Salaried consumers driving rental real estate demand in Indian cities; suggests data trends by makaan.com

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Customers looking for rental accommodations in the Indian cities are mostly families belonging to the salaried section of our society, suggests data trends by makaan.com. An analysis on home renting trends by mProfile, a personalised service for landlords and tenants on makaan.com also reveals that tenants prefer to move in within a week of finding a rented place of their choice. The analysis is based on data available for key rental real estate markets across India in 2018.

What do tenants want?

Of all those who are looking for a rented house across Indian cities, over 69% are salaried employees while 16% are self-employed and 15% are students. Most tenants would like to move in within a week after selecting a house.

  • Occupation-wise breakup: When compared to the national average, the percentage of tenants from the salaried section of society is much higher in cities such as Bengaluru (over 81%), Hyderabad (over 77%) and Pune (over 76%). In Mumbai, about 75% of tenants are from the salaried segment while about 19% own businesses, the highest seen in any city in this category. In Kolkata, about 19% of people looking for rented homes are students, the highest in any city in this category.
  • Stay period: The national average reflects most tenants plan to live for at least a year in their new rented places. While about 35% of tenants say they would like to stay for about a year, over 24% say they plan to stay for two years. A little over 23% say they would want to stay for over three years. The remaining 18% say they plan to live in their rented accommodations for less than a year.
  • Prefer online platform: Today, tenants prefer online mediums to shortlist their homes before making physical site visits. This is evident from the fact that 71% of the people looking for a rented home on the site have not physically visited any properties. Interestingly, in Tier-II cities, the percentage is slightly higher than the national average, at over 72%.
  • He versus she: While over 66% of tenants looking for rented homes are men, 30% are women. In Bengaluru, over 36% of people looking for rented homes are women, the highest in any city. At about 69%, the percentage of men looking for rented property is the highest in India’s Tier-II cities.
  • Family versus bachelors/single: Half of the tenants plan to move in with one partner while 36% say they would be moving in with a family consisting of 3-4 members.  In Kolkata, about 57% of tenants would move-in along with one partner. In Chennai, 48% of people looking for rented homes plan to move-in with 3-4 members.
  • Food choices: Over half of those looking for rented homes are non-vegetarians while about 49% are vegetarians.

Commenting on the trends Ravi Bhushan, Chief Product and Technology Officer, PropTiger.comMakaan.com & Housing.com said, “Makaan.com has captured a major share in the market, and we are over one million listings-strong, far ahead of other businesses operating in this space. Now, our attempt is to offer our customers a unique search experience. mProfile is our distinctive offering and we understand that while an owner or tenant logs on to makaan.com, they are looking at the ease of arriving at their choicest property option.”

What do landlords want?

Most Indian landlords would welcome anyone and have no preference as such.

  • Family versus bachelors/single: The national average shows that over 61% of landlords have set no specific choice as to who they are more willing to rent their property to. Landlords in Chennai and Hyderabad are even more liberal on that front, with 68% in Chennai and 67% in Hyderabad saying they are open. Nationally, only over a third of them have stated a preference for families.
  • Occupation-wise breakup: Landlords do not have any preferences when letting out their property, with 81% landlord open to renting their homes to either salaried, self-employed or student tenants. Only 18% of the landlords surveyed stated their preference for salaried tenants.
  • Expected duration: While 67% landlords say they have no preference for the stay of their tenants, 21% say they expect them to stay for at least a year.
  • He versus she: While 45% of landlords are welcoming of all tenants irrespective of their gender, 32% prefer men as their future renters while 23% prefer women tenants. Landlords in Mumbai are more willing to rent their homes to women, with 38% saying they want women as tenants in comparison with 23% saying they prefer men as tenants.
  • Number of tenants: Majority of landlords want only 1-2 people to occupy their rented place, with 62% saying so nationally. While all landlords in Chennai say they prefer only 1-2 members to rent their accommodations, this percentage stands at 80% in Tier-II cities. Nationally, 24% landlords prefer to rent to a group consisting of more than four members.
  • Food choice: 93% of the landlords have set no preference when it comes to food choices of their tenants while about 5% want vegetarians strictly as their tenants.