Wish to have an increase in your monthly income? Looking for some good opportunities for additional cash flow boost? Well, now is the time for you. If you have a vacant space in your home or a property that you don’t use, it is just the right time to reap rewards from it and make an addition to your income by letting out the space. In other words, if you have extra space in your house, it is the right moment for you to make the most of it and act like a greedy landlord. After all, there is nothing wrong in earning some extra cash as a passive income.
Ever since the Indian real estate has started recovering from the disarrangement caused by the global pandemic, the rental housing market has been on a rise. In fact, the residential sector in India is all set to grow further amid tightening of financial policies.
According to one of the leading real estate companies in India, ANAROCK, monthy residential rental demand across the top 7 cities has increased by at least 10-20%, in comparison with pre-pandemic levels in 2019. The main reason behind this robust growth is the return of working professionals to work from their hometowns. In this post-COVID era, millennials can be seen looking for houses on rent more than ever before.
What do the stats say about rental housing?
The rental rates in pan-India witnessed a growth of 4% Q0Q displaying improved strength of the rental housing market in the country. Moreover, the India rental housing searches also grew 84.4% year-on-year in the second quarter of the calendar year and 29.4% on a sequential basis. While home ownership continues to evade many buyers due to higher prices of housing units, delays in project deliveries and unsuitable locations of pocket-friendly projects, especially in Tier I market, rental housing is increasingly gaining traction among the public majorly because of the affordability factor.
Given the current scenario, Indian rental housing can further see a boost with the help of the Model Tenancy ACt that was approved by the federal cabinet last year to bridge the gap between landlords and tenants.
Leasing activities in commercial sector also on rise
Apart from the rental housing, another segment of the Indian Realty sector which has grown exponentially in the post-COVID era is commercial real estate (CRE). With the resumption of offices in Hybrid mode, the leasing activities in CRE has also increased, particularly in Delhi-NCR. Many emerging startups and SMEs are now looking for commercial property in Delhi, office space in Gurgaon, office space in Noida.
According to a latest report by Colliers, the absorption of office spaces in Delhi-NCR has increased from 1.2 mn sq.ft. to 2.7 mn sq.ft. in the second quarter of the ongoing year. In fact, Delhi-NCR along with all the major real estate markets of India, including Bangalore, Mumbai, Hyderabad, Chennai and Pune, witnessed an uptake in the leasing activities in the same quarter.
Speaking of the commercial real estate, the demand for flexible office spaces remains high as the occupiers are actively scouting for fully-managed, tech-enabled smart workspaces that offer a collaborative environment.