Got a job in Mumbai? Here's a look at a few rental options available near the financial capital under ₹25000

In 2020, a monthly rent of ₹25,000 could get you a 2 BHK in Mumbai’s suburbs but today getting a 1 BHK for the same amount may be a challenge, say brokers

When Shardda Kansal moved to Mumbai in 2019 and was looking for rental accommodation under ₹25,000 per month, there were a dime a dozen 2 BHK options available to her in the suburbs. Today, her friend Mannat Puri, who recently moved to the financial city to take up a job with an advertising firm, is struggling to find a 1BHK flat for the same amount.

Rentals in Mumbai's real estate market have hit the roof largely because several old buildings in the city are currently under redevelopment. (Picture for representational purposes only) (Satyabrata Tripathi / HT Photo)

Property consultants say that Puri is facing this challenge because monthly rentals in Mumbai have hit the roof largely because several old buildings in the city are currently under redevelopment. In most cases, the developer of the society has to provide the owners of the property under redevelopment alternative accommodation in another building, preferably in the same locality, leading to an increase in demand for rental properties.

Real estate experts point out that the growth in rentals seems to have tapered off in 2024 as the pace of redevelopment has slowed down in the suburbs and the focus has now shifted to South Mumbai.

In Dahisar, the northernmost tip of Mumbai that takes about 60 to 90 minutes from the heart of the financial capital, a furnished 2 BHK apartment measuring around 700-800 sq ft may be available for ₹25,000.

"I showed a furnished 2 BHK apartment in December 2020 to my clients for ₹25,000 in a building that was almost 15 years old. After the second wave of Covid-19 subsided, there was a boom in redevelopment of old buildings. The same flat is today available for ₹40,000 to 45,000," said Vikram Joshi, a real estate consultant from Mumbai's western suburbs.

'A compact 1 BHK apartment in a brand new building is available for ₹30,000 to ₹35,000 in Dahisar and Borivali (about an hour by road and rail to Bandra Kurla Complex (BKC)). The per month rent in 2021 for these apartments was between ₹17,000 to ₹20,000. However, one can rent a 1 BHK apartment under ₹25,000 per month in Dahisar, Borivali, Mulund (an hour from BKC), that are older than 25 years and above," said Joshi.

For those with a budget of less than ₹20,000 or, say, between ₹10,000 and ₹20,000, could look at renting 1 BHK apartments outside the city limits in micro-markets like Thane, Mira Road, Bhayander, Kalyan or Dombivali. However, one should be ready for a daily commute of two to three hours if one's workplace is in Central Mumbai or BKC, said local brokers.

Are rentals in the city starting to cool off?

A 3 BHK in a premium building in the Andheri area of Mumbai was available for a monthly rent of ₹77,000 in 2021, which went up to ₹1.14 lakh in 2023 as redevelopment of old buildings in Mumbai picked up pace. Rents are currently hovering around ₹1.18 lakh per month due to increase in supply of redeveloped homes in the city.

"Rental growth across premium gated societies in Mumbai seems to have cooled down to 5-9% in 2024 after a growth of almost 50-60% in the last two years between 2021-23," according to data shared by Zapkey.com research in June 2024.

This trend has been observed in areas like Dahisar, Borivali , Kandivali, Malad, Goregaon, Mulund, Bhandup suburban localities that are almost an hour away from BKC by train and road.

"Many buildings that went under redevelopment will be handed over possession in 2025. This will increase supply in the rental market. If there are not too many tenants, there will be an excessive supply of rental units in the market and monthly rents will start to cool off or correct marginally. Having said that, this trend is not yet visible in the Mumbai market as there is tremendous scope for redevelopment within the city,” said Parag Kothari, another property consultant from Mumbai's western suburbs.

Rental transactions in the Mumbai real estate market

As many as 1.90 lakh rental agreements, also known as leave and license agreements, were registered in Mumbai’s real estate market in the first six months of 2024 - a 13% increase from 1.67 lakh rent agreements registered during the same period in 2023.

These were registered across all segments - residential, commercial and retail, according to the data shared by the Maharashtra Inspector General of Registration (IGR). In 2022, 1.55 lakh rental agreements were registered during the same period.

In the entire 2022, 3.06 lakh rental agreements were registered in Mumbai that went up to 3.33 lakh in 2023.