Amid redevelopment, rents on the rise in western Mumbai

As a number of old buildings are undergoing redevelopment in Mumbai, micro-markets in the city’s western suburbs have seen up to 15% increase in rentals. At a rough estimate, around 3,000 projects are under construction in Mumbai, about 60% percent which are redevelopment projects. “Going by this, it is obvious that rental demand has increased, which has also resulted in monthly rentals increasing by 10-15%,” said Ajay Chaturvedi, chief executive of Mumbai-based firm Real Estate Study Circle. Ritesh Mehta, senior director and head, west & north, Residential Services & Developer Initiatives, JLL, said, “Rents increase annually by about 5% in Mumbai. However, in the recent past, rentals have increased by up to 15% in some areas. This is due to two reasons. One is, post Covid, as people started coming back to the city, rents increased. The other reason is redevelopment. Areas between Juhu-Bandra and Borivali-Kandivali are seeing a lot of re-development, due to which rentals have increased in these micro-markets.” Ravi Kewalramani, director, RK Mumbai Realtors, said rentals have increased between 10-20% across Mumbai. “In luxury markets like Juhu and Bandra, I had rented out a 2BHK at Rs 77,000 two or three years back. Now the same property is being listed at Rs 95,000, he said. Kewalramani said 3BHK and 4BHK luxury apartments are being rented out for Rs 3-5 lakh. Demand is such that hardly any units are left in the market.See also: Hyderabad sees registration of homes worth Rs 22.37 bn in OctGodrej Properties acquires land in Pune for group housing project