In the dynamic and bustling city of Mumbai, where real estate is a premium commodity, the demand for 2 BHK rentals has witnessed a significant upswing. Let’s delve into the factors contributing to the popularity of 2 BHK units and the broader trends shaping Mumbai’s rental market.
Mumbai, known for its soaring property prices, has seen a pronounced preference for 2 BHK rentals, constituting a substantial 42% of the total rental demand in the residential segment, according to data from Magicbricks, a leading real estate home search portal. The second and third spots are claimed by 1 BHK (31%) and 3 BHK (23%) units, with larger houses (over 3 BHK) making up only 7% of the demand.
Interestingly, the demand for 2 BHK rentals aligns with the budget preferences of Mumbaikars. Rental units in the range of Rs 10,000 to Rs 50,000 per month dominate the demand, comprising 45%, followed by the Rs 50,000 to 1 lakh range at 39.1%, and units above Rs 1 lakh per month at 15%.
Magicbricks’ October to December 2023 rental index further reveals a geographical divide in Mumbai’s rental market. South Mumbai caters to ultra-luxury preferences, while the central and northern markets attract a premium clientele.
In the most sought-after localities, the average monthly rent for a 2 BHK apartment is approximately Rs 60,500, while a 3 BHK commands around Rs 87,417 per month, based on data derived from the preferences of over 2 crore customers on the Magicbricks platform.
So, why the prevalent preference for 2 BHK units? Abhishek Kiran Gupta, CEO and co-founder of CRE Matrix, a real estate analytics platform, attributes it to the affordability of 2 BHKs and their suitability for a family of four, aligning with the general demographic scenario.
Despite the overall demand in Mumbai’s rental market experiencing a 17% QoQ decline in October to December 2023, the YoY growth remains at a modest 1%. On the supply side, a 0.7% QoQ fall contrasts with a 12% YoY increase. Meanwhile, rentals have witnessed a marginal 0.1% QoQ increase and a significant 16% YoY surge.
Mumbai, among the top 13 cities in India, exhibits a robust 16% YoY surge in rents, contributing to the overall 17.4% YoY increase in the top cities. Gurugram, Greater Noida, Bengaluru, Navi Mumbai, Thane, and Pune are among the cities experiencing substantial growth.
In terms of rental registrations, Mumbai witnesses around 25,000 agreements monthly within the city limits. Notably, January 2024 recorded 26,379 rental agreements, December 2023 had 27,494, and November saw 25,211 registrations.
As Mumbai’s real estate market continues to evolve, the popularity of 2 BHK rentals remains a defining trend, reflecting the city’s unique blend of affordability, practicality, and demographic dynamics.
