88% of renters are looking for a property within the city limits as office work resumes

The first half of 2022 was very promising, especially for the rental segment. Real estate as a whole has shown good resilience during the pandemic, with renters wanting to either move to larger homes or own one, as noted in NoBroker’s 2021 Annual Real Estate Report.

NoBroker’s 2022 Half-Year Report reveals how the industry has evolved over the past six months, with professionals flocking to their work cities in droves.

About 71% of people who responded to the survey said they have already moved to their work city, while 54% are looking to move either within the city or to their work city. This explains the real estate crisis that cities such as Bangalore, Mumbai and Pune are facing.

Stock shortages are one of the main reasons for rent inflation, which exceeds 12% in all cities. 68% of respondents also mentioned that their rental budget has increased! In recent years, rents have bottomed out, with many landlords reducing their rent, as noted in last year’s report. The past few months have however been difficult for tenants who now have to pay a much higher price for the same properties that were available for much less rent during Covid. Nearly 85% of tenants said now that prices have gone up, the maximum weight has been felt by tenants in Bangalore.

Delivery of projects was delayed as construction had to be halted due to the pandemic. Over the past two years, while many companies have increased their workforces, project construction has not kept pace. Many of these employees (who were working from home at the time of recruitment) are looking to relocate to work cities. But there is a mismatch between demand and supply. No less than 78% of people said they had difficulty finding a property of their choice.

Commenting on the same, Saurabh Garg, Co-Founder and Chief Commercial Officer of Nobroker, said, “Many trends that had emerged during and because of Covid are now being reversed. For example, people are again looking to rent property in the city to be close to where they work. Stock shortages are one of the main reasons for rent inflation, which exceeds 12% in all cities. 85% of respondents believe that rents have increased. In recent years, rents have bottomed out, with many landlords reducing their rent to retain tenants. The past few months have however been difficult for tenants who now have to pay a much higher price for the same properties that were available for much less rent during Covid. However, this sudden surge in rent inflation should subside over the next few months. A continuing trend is the demand from buyers to own their dream home. »

Having a home that could triple as a home, office, and recreation area has become more important during the pandemic, regardless of how far away it is from your office. However, now that the waves of Covid are receding, over 88% of renters mentioned that they were looking for a property within the city limits.

Buying a property is a concern for 72% of renters because interest rates are very low. Interest rates have increased somewhat, but are still well below pre-pandemic levels. Interestingly, the reasons given for this are that EMIs are more manageable, it is difficult to find a good property to rent and prices are expected to skyrocket. Nearly 45% of people believe that prices will rise further and therefore this is the best time to buy.

NoBroker experienced faster closings for rentals as well as buy/sell transactions on the platform. Most urban cities are experiencing housing shortages due to massive reverse migration and low inventory. The difficulties could persist for a few more months, after which the situation should calm down.

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