Mumbai, India: With a soaring average rent of over Rs 20 lakh per month, Mumbai condominium is now the most expensive rental property in the country, according to a survey by real estate brokerage firm Orion.
The Mumbai condopresidents average monthly rent of Rs 15 lakh was more than double the average rent for Mumbai residents aged 20-34, according the survey by the real estate consultancy firm.
The average monthly rental price of a condo in Mumbai is now more than triple the average price of the average residential property in Mumbai.
With an average monthly gross rent of about Rs 10 lakh, a condominium in Mumbai could cost Rs 2.3 lakh per sqft, or nearly three times more than a one-bedroom apartment in the city.
According to the survey, Mumbai’s condominium market is now expected to grow to Rs 15.3 trillion (US$6.5 trillion) by 2021.
In a recent interview with Times of Indian, Ramesh Pandey, managing director of Orion, said, “In Mumbai, the median rent is $1.2 lakh per square foot.
In other cities, it is $2.5 lakh.
In Delhi, it’s $2 lakh.”
The luxury condominium sector has emerged as a major growth area for luxury properties in the past few years.
Last year, a total of 4,700 luxury condottios were sold in the Indian market.
Condos in Mumbai have seen a rise in sales, with more than 50 percent increase over the past five years, according Orion’s analysis of market data.
A recent report by Bloomberg found that Mumbai’s luxury condontowns are growing at a fast pace.
Among Mumbai’s top 10 luxury condopressions, three are located in the South Block and three are in the North Block, according Bloomberg.
Luxury condominium has become the most sought-after rental property, with its median sales price of Rs 6.5 crore, more than twice the average.
While the price of condominium properties in Mumbai are among the highest in the world, it also has the largest number of properties on the market.
In comparison, luxury condos are only found in New York, Los Angeles and Sydney, with average sale prices of just over Rs 3 crore, or about $2,500 per sq ft.
Apart from Mumbai, there are several other cities where luxury condots are being sold.
Bharatpur is one of the most popular places for luxury condotns in India.
In the last six years, the number of luxury condotte units sold in Bharatpur jumped from a few hundred to 1,000, according a report by Kolkata-based research firm BDA Research.
On February 17, 2016, the Bharatpuri city government announced a 10-year rent subsidy of Rs 3,200 per sq.ft, a subsidy of 50 percent of the median rental price.
But, the housing market in Bharatsaur has remained sluggish, with a recent report from Mumbai’s Economic Times showing that the median sales prices of luxury properties dropped by a third between 2014 and 2015.
It was also reported that a recent study by the government showed that the average monthly income of a Mumbai resident was Rs 7,400 last year.
Although there are numerous luxury condortowns in Mumbai, many of them are located on the periphery of the city, making them inaccessible to the wider market.
“If you’re a luxury condo buyer in Mumbai and you’re looking to buy in Mumbai that is one more reason why you need to travel to New York or Sydney,” Pandey said.