Residential rentals in Mumbai have always been high as compared to the other cities in India. Just as the capital value of property shows an upward trend, there is also a corresponding increase in the rental value. Analysis has shown that with a 30-50 per cent hike in capital value of properties across Mumbai, rentals got a corresponding boost.

Residential rentals in Mumbai have also emerged as a lucrative option for all those who seek to make the most out of the booming real estate sector. Therefore, a chunk of people who have been investing in a second home in Mumbai; earlier for tax saving are now leasing them out for rentals. So the new trend of investment property is also catching up in the Mumbai residential rental market.

Mumbai residential rental market varies from locality to locality and to each individual building. It has been lately seen that at specific property locations, the increase in rental rates have been more than 100 per cent in the last one year.

This is due to the demand-supply mismatch both in the property and the rental market. As rental values go up in the traditional hotspots like Bandra, Khar and Andheri, people are forced to move to new areas like Goregaon and beyond, which have thereby pushed up the rental rates in these areas too.

Indicative figures

Rental Apartments: The rental apartments in Mumbai are available in all specifications and according to the budgetary needs of the consumer. While there are budget apartments available to meet the demands of the salaried class; so also are available the luxury apartments and high-end rental homes to cater to the executive class of the corporate houses and also the diplomats and expats who mostly choose Mumbai as their operational base.

Rental Homes: Rental homes in the residential segment are available either as independent houses, bungalows, duplexes, row houses, penthouses and condominiums. The rental rates in some areas of Mumbai are too astronomical to believe. While there are houses in Mumbai's Malabar Hills that have rental values of Rs. 7 lakhs per month, a penthouse in Carter Road fetches a monthly rental of Rs 8 lakhs.

Service Apartments: Another trend that has swiped the Mumbai residential rental market is the service apartments. Service apartments in Mumbai is an add-on advantage for the thousands of business personnel's and corporates; not to forget the expats and tourists who are finding the option of service apartments appealing instead of hotel rooms. The service apartments are available in configurations to suit the needs and budget of all sections of customers. Besides providing staying options from a minimum of 1 day to a year, service apartments also come with facilities like housekeeping, kitchen services, self cooking facility, necessary gadgets and exclusive permission of use of gym, clubhouses and swimming pool.

Mumbai Residential Rentals: A wide perspective

While capital values on an average in Mumbai, have shown an increase of 15 to 20 per cent (depending on the project) during the course of the last 12 months; there has been a corresponding increase in rents too. Prime apartments in the south Mumbai micro markets of Nepeansea Road, Fort and Cuffe Parade remain the highest priced in the city, with a price range from Rs 17,000-22,000 per sq. ft.

Other suburban residential micro markets of Andheri, Goregaon and Mulund are also witnessing fresh construction activity with projects from prominent residential developers like K Raheja, Royal Palms and the Runwal Group. This can be considered to be a positive step for creating more residential spaces thus stabilizing the flamboyant Mumbai residential rental market.

Residential rentals in Mumbai have its most dominant clientele in apartment rental; since as the city of skyscrapers, apartments are more in demand and availability is comparatively higher. The rent of apartments in Mumbai varies according to the area and specifications.

The Maharashtra Rent Control Act of 1999 has been responsible for regulating the rental laws of the city. The rental agreements for all rental deals and transactions made between a landlord and a tenant is based on this act.