PNN
Mumbai (Maharashtra) [India], September 25: The residential rental market in Mumbai's western suburbs has witnessed a sharp increase, driven by rising demand and limited supply of quality homes. Popular localities such as Andheri, Goregaon, Malad, and Borivali have seen rental prices surge over the past year, making it one of the hottest real estate markets in the city.
"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," according to data shared by Zapkey.com research.
Several industry experts have weighed in on this growing trend, citing various factors such as the 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, Shraddha Kedia-Agarwal, Director, Transcon Developers, noted, "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."
A 3 BHK apartment in Malad East along the Western Express Highway near the Metro station was available on rent for Rs55,000 per month in 2021. This went up to Rs85,000 per month in 2023, and in 2024 the rentals were at Rs87,000 per month according to research data by Zapkey.com.
Speaking from the demand perspective, Umesh Jandial, Chief Business Officer, Omkar Realtors & Developers said, "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 neighborhoods. With the improved metro connectivity and infrastructure, this trend is likely to sustain."
A 2 BHK apartment in a premium building of Borivali was available for a monthly rent of Rs39,000 in 2021 and went up to Rs58,000 in 2023. However, in 2024, that same building has 2 BHK apartments being offered for a monthly rent of Rs65,000, according to research data shared by Zapkey.com.
Highlighting the factors for the rental surge, Rohan Khatau, Director, CCI Projects mentioned, "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."
The upward trend in rentals is expected to continue, with experts forecasting further increases as new infrastructure projects near completion. The rise in demand is also attracting investors who view the rental market as a lucrative opportunity, with returns expected to outpace those in other parts of the city.
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