The trend of renting residential properties over owning one is growing steadily. In fact, there was a 13.5% increase in pan-India rental demand for houses for rent in-between 2021 and 2022 (MagicBricks). This drift footed firmly due to a post-pandemic real estate boom across the country last year, where now rental housing is more accessible and not just flexible.

The changing socio-economic environment is a prominent factor in this shift, along with the evolving mindset of young and middle-aged Indians. There are certain challenges impeding the growth of rental culture, but the benefits outweigh the costs. Let’s analyze the Indian rental sphere better to understand why Indians, particularly young ones, prefer houses for rent and forgo the security of an owned property.

Factors Affecting House Rentals

The following factors are contributing actively to the growing popularity of Indians searching through houses for rent and not houses for sale.

• Cost: Anarock Property Consultants reveal that the average price-to-income ratio in major Indian cities is around 61%.
  

• Career Constraints: Most millennials have frequent travel plans and career path choices that often involve changing residencies in less than a decade. The white-collared working class often travels 35 days a year (Expedia). They tend to change jobs in 5 years as well (Pew Research Center).
  

• Urbanization: Industrial zones like Gurugram and Noida are highly urbanized. According to the Economic Survey 2020-21, around 34% of India's population is projected to reside in urban areas by 2025.
  

• Societal Attitude: Both homeownership and renting influence how an individual is viewed socially, culturally, and economically.

Why Indians Prefer Houses for Rent

Driven by the factors above, Indians prefer renting rather than buying a home primarily due to these benefits.

• Affordability: A lot of young Indians find houses for rent more affordable than buying a property, especially in metropolitans where property prices are sky-high. An average 3BHK Rental in Bengaluru can cost between ₹25,000 and ₹50,000.
  
  

• Flexibility: Renting enables the freedom to change homes easily and avoid the hassle of property management. A survey by Nestaway Technologies found that 72% of millennials prefer renting due to the flexibility it offers.
  
  

• Ease of Accommodation: Non-resident workers find it difficult to buy a house. Renting provides a practical solution for these individuals, allowing them to find accommodation quickly without the immediate need for property ownership.
  
  

• Change in Perspective: There has been a shift in societal attitudes towards choosing in India. Renting is now being recognized as a viable and convenient housing option due to rising property prices, better choices, and entrepreneurial insights.

Challenges Faced by Renters

There are several challenges faced by Indians checking through houses for rent. Most of them have to do with pricing and security.

• Renting a home in India can be quite costly, especially in major cities. The high rental prices make it tough for many people to find affordable housing options. To put that into perspective, the cost of an average 3BHK in Bengaluru can go up to ₹1.5 crores.
  
  

• The rental market in India often lacks transparency, making it difficult for both tenants and landlords to navigate. It can be a challenge to find good houses for rent and reliable tenants due to the lack of clear information and processes.
  
  

• Many people in India are unaware of the advantages of getting a property rental. There is a common misconception that renting is more expensive or less secure compared to buying a house. This lack of awareness prevents them from considering lucrative houses for rent.
  
  

• The rental market in India is still developing. There is a limited number of available houses for rent, and the quality can vary.
  
  

• Tenants in India often face uncertainties regarding the security of their tenure. Landlords can evict tenants with short notice, making it difficult for renters to find stability and security.

With time, these challenges can be overcome with a better framework of rental laws, better societal attitudes, and ease of finding opportune houses for rent. The availability of apps, websites, and local search services like Justdial will focus efforts and create a conducive environment for renters, ensuring houses for rent are worth a steal.