No one really stops to ask why. It’s just how things are done.

The ‘10% Increase’ — A Tradition, Not an Economic Logic

There’s no formal rule or market-driven formula that mandates this annual hike. The 10% escalation has simply become a social and market habit, passed down over years of rental negotiations.

In reality, rent should reflect market demand, property condition, location dynamics, or changes in supply. But in Mumbai, where housing scarcity is a real issue, tenants often have little room to negotiate. Landlords expect the increase, brokers reinforce it, and tenants reluctantly accept it.

In some years, the real estate market stagnates. In others, the property may not have been maintained at all — leaking pipes, broken tiles, or paint peeling off. Yet, the rent still goes up. Why? Because “it always does.”

The Broker Fee Puzzle

Another unspoken norm is the brokerage on renewals.

Typically, in the first year, brokers charge one month’s rent as their fee — fair enough for the effort involved in finding a property and negotiating the deal. But many brokers demand the same one-month fee again during renewal, even when no new tenant search or extra work is done.

For a tenant paying ₹50,000 per month, that’s ₹50,000 again, simply for signing a piece of paper for the second year. Some argue it’s for “services” or “coordination” — but let’s be honest, it’s mostly an accepted practice, rarely questioned.

Why We Don’t Push Back

Part of the reason this continues is social inertia. Many tenants fear confrontation or losing their home in a competitive rental market. Landlords often mirror what they’ve seen others do. Brokers rely on these norms for steady income.

It’s a cycle where no one questions, so everyone follows.

But perhaps it’s time to ask:

• Is the property truly worth more this year?
• Has the market rent in that area actually increased?
• Should brokerages for renewals be regulated differently?
• And most importantly, do we, as tenants and landlords, have the courage to say, “No, let’s talk about this logically”?

The Market Moves When People Do

Real estate norms don’t change overnight. They shift when people start challenging defaults. Tenants can politely but firmly ask for justifications for hikes. Landlords can choose to be fair and realistic. Brokers can adapt their business models to reflect actual value addition.

For a city that prides itself on dynamism, Mumbai’s rental culture has remained surprisingly rigid. It’s time we re-examined these unwritten rules — because unquestioned norms eventually become unfair practices.

Also Read: Fractional Ownership vs. Traditional Real Estate: A Comparative Analysis

The post Brokers, Landlords, Tenants: How Everyone Keeps Mumbai’s Rent Rising appeared first on Square Feat India.

The Central Government’s recent decision to slash GST on cement from 28% to 18% has been hailed as a historic move. For developers, it translates into a 3–5% reduction in construction costs. On paper, this sounds like a big win for the housing sector and for affordability.

But the question that every homebuyer is asking — and should be asking — is simple: Will this benefit really reach them?

Past Lessons: Relief for Builders, Not Buyers

My two decades of reporting on Indian real estate have shown me one consistent pattern — whenever the government provides relief to developers, the benefits rarely trickle down to homebuyers.

Even Maharashtra Chief Minister Devendra Fadnavis highlighted this at a recent event with developers in Mumbai. He openly said that whenever builders came to him seeking reduction in government premiums and charges, he noticed that instead of home prices reducing, they actually went up. The relief padded builders’ profit margins, but buyers saw no respite.

The Infrastructure Paradox

There’s also the paradox of infrastructure. When new infrastructure is built, logic dictates that real estate prices should become more affordable due to improved supply and connectivity. Yet, the opposite happens in India’s big cities.

Take the example of Mumbai’s Coastal Road. This massive project has transformed accessibility, but instead of stabilising prices, it has fuelled them. In Worli today, homes are being sold at well above ₹2 lakh per sq. ft. Clearly, infrastructure is used as a justification to push prices higher, not lower.

So, Should Homebuyers Be Hopeful?

Frankly, I’m not optimistic. The GST reduction is significant, but if history is any guide, developers are far more likely to pocket the cost savings rather than pass them on. Homebuyers in India are fragmented, lacking the collective bargaining power that developers wield through their associations.

However, there is one step buyers can take. If you have recently booked in a project, organise collectively and ask your builder: If your construction costs are reducing by 3%, why can’t you pass on at least 1–2% of this benefit to us? It is only fair that the fruits of a government decision intended to support affordability also reach the people it was meant to help.

Conclusion

The government’s GST reform on cement is a bold and positive move. But unless developers show willingness to share the relief, homebuyers may once again be left out of the equation.

As someone who has reported on this sector for 20 years, my view is clear: until buyers demand accountability, the cycle will not change. Builders will continue to prioritise profit over affordability.

The question is — this time, will homebuyers raise their voice?

Also Read: Slash GST Rates, New Demand After Stamp Duty Cut

The post GST Cut on Cement: Will Homebuyers Really Benefit, or Will Developers Pocket the Gains? appeared first on Square Feat India.