While everyone is talking about the sales in the real estate industry, the rent market has also done exceptionally well over the past five years. The figures will blow your mind.
By Varun Singh
Real Estate market is not all about carrying out home sales. A major protion of the the real estate industry comprises of rent.
If any given month in the city of Mumbai 5,000 home sales take place then over 15k rent agreements are also registered.
The less spoken rent market of Mumbai has shown an exponential growth over the past few years.
In January 2017, the rent market stood at 15,106 agreements. The figure jumped to 22,514 in January 2021.
The figures includes both leave and license (physical) as well as leave and license (e-registration).
| Year | Leave & License (e-registration) | Leave & License (physical) | Total |
| Jan 2017 | 7540 | 7566 | 15106 |
| Jan 2018 | 13101 | 5963 | 19064 |
| Jan 2019 | 11879 | 4490 | 16369 |
| Jan 2020 | 16166 | 5008 | 21174 |
| Jan 2021 | 18723 | 3791 | 22514 |
Data accessed by SquareFeatIndia shows that over the years, rental agreeemnts being registered has increased.
The other important fact that has cone out to the fore is that more people prefer digital registration over physical.
Also Read: Physical registration of Leave & License re-starts
For example, in the month of January 2017, a total of 7,566 rental agreements were physically registered.
This figure is more than 7,540 e-registration of leave and licenses that took place in 2017.
“Work from home has shot up for many sectors.Hence instead of employees going daily to office, they prefer a good house where they can stay and work both peacefully. This has happened more post covid19 . Post covid lot of people found the need for space,hence they decided to buy and take house on temporary rent till they get possession. One category, is of people who after liking a gated community, move in the complex to take experience before buying. Even pre covid ,over grown families decided to move out and take properties on rent. The preferred choice is mostly a gated community with amenities.”
Rajiv Jain, Ruchika Shelters
However, in January 2021, the physical registration came down to 3,791, whereas the e-registration figures grew to 18,723.
Also Read: Physical registration of leave and license agreement stopped till end of July
This also goes to show that many opting for an apartment on rent prefer the digital mode of registration over personally visiting the office and registering the agreement.
Meanwhile, if one has to gauage the rise in sheer number of homes, offices and shops being put on rent, then it has also increased drastically.
“A lot of re-sizing of homes and offices has taken place due to work from home. In 2021, most of the crowd has come back to the city, resulting in the residential apartments being leased out quickly. There has also been a slight reduction in the rents of commercial units, which is the actual reason of growth in the rental market. With schools and colleges opening soon, there’s a spurt expected in the rental market by April 2021.”
Yashika Rohira, Karma Realtors
In January 2017, total 15,106 rent agreements were registered, the figure grew to 19,064 in 2018.
It has been since then seeing a rise in January 2020 a total of 21,174 rent agreement were registered.
Finally in January 2021, the number grew to it five year high at 22,514 rental agreements being registered.
