2025: The Rise of Rental Property in Indian Realty.
By Shravan Gupta.
India’s housing landscape is undergoing a profound transformation. People are opting to rent rather than purchase homes, signalling a shift in consumer behaviour and investment strategy. This evolution has created a robust and thriving rental market, offering new opportunities for small landlords and investors alike.
A New Era for Landlords.
The current rental climate presents significant advantages for property owners. Shravan Gupta, MGF Group, notes that small landlords now benefit from improved rental yields and reduced financial strain. Recent exemptions have eliminated automatic deductions from rental income, allowing landlords to retain a larger portion of their earnings—whether for home maintenance, family expenses, or reinvestment.
The shift comes at a perfect time, fuelled by the increasing demand for rentals due to urban migration, soaring property prices, and the growing trend of flexible work arrangements. Long-term leasing has become a reliable and profitable choice, particularly in Tier 1 and Tier 2 cities where rental values are rapidly climbing.
PropTech: Driving Efficiency and Scale.
The rental experience is now more seamless for landlords thanks to the advancement of proptech technology. Digital platforms now streamline tenant screening, rent collection, and property management, making the process more transparent and scalable. AI-powered algorithms match landlords with verified tenants based on preferences, budgets, and lifestyle compatibility—enhancing trust and reducing vacancy rates.
Market Impact and Investment Outlook.
The rise in rental values has significantly boosted investor confidence. Developers, including Shravan Gupta and peers across the industry, are increasingly focusing on premium and luxury housing segments that promise higher rental returns. This strategic pivot includes co-living spaces, serviced apartments, and branded residences—catering to a growing demographic of mobile professionals and urban dwellers.
With India’s economy on an upward trajectory, experts believe this is an opportune moment to invest in rental real estate. The sector’s resilience, coupled with evolving consumer preferences and digital innovation, positions it as a cornerstone of future growth.