Mumbai: 33% of MMR population resides in rented homes

The demand concentration for housing units in the range of 2.5 – 5.0 mn was recorded at 13% and units above 5 mn at 20%.

Sanjay JogUpdated: Saturday, October 08, 2022, 01:11 PM IST
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Knight Frank - NAREDCO in their report ‘Brick by Brick: Reimagining Affordable Mumbai’ said that the Mumbai Metropolitan Region (MMR) recorded a significant demand-supply gap for affordable housing. According to the survey, MMR registered high demand for affordable housing units with 67% of the demand concentration being registered for units less than 2.5 mn. The demand concentration for housing units in the range of 2.5 – 5.0 mn was recorded at 13% and units above 5 mn at 20%.

Despite the strong interest in this segment, the affordable housing supply has not been able to cater to the demand. The supply of housing units above 5 mn recorded the highest concentration at 44% followed by units in the range of 2.5 – 5 mn at 34%. The supply concentration for housing units less than 2.5 mn was recorded the lowest at 22%, clearly showcasing the huge supply gap for urban affordable housing in the region.

Regarding the price willingness of an individual for buying a house, 38% of the respondents would prefer to buy housing units priced less than Rs 15 lakhs. 26% of the respondents preferred a budget of Rs 16 Lakhs – Rs 25 Lakhs, whereas 36% of the respondents had a budget of more than Rs 25 lakhs for buying a house.

According to the report, Mumbai registers almost 20,000 to 50,000 residential leave and license agreements every year. Considering an average annual number of 35,000 of leave and license agreements with an average tenure of 22 months and adding additional consideration of non-registered agreements the total pool of active residential tenants in Mumbai works out to almost 1,00,000 units. The MMR region witnessed the registration of over 1,05,984 residential leave and license transactions since January 2020.

Nearly 97% of all people living in rented accommodation are willing to purchase and move to a better housing unit if the travel time is less than 1.5 hour from their place of work; however, 64% of the respondents have a budget of less than Rs 25 Lakhs.

On the aspect of the housing journey of an average Mumbaikar, the survey cited that 32% of the respondents live in houses owned by families, 36% living in rented accommodation, while 27% of the respondents live in self-owned houses. The survey further tracked the housing journey of an immigrant which stated that 56% of the immigrants reside within the Mumbai Island city, whereas 27% decided to stay in Mumbai Suburban region and 17% decided to travel from the peripheral locations such as Navi Mumbai, Thane, Vasai-Virar.

70% of the respondents had been staying within the city for more than 10 years.

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