- About 71% of NoBroker’s respondents
Rent Report have already been moved to their work cities. - These relocation activities have led to a real estate crisis in cities such as Bengaluru, Mumbai and Pune.
- Due to the shortage of available real estate, rents in all cities have risen by no less than 12%.
People are willing to spend a lot more on their rent in search of better and larger accommodations after the Covid-19 pandemic, a recent report from online real estate rental platform NoBroker has revealed. But rents in the markets have also risen, prompting people to buy their own homes.
About 71% of respondents to NoBroker’s Rent Report have already moved to their work cities, while 54% plan to move within the city or to the city where they work in the near future. These relocation activities in the past six months have led to a real estate crisis in cities such as Bengaluru, Mumbai and Pune, the report said.
Saurabh Garg, co-founder and chief business officer of Nobroker, noted that the lack of available real estate and the demand – have increased rents in cities by 12%. Eight out of ten respondents now indicate that they have difficulty finding a home of their choice.
“Rentals have bottomed out in recent years and many landlords have cut rents to retain tenants. However, recent months have been challenging for tenants who now have to pay a much higher price for the same homes that were available for much lower rent during Covid,” Garg said, adding that rental inflation could ease in the coming months. .
Buying out an apartment is one of the bucket list
The tenants are looking for larger apartments to resume their work from the office life. The NoBroker report noted that seven in ten respondents have confirmed that their rental budget has increased, especially as they look for larger accommodation.
“Savings from the pandemic and salary increases were other reasons that contributed to this,” the report added.
NoBroker also noted that 72% of renters are even considering buying a home since
interest rates are “really” low.
“Interest rates have increased slightly, but they are still much lower than pre-pandemic levels. Interestingly, the reasons cited for this are that EMIs are more manageable, it is difficult to find a good rental property and prices are expected to rise,” the report added.
A Crisil report published in May noted that housing demand in India’s six largest cities – Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Pune, Kolkata and Hyderabad – is expected to grow by 5. -10% will grow despite rising real estate prices, interest rates and a high-base effect.
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