There is a steady and inflexible demand for studio apartments, both in the metros and tier 2 cities. These apartments are usually the first to be sold out in a residential project that features them.
Residential property capital values as well as rentals in Chennai are driven by location – the specifications and amenities provided in projects do not figure significantly in the decision matrix of customers. Conversely, capital values and rentals in Bangalore are driven primarily by specifications and amenities.
The Indian rental housing sector is seriously under-serviced by the organized real estate industry. The onus to meet the huge demand for such housing falls largely on the unorganized sector – meaning individual property owners. By the same coin, the rate of organization of the sector is so rapid that we can see the shortage of rental space increasing alarmingly on a year-on-year basis.