In a new report, data company Mintel revealed that a house rental market is expected to reach a new all-time high of $1.3 billion in 2017, up from $1 billion in 2016.
The report is based on data gathered from the Real Estate Board of India (REBIA), the country’s housing ministry.
In a bid to make the figures as relevant as possible, Mintel has provided a summary of the data.
According to the report, house rental growth is expected for the next five years to reach an all- time high of almost 4 million units.
In 2019, a further 4.2 million units will be added to the total, while in 2020, the number of new units to be built is estimated at 6.5 million.
As a result, house rents will be on a steep climb from 2017 levels.
According a report in Business Standard, the country recorded an overall increase in house prices in the first quarter of 2019 of 15 per cent to Rs 11,400 crore.
However, in the same period, the average annual rent of a property in the capital rose by 7.8 per cent, from Rs 1,634.60 to Rs 1.837 crore.
“The report shows that the demand for rental properties is increasing rapidly, which is in stark contrast to the stagnant rental markets in the past few years,” said a senior economist at Mintel.
According TOI, a survey conducted by the housing ministry in March showed that house rental in the city of Delhi grew at a whopping 4.5 per cent in 2019-2020.
While the figures showed a slow start to the year, the figures also indicated that the city was seeing a surge in the demand of rentals.
According the report from Mintel, the annual rental growth in the last two years was 2.3 per cent and 4.8 percent, respectively.
The demand for housing is also growing rapidly.
According on the report published in Business Review, the rental market in Delhi is projected to increase at a staggering 12.6 per cent during the next four years.
“House prices are rising at a very fast pace, and the rental supply is on a trajectory to surpass the number demand for,” the report states.