The residential rental market in Mumbai’s western suburbs has witnessed a sharp increase, driven by rising demand and limited supply of quality homes, according to data shared by Zapkey.com research. Popular localities such as Andheri, Goregaon, Malad, and Borivali have seen rental prices surge over the past year, making it one of the hottest real estate markets in the city.
"Rental growth across premium gated societies in Mumbai has cooled down to 5-9% in 2024 after a growth of almost 50-60% in the last two years between 2021-23," the data stated.
Industry Experts Weigh In On The Growing Trend
Several industry experts have weighed in on this growing trend, citing various factors such as the influx of professionals, the city's expanding infrastructure, and the development of premium housing projects. Developers feel this shift is reshaping Mumbai's rental landscape, creating opportunities for both developers and investors.
.png)
Commenting on the trend, Shraddha Kedia-Agarwal, Director, Transcon Developers, noted, “The rise in rental prices in Mumbai’s western suburbs is a direct reflection of the demand for modern, well-equipped homes. The area's connectivity, proximity to commercial hubs, and lifestyle amenities has made it an attractive choice for both locals and expatriates."
A 3 BHK apartment in Malad East along the Western Express Highway near the Metro station which was available on rent for Rs 55,000 per month in 2021, went up to Rs 85,000 per month in 2023, while in 2024 the rentals were at Rs 87,000 per month, according to the data.
Statement Of Umesh Jandial, Chief Business Officer, Omkar Realtors & Developers
Speaking from the demand perspective, Umesh Jandial, Chief Business Officer, Omkar Realtors & Developers said, “We are observing increased demand from tenants looking for premium rental options in key western suburb localities. With the improved metro connectivity and infrastructure, this trend is likely to sustain.”
Similarly, a 2 BHK apartment in a premium building of Borivali was available for a monthly rent of Rs 39,000 in 2021 and went up to Rs 58,000 in 2023. However, in 2024, that same building has 2 BHK apartments being offered for a monthly rent of Rs 65,000.
Statement Of Dhiraj Mandal, Director Of Mumbai Realtors
Dhiraj Mandal, Director of Mumbai Realtors opined, "After the Development Control and Promotion Regulation (DCPR), 2034 was sanctioned by the Government of Maharashtra on May 8, 2018, the redevelopment on narrow roads became viable, resulting in thousands of old and dilapidated societies going for redevelopment in the Andheri to Borivali belt where demand for housing has always been good due to available social infrastructure, which resulted on a continuous demand for rental flats from displaced members on a regular basis creating a huge shortfall in rental housing thereby pushing rentals up by 30 to 50%. This problem shall persist for another 5-10 years as a large number of societies are on advanced stages of negotiations with developers."
The upward trend in rentals is expected to continue, with experts forecasting further increase as new infrastructure projects are nearing completion.
