Increasing working population is expected to drive the growth of India rental housing market
According to TechSci Research report, “India Rental Housing Market By Type (Standalone Spaces v/s Society Based), By Property Type (Fully Furnished, Semi-Furnished, Unfurnished), By Size of Unit (Up to 400 square feet, 400-800 square feet, Above 800 square feet), By Location (Metro v/s Non Metro), By Region, Forecast & Opportunities, 2025”, 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 2025. 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 pandemic COVID-19 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 been 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.
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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 2025. 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 in order to avoid purchase of these items. On the other hand, the unfurnished type is expected to register the highest 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 availability of platforms like Rentickle, Rentmojo, 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.
Nestaway Technologies Private Limited, Zolo Stays, ZiffyHomes, OYO Life, CoHo, Stanza Living Company, Grexter, Housr Technologies Pvt Ltd, Stayabode Ventures Private Limited, SimplyGuest and others are some of the leading players operating in India rental housing market. The companies operating in the market are using organic strategies such as product launches, mergers and collaborations to boost their share.
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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 2025.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based India management consulting firm.
“India Rental Housing Market By Type (Standalone Spaces v/s Society Based), By Property Type (Fully Furnished, Semi-Furnished, Unfurnished), By Size of Unit (Up to 400 square feet, 400-800 square feet, Above 800 square feet), By Location (Metro v/s Non Metro), By Region, Forecast & Opportunities, 2025”, 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 India rental housing market.