Redevelopment boosts Mumbai suburb rentals

Residential rentals in Mumbai’s western suburbs are surging due to a scarcity of available land for new developments. Redevelopment of older properties in areas like Borivali, Kandivali, Malad, Khar, Bandra, and Santacruz has become a prevalent trend, driven by the need to provide alternative accommodation to property owners during reconstruction.
This surge in demand for rental properties is pushing up rental rates. Anuj Puri, Chairman of ANAROCK Group, noted that many western suburban localities have no available land, leading to increased redevelopment. This trend benefits both residents and developers, as it allows reconstruction in prime locations without land acquisition costs.
The high demand for rental properties is particularly noticeable in micro-markets where redevelopment is prevalent, creating a shortage of available flats. The redevelopment process typically takes up to three years, during which owners of the old property receive upfront annual rental payments from developers. Shalin Raina, Managing Director of Residential Services at Cushman and Wakefield, emphasized that redevelopment activities are contributing to high rental markets, with tenants willing to pay higher rents due to financial support from builders. The demand for rental properties has risen as employees return to work post-COVID, further driving up rental rates in key markets like Borivali, Kandivali, Malad, Goregaon, Andheri, and Dahisar.