Mumbai has seen an increase in coworking average monthly rentals over the last four years, at 27%, followed by Gurgaon at 19%, per a recent MyHQ by Anarock report.
According to a recent MyHQ by Anarock report, Mumbai has seen an average monthly rental growth for coworking spaces over the past four years (27%), followed by Gurgaon (19%).
The report encompasses six towns: Bengaluru, Delhi, Mumbai, Gurgaon, and Noida.
In Mumbai, the average monthly rental cost for a flex space seat was Rs 15,900 in FY 2024 compared to Rs 12,500 in FY 2020.
Gurgaon saw a 19% increase in that period, going from roughly Rs 8,500 per month per seat in FY2020 to roughly Rs 10,100 per month per seat in FY2024. Rentals for Delhi’s flexible workspace increased by 18% between FY2020 and FY2024, going from Rs 10,000 to roughly Rs 11,800 per space per month.
The average monthly rent for flexible spaces in Bengaluru increased from Rs 7,800 per seat in FY2020 to Rs 9,000 per seat in FY2024, representing a 15% increase. According to the report, the average monthly rental price of flex spaces in Noida increased by 14% over the previous four years, from Rs 6,500 per seat in FY2020 to Rs 7,400 per seat in FY2024.
“In recent years, the Asia-Pacific area has become a significant market for coworking spaces, and demand is rising quickly. Japan, China, India, and Hong Kong are a few of the major cities that are experiencing rapid expansion. According to Utkarsh Kawatra, Senior Director of myHQ by ANAROCK,” India, as a hotbed for startups across various sectors and industries, is witnessing a steady demand for flexible, economical workspaces.”
In the current fiscal year, coworking accounted for 18% of the office supply in the top seven cities’ office leasing market. A report by MyHQ by Anarock estimates that the flexible office real estate market will grow from 55 million square feet to 100 million square feet by 2030.
Financial support for the coworking space has also been encouraging, with more funding coming in after COVID-19 than before.
An average coworking space of 20,000 square feet can fetch an internal rate of return of 40-70%. According to the report, up to 70% of businesses use a hybrid work style.
According to two out of three industry experts, by 2030, coworking spaces will become more in demand than traditional office spaces. Opening coworking spaces is another move by hotels and food and beverage establishments to increase revenue from their daytime unsold inventory.
Experts claim there has been a recent decline in primary sales in the Mumbai real estate market. Additionally, due to an excess of inventory brought on by the rise in launches over the previous two years, developers have been pushing sales through these various initiatives.
In the Mumbai real estate market and its environs, more and more builders are reintroducing “buy now, pay later” schemes, which let buyers pay only 10 or 20 percent of the total price up front and the remaining amount upon possession. These programs, which became popular during the 2015-2019 real estate slump, are designed to increase buyer confidence.
Diminished demand?
The Mumbai real estate market has seen a spike in launches and a rise in residential property sales over the past four years.
The Maharashtra government’s announcement in January 2021, waiving half of the permission fees developers had to pay, is credited with this growth. Several developers have had flexible payment options or subsidy programs during the last six months.
According to experts, this may be due to a decline in primary market real estate sales. Due to excess inventory from the increase in launches over the previous two years, developers have had to offer such schemes to boost sales.
In the past few months, developers including Wadhwa, Runwal, Ambit, Raymond Realtors, Microtech Developers (Lodha), Keystone Realtors (Rustomjee Group), and Wadhwa have all introduced flexi-payment options.
For instance, Lodha offers a 255 upfront payment option and a 75% payment option upon receipt of the occupation certificate (OC) for its Thane project. Like this, the Raymond group offers the option to pay 20% in advance and nothing at all until January 2025 in Thane. In November 2023, just in time for Diwali, several projects from the Rustomjee group had flexible payment options.
Directly from the horse’s mouth
Reintroducing the 20:80 subvention scheme is a calculated move to draw in buyers and speed up inventory offtake, which will increase cash flow and lower carrying costs, according to Rajendra Sharma, Chairman and MD of Ambit Realtors and Developers.
As a result, according to Navin Makhija, managing director of the company, the Wadhwa Group is providing subvention in projects where the OC is due in three to six months.
Experts in real estate also credit increased competition for the revival of developer subsidy schemes in the Mumbai market.
“Developers are forced to provide incentives to stand out and sustain sales momentum due to a high volume of launches. The real estate consultancy firm JLL India’s Ritesh Mehta, Senior Director and Head of West & North, Residential Services & Developer Initiatives, stated that the flexibility of staggered payments “aligns with developers’ robust cash flows post-Covid-19.”
Listed companies comply with investor requests to release their pre-sales figures every quarter. To create cash flows, developers must rely on banks or find innovative ways to sell their property for less money. First-time homebuyer promises can be used as collateral by developers to secure bank loans, according to RK Mumbai Realtors’ Director Ravi Kewalramani.
More launches
The number of units introduced within Mumbai city limits climbed from 25,404 in 2020 to 52,771 in 2023, according to the Maharashtra Real Estate Regulatory Authority (MahaRERA).
Urban real estate markets have started to prioritize apartments with balconies. The demand for balcony space is constantly increasing, especially in a metropolis like Mumbai, to the degree that it is now necessary. Balconies are a common feature of apartments. The purpose of flats with balconies is to give residents access to a private standard of living and property value.
Some people might hesitate to purchase an apartment building’s top floor, while others may want to live there exclusively. The top floor differs from the lower ones due to how living there feels. It provides fresh air and breathtaking views. The most amount of sunlight strikes it. Additionally, if you are on the top floor, you won’t have to put up with the noise of moving furniture or kids playing above you! Some people choose to stay at the top because they value these advantages.
However, the top floor’s primary drawback is that it is considerably hotter than the other floors. People face many challenges residing on the top floor with private terraces and balconies in cities with extreme summer heat. Also, it is possible to feel water leaks from the roof on the top floors, but builders frequently ignore this. It is due to improper ventilation on the upper floors.
Numerous studies have demonstrated that a residence with a private terrace with a balcony has many advantages and disadvantages. If you prefer views, you will enjoy living on the higher floor. You can see everything clearly if you look at it from above. You can get away from the bustle of the city while still enjoying plenty of daylight and a pleasant breeze.
What is a private terrace?
A terrace is an open space that may connect to or separate from a building. The entrances to a balcony, however, can differ. Most places have terraces where guests can go outside the hotel and get some fresh air. If the dimensions are correct in the new location, it will be possible to relocate the furniture on the terrace.
Outside, you might enjoy drinking coffee or tea while studying for tests. Anytime during the day, you are welcome to unwind and take a nap there. Regarding public open spaces, your terrace offers privacy while still being outside.
Benefits of purchasing a Private Terrace Flat in Mumbai with a Balcony
It allows one to feel more like a part of nature.
You can unwind on a private terrace in a healthier and cozier environment. You can also create a lovely terrace garden to enjoy the outdoors. It will boost your immunity and be advantageous for you. If you have a sizable balcony with plants, your home will be better ventilated and experience a lower summer temperature.
A reviving workplace
Working from the same spot while seated in a living room or bedroom can get boring. It might limit your capacity for originality and creativity. It is especially valid for your lifestyle of working from home or for intense study sessions. You could take advantage of the fresh air by using the natural surroundings close to your house.
A spot to relax and unwind
On the terrace, you might enjoy reading your favorite book or sipping tea in the morning. At any time of the day, you can relax and nap peacefully. Unlike public parks and gardens, your terrace offers privacy while still being outside.
Gardening space
The increased oxygen flow caused by plants contributes to the air’s purification. On your terrace, you can grow visually appealing flowers and indoor plants to add aesthetic value to your house. Outside, you can also grow fruits, herbs, and vegetables.
Pet-friendly area
Experts say an outdoor space is essential for your pets’ happiness and health. Taking your pets for daily walks or runs around your neighborhood, a private terrace may be a great and safe place to get some exercise and fresh air. With less anxiety and hyperactivity, the fresh air may vastly enhance their health. On the terrace, you might erect a small playpen for your pet.
Heavy deposits, also called zero-rental flats, are becoming popular in the real estate market. The heavy deposit is an agreement between the owner and tenants where the owner provides the expected property to the tenant in exchange for a hefty security deposit for a period of time.
These days, a growing trend in Mumbai that is spreading to Vasi-Virar, Mira Road, and other city areas is heavy deposits or zero rental flats or apartments.
How Heavy Deposit Varies from General Renting?
Those who rent properties typically pay both the flat security deposit and their rent monthly. Residents of the heavy-deposit apartments do not make monthly rents or security deposits. Instead, they pay a large sum to the owner as a security deposit for the property based on the property’s location during the tenancy period.
Furthermore, the owner will return the tenant’s security deposit when the tenancy finishes.
If the rental agreement allows it, the landlord may withhold payment in the event of property damage or unpaid utility bills.
Heavy Deposit System In Mumbai
The zero-rent option is becoming more and more appealing to Mumbai renters, particularly millennials with transferable employment. To be clear, a rental flat plan permits tenants to reside in an apartment during their rental period without having to pay rent.
According to information provided by Mr. Tauqeer Hashmi, the owner of Maharastra Properties In Mumbai, almost a third of people who seek rental homes are prepared to put down a sizable deposit in order to reduce their monthly rent costs. It usually costs 100 times what the rent is per month. for a flat being offered at Rs.10,000 per month, for instance, a sizable deposit of Rs. 10 Lakhs would be required.
Advantages of Heavy Deposit Flat in Mumbai
The zero-rental flat system is beneficial for both the landlords and the tenants. They provide great opportunities for renters to lower their monthly rent costs, particularly in areas with excessively high rents like Mumbai. If the flat is maintained the tenant gets their whole security deposit back.
On the other hand, the Owner gets a huge amount of money at one time which can be invested in other ways. In the normal renting process, paying electricity bills, and water bills can be a bit problematic, especially in the last month of the tenancy. Also, if every tenant vacates the property, the landlord must spend a lot of money on repairs since new renters demand that the property get little maintenance. A deposit of Rs 30,000 or 40,000 won’t be helpful for the maintenance. At these times the owner can use the security deposits given by the tenants.
For quite a good time the trend of heavy deposits or zero-rental is there in Mumbai as it is a win-win system for both the rentals as well the owner. Additionally, the owner already has a hefty amount on his/her hand, they can use it somewhere else, and can invest it in the real estate sector only by investing the amount to buy a new property. In Mumbai, this system is well known and with the passing of time, it is already spreading the other regions of Mumbai, like Mulund, Chandivali, Bandra, Goregaon, Malad, and Andheri East.
Tips to Rent Heavy Deposit Flat In Mumbai
In a city like Mumbai, it’s simple to find heavy-deposit apartments or zero apartments, but choosing one can be challenging. To help you all find your ideal home, here are some tips.
The first step is research, which is simple and clear but important. Researching every neighborhood in the area will help you to understand and identify the best place to live with all the amenities you require.
The next step is to determine which amenities, such as an air conditioner, a fully equipped kitchen, and a house that includes water and electricity as part of the rent, you need in your flat.
Before signing a lease, make sure to inspect the property to determine its quality. Checking to see if the amenities are operating properly will be a smart idea. Before making a choice, look through the security features like locks and cameras.
Make as many contacts with agents as possible, and keep a list of those who can give you a rough notion of how to achieve your goals.
While checking on the heavy deposit flat agents in Mumbai, ask about the past clients of the property you are interested in, and ask about the society and the locality, Depending on the time you can also meet the agent to get a rough idea of the area you are interested in.
Ask the heavy deposit flat agents in Mumbai about the previous tenants of the home you are interested in, as well as about the neighborhood and society. You may also meet the agent to get a general sense of the neighborhood you are interested in.
It can take some time to find the ideal heavy deposit flat in Mumbai, but with little preparation and research, it is possible! You will find your dream home quickly if you use the advice in this article.
Documents Required to Rent A Heavy Deposit Flat
Don’t forget to have this paperwork available for the next step once your extensive study has led you to find your perfect heavy deposit flat in Mumbai.
Tenant Identification: First thing you need is your identification cards which can be any of these Voter ID cards. Aadhar card, PAN card, or your driver’s license.
Rental Agreement: It’s essential to specify in the rental agreement what costs will be paid and by when. To avoid paying taxes or stamp duty, a would normally be for 11 months.
No Objection Certificate (NOC): This is a letter of consent from the landlord confirming that they do not object to you renting their property for a heavy deposit flat in Mumbai. Confirming that both parties concur on every aspect of the rental agreement, serves to safeguard both parties from being taken advantage of.
Security Deposit Receipt: These are essential documents that might assist avoid disagreements later on about security deposits. The Receipts should clearly state how much money is being deposited and when it can, if necessary, be retrieved by either party.
Hence, before signing up for a heavy deposit flat in Mumbai, make sure you have all the necessary documents ready! Afterward, you’ll appreciate yourself.
A Final Piece Of Advice
A final piece of advice. Make sure you familiarize yourself with everything the city has to offer before accepting a heavy deposit flat in Mumbai. Several structures in the city have different features that increase their appeal and worth, such as particular artwork, specialized furniture, or exclusive services.
Conduct thorough research on the area you are moving to, including information on maintenance services and amenities like gardens, swimming pools, gyms, and any specialized security measures.
In its quest to promote real estate and promote the construction industry, the government of Maha Vikas Aghadi (MVA) has extended the period of stamp duty exemption for investors who sell their property within one year of purchase to take advantage of this exemption.
The corresponding bill was approved by the state legislature on Wednesday. However, investors may be exempt from stamp duty even in the event of a resale completed within three years of the purchase of their property. On such deals, stamp duty is paid only on the difference in the price of the property and not on the full amount.
It should be noted that according to the RERA Act, which enters into force in the state on 1 May 2017. It generally takes at least three years to complete a project within the conditions and rules of RERA Act.
In the current scenario, if an investor buys an apartment and wants to resell it within a year, a certain exemption from stamp duty is granted by charging only the price difference. The bill however states that the annual maturity has not allowed for a large profit from such a trade since the pandemic. The number of resale making such a profit is very negligible.
Encourages more investments and sale-purchase deals
The bill is based on the need to stimulate business in connection with the rapid development of the global economy and the post-pandemic situation.
If the annual period of validity of the permit is extended to three years, this privilege will used by a larger number of investors, according to the wording of the purpose of the bill. This decision would not only improve investment volume. But also speed up the signing of sales contracts, which would ultimately benefit the state’s large revenue from stamp duty.
Revenue minister Balasaheb Thorat said, various reports from the real estate industry point to the losses they have suffered, especially in the post-COVID period. “This decision will encourage investors to enter into real estate transactions and in turn help the government generate revenue and create jobs.”
Builders can misuse this service
Experts from the cooperative sector and stamp duty sector also shared their opinion and said, “This could be a step towards pleasing builders and their investors. It is very possible that builders are financing politicians. We all know that the election is just around the corner. Hence there is a possibility that funds will be given to political parties.”
Vinod Sampat, president of the Registration Fee & Stamp Duty Payers Association said, “Builders also have the opportunity to abuse this service by selling apartments to their employees/assistants. As well as taking out home loans and using these funds for personal needs. Therefore, they can receive funds at a very low price. We all know that housing mortgage rates are much lower.
Home prices in Mumbai rose in the last quarter. Meanwhile the period was noted for lower home sales as well.
MUMBAI: Home sales are down. The real estate market is sluggish. Yet the home prices are not affected by them. It seems that the home prices are not aware of the weak home sales. Continue reading →
Connaught Place in New Delhi and Bandra-Kurla Complex(BKC)in Mumbai have been counted among the top and most expensive office locations in the Asia-Pacific region.
Connaught Place: As offices have become hotter here, the number of street-marketers may increase.
According to Cushman & Wakefield’s annual survey titled ‘Office Space Across The World 2013′, Connaught Place in New Delhi and Bandra-Kurla Complex (BKC) in Mumbai are included among the most expensive office locations in the Asia-Pacific region. Surprisingly the list dropped Nariman Point from the top 10 list.
As per the global real estate consultant’s report, Connaught Place; where the yearly cost of office space per sq. ft. was $162, stood second in the top 10 list of the region and fourth in the worldwide list. While with $82 per sq. ft. of yearly cost, BKC ranked eighth in the list.
Meanwhile Nariman Point which was considered as one of the most expensive office locations in India was not included in the top 10 list.
Connaught Place emerged as the fourth most expensive office locations in the world. This is mainly due to the shortage of office space in the area, said Mr. Sanjay Dutt, executive MD, C&W. Continue reading →
