Housing Affordability Deteriorates: Indian Cities Grapple with Skyrocketing Rents

New Delhi: The ever-increasing rents in metropolitan cities have become a significant issue for residents, particularly those with low incomes. The influx of people migrating to cities for job opportunities and education has fueled the demand for housing, leading to escalating rental costs. In a recent survey conducted by NoBroker and Anarock, several cities in India have witnessed a substantial increase in rents this year.

Bengaluru, the capital of Karnataka, tops the list with the highest rent increase, driven by the migration of professionals and students. The city experienced a staggering rental hike of over 30% in 2023. Mumbai, the financial hub of India, also witnessed a significant increase in rents, with a rise of more than 30%.

Other cities that saw notable rent increases include Hyderabad and Pune. Rents in Delhi-NCR, Kolkata, and Chennai also witnessed growth, ranging from 9% to 14%. The survey revealed that approximately 7% of landlords have raised rents by over 30% this year, indicating the severity of the issue.

In Bengaluru, a significant 52% of homeowners participating in the survey rely solely on rental income. This dependence on rental earnings contributes to the rising rent phenomenon. Additionally, the increasing demand for property in the real estate sector, especially in Bengaluru, has further fueled the rental market.

The escalating rents pose significant challenges for low-income individuals and families. Many tenants face the dilemma of paying a substantial portion of their income on rent, leaving them with limited financial resources for other essential expenses. Arbitrary rent increases by landlords compound the problem, leading to distress and difficulties for tenants.

The government and policymakers must acknowledge the urgency of addressing the issue of rising rents in metropolitan cities. Measures such as regulating rent increases, providing subsidies or tax incentives for low-income tenants, and promoting affordable housing initiatives can help alleviate the burden faced by residents.

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