India Rental Property Market to Surpass Value of USD 42 Billion by 2030

India Rental Property Market is booming primarily due to government's increasing number of initiatives to develop rapidly expanding urban areas with growing population with migrant workers.

Report Ocean, a leading strategic consulting and market research firm, in its recent study, estimated India Rental Property Market size by value at USD 34.18 billion in 2023. During the forecast period between 2024 and 2030, Report Ocean expects India Rental Property Market size to expand at a CAGR of 9.75% reaching a value of USD 42.38 billion by 2030. The Rental Property Market in India is propelled by rapid urbanization, coupled with rising property prices and a growing preference for rental housing. The influx of migrants to major cities like Mumbai, Bangalore, and Hyderabad, combined with a limited supply of affordable housing, has boosted demand for rental properties. Government initiatives and technological advancements are further shaping the market by addressing affordability and operational challenges. As urbanization continues to reshape India's urban landscape, the rental market is poised for significant expansion.

Opportunity - Growing Demand for Smart and Green Buildings

India Rental Property Market is expected to register significant growth, driven by the increasing demand for smart and green buildings. The real estate sector's growing emphasis on sustainability has led to a surge in green commercial real estate, characterized by energy efficiency, resource conservation, and reduced carbon emissions. The integration of cutting-edge technologies, such as renewable energy sources, smart building systems, and recycled materials, enhances both the functionality and aesthetic appeal of these buildings. The shift toward eco-conscious design not only reduces operational costs but also improves occupant health and well-being. Cities like Delhi-NCR exemplify this trend, with green-certified office spaces projected to exceed 550 million sq ft by 2026, constituting 65% of the total office stock. This rise in demand, supported by certifications like LEED and GRIHA, signals a broader acceptance of sustainability among developers, investors, and tenants. As the market recognizes the long-term economic and health benefits of green buildings, lower maintenance costs, increased property values, and higher occupancy rates, developers are actively pursuing sustainable rental property development. This trend aligns with India's commitment to net-zero targets and is further accelerated by supportive government policies.

South India Leads India Rental Property Market

South India Rental Property Market is a dynamic and thriving sector, driven by robust demand, diverse housing options, and favorable market dynamics. Key cities like Bangalore, Chennai, Hyderabad, and Kochi are at the forefront of this growth, fueled by rapid urbanization, economic expansion, and thriving industries. Bangalore, India's Silicon Valley, leads the market with its strong tech industry and demand for rental housing near tech parks and vibrant neighborhoods. Chennai, with its diverse economy and population, offers a range of rental options from affordable housing to premium apartments. Hyderabad's growing IT and pharmaceutical sectors, coupled with infrastructure developments, have boosted its rental market. Kochi, a city known for its port activities and tourism, has seen a surge in demand for rental accommodations due to infrastructure improvements. Overall, South India's rental housing market is a testament to the region's economic vitality, demographic diversity, and infrastructure development, contributing significantly to India's evolving rental housing landscape.

Impact of Escalating Geopolitical Tensions on India Rental Property Market

India Rental Property Market may face significant challenges from intensifying geopolitical tensions across the world. Rising global uncertainties may prompt individuals and expatriates to seek safer, more stable environments, leading to increased demand for rental housing. The influx of international professionals, combined with potential supply chain disruptions and construction delays, could further strain the market, limiting housing supply and driving up rental costs.

Competitive Landscape

India Rental Property Market is highly fragmented, with numerous players serving the market. The key players dominating India Rental Property Market include NoBroker Property Management Services, DLF Ltd, Godrej Industries Ltd, Knight Frank India Pvt Ltd, Prestige Estates Project Ltd, Lodha Group, TATA Housing, L&T Realty Ltd, Oberoi Realty Ltd, and Brigade Group. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.

The report's in-depth analysis provides information about growth potential, upcoming trends, and India Rental Property Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Rental Property Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.