Short-Term Rentals in Mumbai: A Premium Affair
Renting a property in Mumbai for a short duration of 2-6 months is possible, but be prepared to pay a premium, say real estate brokers.
Mumbai Real EstateShort Term RentalsProperty LeasingLeave And License AgreementPremium RentalsReal EstateJul 10, 2024
In Mumbai, property owners sign a leave and license agreement with the tenants, which attracts a stamp duty that depends on the monthly rental and deposit charged. On average, around 30,000 leave and license agreements are signed and registered with the registry office of the Maharashtra government every month.
Brokers explain that property owners who rent their apartments for a shorter period charge higher rentals because the supply of such properties is limited. For instance, a property that can fetch a monthly rent of ₹500 per sq ft if leased for five years can get ₹600 or ₹700 per month if it is leased for six months. This is because the supply of properties that can be leased for a shorter duration is less than properties available in the market for a longer duration.
Recently, a commercial space of almost 5830 sq ft was leased to IMC India Securities Pvt Ltd for ₹700 per sq ft per month in BKC, Mumbai. While the rent charged seems high, brokers argue that considering the rental period is only six months, it is a premium charge.
information Mumbai, being the financial capital of India, has a thriving real estate market. The city attracts businesses, expats, and individuals who often require short-term rentals. However, the scarcity of properties available for short-term leases creates a premium market.
Propstack is a real estate data and analytics platform that provides insights into the Indian real estate market. Agni Commex LLP is a real estate company that offers commercial and residential spaces for rent and sale.
Frequently Asked Questions
Is it possible to rent a property in Mumbai for a short duration?
Yes, it is possible to rent a property in Mumbai for a short duration of 2-6 months, but be prepared to pay a premium.
Why do property owners charge a premium for short-term rentals?
Property owners charge a premium for short-term rentals because the supply of properties available for a shorter duration is less than properties available in the market for a longer duration.
What is the usual rent charged for properties in BKC, Mumbai?
The usual rent charged for properties in BKC, Mumbai is around ₹500 to 550 per sq ft per month.
What is a leave and license agreement?
A leave and license agreement is a contract between the property owner and the tenant that allows the tenant to occupy the property for a specific period.
How many leave and license agreements are signed and registered in Mumbai every month?
Around 30,000 leave and license agreements are signed and registered with the registry office of the Maharashtra government every month.
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