The rental industry is on an impressive comeback trail. After the initial setback of COVID first phase, the industry has bounced back this year, reporting an impressive surge in residential rentals across the country. In cities like Bengaluru, rents have shot up by as much as 40%. Other metro cities have seen similar hikes
Apart from the resumption of the economy, this rebound also has far-reaching consequences for urban planning. It shows a healthy upward swing in real estate ROIs. It can be a decisive factor in determining future developments and further urbanisation. It will further encourage consolidation in the rental industry.
This is evident by the strengthening of emerging players like ApnaComplex Rentals in streamlining the system. By leveraging technology to resolve existing challenges in the system while creating an improved user experience, ApnaComplex Rentals is playing a critical role in bringing accountability and expediting lagging processes.
What’s Driving It?
To understand this momentum, we have to look at the factors driving the revival. These include:
A correction: The surge in rentals can be viewed as a long overdue correction. In the economic upheaval of the pandemic, many landlords were forced to cut back on rents. Many also agreed to postpone rent collection. Apart from requests from tenants, they also faced political pressure. As a result, rental hikes were kept in stasis in 2020-21. Hence, the current hike indicates a correction as homeowners aim to recoup their losses.
Opening of offices: As economic activity resumed and the lockdown was removed, migrant workers and professionals started streaming back to their work. This led to looking for rented homes in metropolitan areas, pushing up the demand. According to an ANAROCK report, the hike in rental demand in the top seven Indian cities has been an impressive 10-20% in 2022 as compared to the pre-pandemic period in 2019.
Lagging supply: Even as demand goes up, supply has seen a reversal. Inventory swiftly dwindled as construction came to a virtual halt during the initial phases of the pandemic, leading to an imbalance between demand and supply. The result is that landlords in high-demand areas like gated communities are seeing an unprecedented surge in rental incomes.
The Road Ahead
The question now is whether it’s a brief corrective surge or will we see a consistent upward swing in rentals? All indications point towards the latter possibility. As companies encourage more employees to come back to office, demand for housing will spike further. The current pace of real estate construction projects is not fast enough to keep up. This means that rentals may continue to rise for some time.
Most importantly, the growth of the rental industry will come across different segments and not just gated communities. With the government expected to renew focus on affordable housing, tenants from different income classes will find more and better options. With more states expected to adopt the Model Tenancy Act in the coming months, the rental industry will also see much-needed transparency and regulation.
It is expected to facilitate further consolidation of organised players like ApnaComplex Rentals. This will lead to focus on maximising rental yields for landlords while ensuring that tenants get quick delivery and value for their money.
Creating a Paradigm Shift
The surge in rentals is now being led by organised players like ApnaComplex. Traditionally, the rental industry has been dominated by unorganised local brokers who were challenged by lack of resources in terms of technology or manpower. ApnaComplex is changing the status quo by providing benefits for all stakeholders including homeowners, the society, and tenants.
In a first for the industry, ApnaComplex Rentals offers the society a fee share from rental transactions. It also ensures a higher rental yield for the landlord (by 4.5% to 5%). This is further enhanced by a lower three-week transaction fee, as against higher market operating charges, ensuring maximum gains for the landlord.
If you want to know more about ApnaComplex Rentals, call us at 0120 71173344 or write to us at firstname.lastname@example.org.