Rental housing is in great demand nowadays but due to the low yield and lack of regulation, developers stayed away from it. However, after recognizing the ever-increasing demand in the market large real estate firms are starting to invest in the rental housing as an extension to their residential business. OYO and Nestaway are some of the leading companies which have totally captured the market from core only due to their investment in co-living platforms and shared accommodation.
Leading real estate developers those who are planning for residential housing and co-living startups
- Students and rental housing projects are being planned by leading Real estate builders such as Shapoorji Pallonji, whereas co-living startups are started by the Godrej properties, Lodha Group, and Mahindra life spaces.
After identifying the profitable value of the rental housing and co-living platforms, developers are also learning about the rental housing market. The idea behind such analysis in real-time deals by the developers is to step in the co-living market but without actively involving in it.
2. As a part of this initiative towards planning rental housing, a dedicated residential tower is planned as a joint venture of Dilip Thacker group and Shapoorji Pallonji. This is lead for student housing in the integrated township called Sarova in Mumbai’s Kandivali East.
3. The vice president of sales and marketing of SD Corp is also doing the primary research work for residential housing and meeting number of operators.
4. Brigade enterprises ltd, the leading Real estate developer of Bangalore is also looking for a proper opportunity to set up rental housing as per the executive director Pavitra Shankar. They are also planning to provide some value-added services to the tenants in order to make the housing even more reliable as well as feasible.
The reason for diminishing affordability of residential units
As per the real estate experts, tier II builders and personal homeowners are dominating the rental housing by renting their spaces, which in turn is increasing the number of vacant residential units in various areas. This also diminishes affordability to a great extent.
In renowned cities like Mumbai and Delhi, there is a desperate demand for rental houses and the number of vacant homes increased up to 71% since 2001. However, the decrease in the yields and lack of rules and regulation is keeping the traditional developers away from rental units. But according to the report of JLL India, the yield can be increased from 2.5 to 3 times in case of modern co-living and students accommodation setups.