Forecast for the development of the residential rental market in India
The relevance of research
The main reasons for renting residential real estate are: the inability to buy their own housing, the desire to live separately from parents/relatives, moving for professional/family reasons (closer to work/school/relatives), improving the quality/level of amenities/area of housing
Purpose of the study
Analysis of the state of the residential property rental market in India, assessment of the market size, analysis of competitors, as well as identification of factors affecting the residential property rental market
Content
Chapter 1. Key Components of the Residential Rental Market
1.1. Market size
1.2. Growth rate of the residential property rental market
1.3. Residential rental market trends
1.4. The main problems of the industry
1.5. Life cycle stage of the residential rental market
1.6. Estimation of the number of buyers and their financial capabilities
1.7. Estimated consumption per capita
1.8. Analysis of sectoral indicators of financial and economic activity
1.9. Price analysis
Chapter 2
2.1. Economic components
2.2. Social Components
2.3. Technological components
2.4. Political Components
2.5. STEP-analysis of the residential real estate rental market
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
3.2. Number of competitors and relative market shares of the largest competitors
3.3. Compact location of industry companies in certain regions
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
4.2. Analysis of the impact on the state aid industry at the current date
4.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers in the residential rental market
4.4. Prospects and growth drivers for the residential property rental market
4.5. Forecast for the development of the residential property rental market in the context of the current economic crisis due to covid-19
Chapter 5 Forecasting Methodology
5.1. Methods for forecasting key industry indicators
5.2. Sources of information for forecasting
5.3. Timing of forecasting
Research excerpt
Chapter 1. Key Components of the Residential Rental Market
1.1. Market size
Lease is a form of property contract in which the property is transferred temporarily ...
The main reasons for renting residential property are:
Absence … (…%);
A wish … (…%);
...
Diagram 1. Reasons for renting residential property, %
The residential rental market in India consists of … (…% of the market) and … segment (…% of the market). The non-profit segment includes…
On the commercial residential real estate rental market, the main lessor is an individual – …% and …% - legal entities. Most of the rental housing is in the shadow sector of the Indian economy. Apartments are often rented out without concluding a contract, and the terms of rent ... According to the data ... in the study period, the share of rented housing was ...% of the total housing stock.
According to GidMarket analysts, at the end of 2020, the market volume amounted to … billion rupees.
1.2. Growth rate of the residential property rental market
According to GidMarket analysts based on data from ..., during 2016-2020. residential real estate rental market in India in monetary terms …, it was noted …% annually. At the end of 2020, the market volume amounted to … billion Rs., which is …% less than in 2019. The average annual growth rate in the industry for 2015-2019 amounted to …%.
According to GidMarket, in 2020 the total area of residential property rental in India amounted to … mln m2, which is …% less than in 2016 and … than in 2017, when …
Diagram 3. Dynamics of the volume of the residential property rental market in India for the period 2016-2020 in monetary terms, billion Rs.
1.3. Residential rental market trends
...
1.4. The main problems of the industry
...
1.5. Life cycle stage of the residential rental market
From a lifecycle perspective, the commercial residential rental market is in its infancy...
This is evidenced by:
...
According to …, about …% of families live in rental housing in India. The volume of rental housing is estimated at …% of the total housing stock. In Western countries, this share is …% of the housing stock, and in large cities like New York and Berlin, it reaches …%.
In order for potential demand to become real, it is necessary to create the appropriate conditions. Firstly, it is…
1.6. Estimation of the number of buyers and their financial capabilities
The residential real estate rental market continues to develop in direct proportion to the income and employment of the population.
According to …, the real disposable money income of the population in 2020 decreased …%. This is the strongest drop since 2016. Then it amounted to …%. The next year, there was an improvement in dynamics - the decrease amounted to …
Real wages of Indians (adjusted for inflation) in 2020 …% in annual terms.
...
Among the reasons for the decline in real income, Rosstat notes the growth of interest payments on loans and …
In May 2021, for the ninth month in a row, a decrease in the number of …
1.7. Estimated consumption per capita
In 2020, the volume of rental of residential real estate per capita amounted to … Rs./person, which is …% less than in 2019. The average annual growth rate of the indicator value in 2016-2020. amounted to …%.
1.8. Analysis of sectoral indicators of financial and economic activity
Consider the financial and economic indicators of the residential property rental market for 2016-2020.
Gross margin
Gross margin is gross profit divided by sales revenue (excluding excise taxes and VAT). Gross margin shows…
In comparison with the indicators for all sectors of the Indian economy, the industry under study has more than ... gross margin indicators. At the end of 2020, the gross margin of the industry by … p.p. .. the average for all sectors of the Indian economy.
However, there is a progressive ... gross margin for the period 2016-2020, which indicates ...
Return on profit
Regarding profitability in all industries of India, indicators in the study period ... indicators of the Indian economy. Profitability indicator during 2016-2020 has … meanings, leaving in 2019-2020. in ... According to the results of 2020, the value of the indicator is …%.
...
Diagram 7. Profitability of profit before tax (profit of the reporting period) in the sphere of rental of residential real estate in comparison with all sectors of the Indian economy, 2016-2020, %
Current liquidity
Values of current liquidity in the industry in 2016-2020 were in the range of ... times. The higher the value of the current liquidity ratio, the higher the liquidity of the company's assets. The value of the ratio ... Current liquidity ratio is too high ... Since 2018, the value of the current liquidity of the residential property rental market is ... industry-wide values for India.
Absolute liquidity
Residential rental industry in 2016-2020 in general, it has indicators of absolute liquidity slightly ... than in all sectors of the economy. The maximum value of the indicator was noted in … p.p., which is by … p.p. more than in all sectors of the Indian economy.
In 2018 and 2019 observed ... absolute liquidity of the residential property rental market. The normative value of the absolute liquidity ratio is within ...
Business Activity Indices
For the period from 2016 to 2020, the average term of receivables was within … days.days. In 2020, the value of the indicator for the industry amounted to … days, which is … the average value of the indicator for all sectors of the economy as a whole by … p.p.
Financial stability
Financial stability indicators in 2017-2020 were … than in the industry as a whole and throughout the entire period … of the normative value (10%), which indicates ... At the same time, in 2020, … values of the indicator were noted by … p.p. compared to 2019.
...
1.9. Price analysis
After the growth of prices for rental of residential real estate in 2015 by …%, in subsequent years (2016-2018), …% occurred on the market. In 2019, market prices fixed (growth …%), which is also observed based on the results of 2020 (…%).
The average cost of renting a one-room apartment in India in May amounted to … thousand Rs. per month, having decreased by …% relative to April. Such data is provided by... The average weighted rate in India is … thousand Rs. per month. This is …% lower than in April and …% cheaper than in May last year.
In general, in the first half of 2021, the situation in the residential property rental market …
The average prices for renting a one-room apartment in India at the end of 2020 amounted to … thousand Rs./month, and for 6 months of 2021 – … thousand Rs./month. At the same time, the maximum price was recorded in 2016 – ... The highest prices in 2021 were noted in … Union Territories – … thousand Rs./month, which is by …
Table 4. Average prices for renting a one-room apartment from individuals in the Union Territories, 2016-2021 (6 months), Rs./month
The average price for renting a two-room apartment in India in the first half of 2021 is …% higher than the cost of renting a one-room apartment. At the end of 2020, the cost of renting a two-room apartment amounted to … thousand Rs./month, and in 2021 (for 6 months) – … thousand Rs./month. The highest prices in 2021 are marked in …
Chapter 2
2.1. Economic components
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced ...
The impact of the crisis, which began in 2008, led to a decrease in GDP by …% in 2009, but then the growth rates were quite high until 2012 inclusive. In 2013-2014 there was a decrease in annual GDP growth rates, and in 2015 the dynamics of GDP moved to …, and in 2016 it was in …
The fall in India's GDP in September 2020 is estimated at …% in annual terms after declining by …% in August, by …% in July. The recovery in September was supported by a gradual …
According to the results of 2020, the ministry estimated the overall decline in India's GDP at the level of …%.
In the context of circumstances that currently negatively affect the size of GDP in the short and medium term, we indicate the opinions of experts.
...
2.2. Social Components
...
2.3. Technological components
...
2.4. Political Components
...
2.5. STEP-analysis of the residential real estate rental market
In general, the impact of macro factors on the residential property rental market can be assessed as … .. forces. The negative influence is exerted by the group...
Factors such as…
Table 6. STEP analysis of factors influencing the residential rental market
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
...
3.2. Number of competitors and relative market shares of the largest competitors
The efforts of the state to bring the business of renting apartments out of the shadows and create a civilized rental housing market have not yet led to noticeable results, and therefore, large business to the prospects of the …
At the moment, the official, legal market player in the residential real estate rental market in India is … Note that the company's market share is …%. …
As of 2019, the market is represented mainly by ... The share of ... accounts for about ...% of the market.
Diagram 19. Shares of the largest competitors in the residential property rental market in India in 2020, %
3.3. Compact location of industry companies in certain regions
… The main concentration of residential property for rent is located in … (…%).
In … residential properties for rent are located at the following addresses:
- ...;
- ...;
- ...;
By …% it falls on … region (…) and … region (…).
In … rent is provided in …
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
...
Table 9. Assessment of the impact of recent crises on the industry
...
4.2. Analysis of the impact on the state aid industry at the current date
...
4.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers in the residential rental market
...
4.4. Prospects and growth drivers for the residential property rental market
...
4.5. Forecast for the development of the residential property rental market in the context of the current economic crisis due to covid-19
...
Chapter 5 Forecasting Methodology
5.1. Methods for forecasting key industry indicators
...
5.2. Sources of information for forecasting
...
5.3. Timing of forecasting
...
Diagrams
Diagram 1. Reasons for renting residential property, %
Diagram 2. Structure of the market for commercial rental of residential real estate by types of landlords, %
Diagram 3. Dynamics of the volume of the residential property rental market in India for the period 2016-2020 in monetary terms, billion Rs.
Diagram 4. Dynamics of the volume of the residential property rental market in India for the period 2016-2020 in physical terms, mln sq. m.
Figure 5. Market life cycle stage
Diagram 6. The volume of consumption of residential property rental per capita, 2016-2020, Rs./person
Diagram 7. Profitability of profit before tax (profit of the reporting period) in the sphere of rental of residential real estate in comparison with all sectors of the Indian economy, 2016-2020, %
Diagram 8. Current liquidity (total coverage) in the field of residential property rental for 2016-2020, times
Diagram 9. Business activity (average term of receivables turnover) in the field of residential real estate rental, for 2016-2020, days days
Chart 10. Consumer price indices in the residential real estate rental market in India in 2016-2020, %
Diagram 11. Dynamics of India's GDP, 2016-2020, % to the previous year, trillion Rs.
Diagram 12. Monthly dynamics of the US dollar against the rupee, 2015-2020, Rs. for 1 US dollar
Diagram 13. Dynamics of the inflation rate in India, 2016-2020, %
Diagram 14. Dynamics of the population of India, as of January 1, 2012-2020, million people, thousand people
Diagram 15. Population forecast in India for the period 2021-2024, million people
Diagram 16. Dynamics of real incomes of the population of India, 2016-2020, %
Diagram 17. Structure of the residential property rental market by type, %
Diagram 18. Structure of the apartment rental market in multi-storey buildings, %
Diagram 19. Shares of the largest competitors in the residential property rental market in India in 2020, %
Diagram 20. Compact location of companies in the industry in certain regions, %
Diagram 21. Forecast of the volume of the residential property rental market in 2021–2025
Tables
Table 1. Residential Rental Industry Gross Margin vs. All Industries in India, 2016-2020, %
Table 2. Absolute liquidity in the residential rental sector in comparison with all sectors of the Indian economy, 2016-2020, times
Table 3. Financial stability (capacity of own working capital) in the sphere of rental of residential real estate in comparison with all sectors of the Indian economy, 2016-2020, %
Table 4. Average prices for renting a one-room apartment from individuals in the Union Territories, 2016-2021 (6 months), Rs./month
Table 5. Average prices for renting a two-room apartment from individuals in the Union Territories, 2016-2021 (6 months), Rs./month
Table 6. STEP analysis of factors influencing the residential rental market
Table 7. Main participants in the residential property rental market in 2020
Table 8. Basic information about the residential real estate rental market participant …
Table 9. Assessment of the impact of recent crises on the industry
Table 10. Analysis of the impact on the industry of the state aid proposed to date
Table 11. Forecast indicators of the development of the Indian economy in 2021-2023
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