Mumbai: MMR house rents raised up to 14% in 2022

Mumbai: In 2022, rent for homes in the Mumbai Metropolitan Region increased in the range of 1%to 14%. During the year, there was more demand for bigger properties of 2BHK and 3BHK, primarily due to the hybrid work culture in practice.

During 2022, Mumbai witnessed an increase of 4% Year on Year in average rental values. The market gained momentum as end-users increasingly considered leasing larger homes, a result of the rise in hybrid work culture, as per market analysts.

These requirements for bigger configurations of rental homes were witnessed across Mumbai, especially for the 2 BHKs and 3 BHKs.

1%-9% increase in rental values witnessed by micro markets: Report

“All micro markets witnessed an increase in rental values, estimated in the range of 1%-9%. The micro-markets of South Mumbai, Navi Mumbai and Thane recorded the maximum increase of 7%-9% Year on Year. The rise in rental values can be partly attributed to pent-up demand for rental properties due to redevelopment of dilapidated buildings,” showed report by real estate consultancy Savills India.

As per portal NoBroker’s report onthe year that was, there was an average rental increase of 14.20% in Mumbai with Thane West, Andheri West, Airoli, Andheri East and Malad West being the top five most sought-after localities.

57% of the landlords in Mumbai had increased their rents in 2022: Report

“Inventory crunch is the major driving factor for rent increase as employees are flocking back to their work cities. In 2021, 53% of landlords had reduced the rent to attract tenants,” read the NoBroker report. Now, 57% of the landlords in Mumbai had increased their rents in 2022. Such landlords hiked the rents in the range of 1% to over 30%, as per the micro conditions as well as rising demand for rental space.

The study commissioned by NoBroker also showed that 78% people looking for a rented place preferred moving into an area closer to work to avoid commuting, even if they ended up paying a little more.