With barely any land properties left in the western suburbs of Mumbai, residential apartments are being built through redevelopment of older properties. This is being observed in areas like Borivali, Kandivali, Malad, Khar, Bandra and Santacruz. The developer has to issue the property owners under redevelopment, housing another residence, resulting in increased demand for rental properties.
Majority property owners undergoing redevelopment like to lease residence in neighboring properties in order to maintain the same flow in their lives. This creates an excessive supply in the market. Usually a new property takes around 3 years to get constructed and the owners of those old properties get annual rental from the developer, till the new property is fully constructed. The developer also offers an annual increase in rental, until the old property is redeveloped and the new flat is handed over to the owner.
Source – Microsoft Start News