India Rental Housing Market to register an exceptional CAGR through 2028
Expanding gig economy and
burgeoning millennial population are significant factors driving the growth of
the India rental housing market during the forecast period of 2024-2028.
According to TechSci research report, “India Rental Housing Market - By Region, Competition Forecast &
Opportunities, 2018-2028,” the India
Rental Housing Market is expected to register a robust growth and expand during
in
the coming years. the India rental housing market is expected to grow
at an impressive rate during the forecast period on account of the increasing
urbanization and disposable income. This has led to the migration of people in
search of jobs and for educational facilities from Tier 2 cities to Tier 1
cities. This in turn is expected to positively influence the market growth
through 2028. Additionally, paradigm shift from joint families to nuclear
families is also expected to propel the market growth. People have started
moving out of their families and are living in rented properties where they can
live an independent life. Furthermore, the sudden outbreak and spread of the
COVID-19 pandemic in the country and with prevailing lockdown conditions, the
government has come up with an economic package to give a push to the country’s
economy, which was completely shut down during this lockdown. The government
has made an announcement of providing affordable rental housing facilities to
the migrant workers and poor who have drastically been impacted by the pandemic
and lockdown. The government is planning to convert the government funded
properties into affordable rental housing complexes. Also, the government has
announced providing subsidies and tax benefits to any private organization or
builder who will be providing rental housing. However, increase in number of
vacant stocks in cities might hamper the market growth through 2025. Besides,
poor maintenance of the rented property might also restrict the market growth.
Additionally, low rental yield especially in case of standalone spaces &
villas and the old apartments & buildings might further restrict the market
growth. Also, the concerns of forceful possession of property can further
impede the market growth. Furthermore, security deposit issues can also hinder
the market growth.
Shared rentals
are in high demand as India is expanding gig economy
and burgeoning millennial population. Home ownership is secondary
for the millennial generation in favor of job mobility and location
flexibility. Homes are instead seen as temporary possessions that can be
improved as a person progresses in life. This one-of-a-kind demand opportunity
created by millennial spending proclivity has attracted a lot of private equity
investment and a new generation of entrepreneurs to the co-living segment. Many
developers have made plans to enter the co-living market, including the
Bengaluru-based Puravankara and Embassy Group. Hotel chains like Oyo Hotels
& Rooms and Lemon Tree Hotels, which are exploring the fully managed
housing rentals market for the millennial age group, have shown a lot of
interest in this subsegment of the rental housing market. Young people are
attempting to avoid the numerous issues that come with renting an apartment,
such as brokers dominating the disorganised and fragmented landscape, arbitrary
rules, crowded housing space, and disputes with landlords, as they relocate to
new cities. While the co-living market and other short-term rental option
businesses are thriving, the employer-provided housing trend is fading.
Browse over XX
market data Figures spread through XX Pages and an in-depth TOC on "India Rental Housing Market.”
The India rental housing market is segmented based on type, property type, size
of unit, location, company, and region. Based on property type, the market can
be categorized into fully furnished, semi-furnished and unfurnished. Among
these, the fully furnished segment is expected to hold the largest market share
through 2028. This can be attributed to the fact that the working or student
population who have migrated out of their cities, prefer a rented property
which has all the necessary furniture and appliances to avoid purchase of these
items. On the other hand, the unfurnished type is expected to register the fastest
growth in the market on account of their affordability. Additionally, any
destruction to the amenities of a fully furnished house leads to deduction of
amount from the security deposit money. Also, the availability of platforms
like Rentickle, Rentomojo, among others, provides all the necessary household
furniture and appliances at affordable rates with their guarantee of
maintaining and replacing the rented items in case of any problem. This in turn
has increased the trend of renting unfurnished houses, where people have
started renting the essential household items from these businesses. Based on
location, the market can be bifurcated into metro and non-metro. Here, the
metro segment is expected to dominate the market owing to the affordability
constraints pertaining to premium houses especially in Tier 1 cities. This has
in turn increased the demand for rental housing.
Major companies operating in the India rental
housing market are:
- Nestaway Technologies
Private Limited
- Zolo Stays
- ZiffyHomes
- OYO Life
- CoHo
- Stanza Living Company
- Grexter
- Housr Technologies Pvt
Ltd
- Stayabode Ventures
Private Limited
- SimplyGuest
Various companies operating in the market are following strategies such as
mergers & acquisitions, collaborations & partnerships, among others to
stay competitive and have an edge over other market players.
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“India rental housing market is expected to witness significant growth during
the forecast period on account of the increasing affordability or budget
constraints for home ownership. Additionally, availability of suitable rental
housing options with all facilities and amenities at a good location is further
expected to propel the market growth. Furthermore, the presence of real estate
dealers and rental housing provider companies, which help in providing
desirable properties according to the need and budget, is expected to create
lucrative opportunities for the market growth through 2028.” said Mr. Karan
Chechi, Research Director with TechSci Research, a research- management
consulting firm.
“India Rental Housing
Market By Type (Standalone Spaces,
Society Based), By Size of Unit (Up to 400 square feet, 400-800 square feet,
above 800 square feet), By Property Type (Fully Furnished, Semi-Furnished,
Unfurnished), By Location (Metro, Non-Metro) By Region, Competition Forecast
& Opportunities, 2018-2028,” has evaluated
the future growth potential of India Rental Housing Market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision-makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the India Rental Housing Market.
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