Mumbai Redevelopment Boom Triggers Rental Market Surge, Rents Rise 25-30%

Mumbai Redevelopment Boom Triggers Rental Market Surge, Rents Rise 25-30%

Mumbai Redevelopment Boom Triggers Rental Market Surge, Rents Rise 25-30%

The rapid surge in housing society redevelopment across Mumbai has led to a significant spike in rental demand, with average rents increasing by 25-30% over the last 12-18 months, far exceeding the usual 5-7% annual hike. As thousands of residents are temporarily displaced due to reconstruction projects, the rental market is experiencing unprecedented demand, particularly in prime areas like South Mumbai, Central Mumbai, and suburban localities including Bandra, Chembur, Ghatkopar, Andheri, Kandivali, and Borivali. Even traditionally affordable areas like Mira Road, Thane, and Navi Mumbai are seeing rising demand from displaced tenants, further tightening the market.

With developers providing rental allowances ranging from 50,000 to 1 lakh per month, soaring rents in premium locations are creating affordability concerns for many families. Some tenants are opting for long-term leases of 3-5 years to lock in rental rates, anticipating uncertainty around project completion timelines. Industry experts note that landlords, aware of the situation, are capitalizing on the supply crunch, pushing rents even higher. To ease the transition, some developers, such as Paradigm Realty, have set up dedicated teams to assist displaced residents in finding temporary accommodations through brokers and real estate agents. However, as redevelopment projects continue to expand, Mumbai’s rental housing market remains under immense strain, making it a landlord’s market in the city’s ongoing urban transformation.

About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

LinkedIn - https://www.linkedin.com/in/sandeepsadhmpe/