 per month in 2021. This amount rose to INR 85,000 per month in 2023, and by 2024, it reached INR 87,000, according to Zapkey.com research data.
From a demand perspective, Mr. Umesh Jandial, Chief Business Officer of Omkar Realtors & Developers, stated "We are observing increased demand from tenants looking for premium rental options in key western suburb localities. Our developments, like Omkar Alta Monte in Malad East, cater to this segment by offering a blend of luxury and convenience, which has contributed to the overall rental escalation in these neighbourhoods. With the improved metro connectivity and infrastructure, this trend is likely to sustain."
Similarly, a 2 BHK apartment in a premium building in Borivali was available for a monthly rent of INR 39,000 in 2021, rising to INR 58,000 in 2023. However, in 2024, the same building has 2 BHK apartments listed for a monthly rent of INR65,000, based on research data from Zapkey.com.
Highlighting the reasons behind the rental surge, Mr. Rohan Khatau, Director of CCI Projects, noted, "The rental market in Mumbai's western suburbs is benefiting from the city's infrastructural growth, such as the completion of new metro lines and arterial roads. This is particularly evident in Borivali and Kandivali, where tenants are seeking homes that offer superior connectivity and contemporary living. Developments such as Rivali Park by CCI Projects are strategically located to cater to this growing demand."
Experts anticipate that the upward trend in rentals will persist, with further increases expected as new infrastructure projects approach completion. The rise in demand is also drawing investors who view the rental market as a lucrative opportunity, with returns projected to outpace those in other areas of the city.
In conclusion, as infrastructure projects near completion, experts predict that rental prices in Mumbai's western suburbs will continue to rise. The demand for premium rental options is attracting both tenants and investors, positioning this market as a lucrative opportunity for long-term growth. With enhanced connectivity and modern amenities, these neighbourhoods are becoming increasingly desirable for residents.
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