July 14, 2025: After witnessing a dramatic surge in 2023 and 2024—with rents rising over 20% year-on-year across several suburbs—Mumbai’s residential rental market is finally showing signs of cooling. According to property experts, rent increases have now moderated to 5–10% YoY in most micro-markets.
This slowdown follows a period of heightened demand caused by the end of work-from-home arrangements and a supply crunch post-pandemic. “The earlier spike in rents was an anomaly driven by sudden demand and limited inventory,” said Saurabh Garg, Co-founder and Chief Business Officer at NoBroker.
Much of the previous rental pressure stemmed from widespread redevelopment activity across Mumbai, particularly in the western suburbs. With hundreds of societies razed for reconstruction, displaced families moved into rental homes—further pushing demand. Developers typically pay for residents’ transit accommodation, exacerbating the crunch.
Now, experts say the pace of redevelopment has slowed. In suburbs like Dahisar, projects involving thousands of homes have stalled due to delays in obtaining environmental clearances. “In Dahisar alone, redevelopment for around 7,000 families is stuck. This is easing pressure on the rental market,” said Chintan Vasani, Managing Partner at Wisebiz Realty.
Rental growth in Andheri, Goregaon, Malad, and Borivali has normalised to match inflation. In Bandra, Khar and Santacruz, rents remain slightly elevated. For instance, Bandra rentals for a two-bedroom flat range between Rs 85,000 and Rs 1 lakh, while in Andheri West, they hover around Rs 55,000–Rs 70,000.
According to Gundeep Singh, CEO of Simplease, the post-pandemic supply cycle is finally bearing fruit. “Projects launched right after COVID-19 are now nearing completion, improving housing availability and stabilising rent growth.” Until Diwali, experts expect rents to remain steady, with no sharp hikes anticipated.
Source: Money Control
