Page 320 - Emerging Trends and Innovations in Web-Based Applications and Technologies

International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
characteristics, including New York City, London, and Ø Economic Factors: Income levels and employment rates
Mumbai. Interviews with industry experts, real estate agents, were found to have a direct correlation with rental price
policymakers, and tenants provide a deeper understanding trends. In cities where incomes have stagnated or fallen,
of the practical implications of market trends and regulatory rental prices have remained flat or decreased.
measures. Conversely, cities with strong economic growth have
experienced rising rental costs.
4. Results and Discussion
4.1. Trends in Rental Market Dynamics Ø Population Growth and Urbanization: Cities with
The analysis reveals several key trends in the urban flat rapid population growth, such as Mumbai and Jakarta,
rental market: have seen significant demand for rental housing,
Ø Rising Rental Prices: Urban areas, especially in high- pushing up rental prices. This is particularly true in
demand cities, have seen a consistent rise in rental areas with limited housing development due to land
prices over the past decade, driven by growing urban constraints or bureaucratic delays.
populations and limited housing supply. This trend has Ø Supply and Demand Imbalance: A fundamental driver
exacerbated housing affordability challenges, of rental prices is the balance between supply and
particularly for low-income renters.
demand. In cities with restricted housing supply, such as
Ø The Role of Gentrification: Gentrification has been a London and New York, competition among renters has
key driver in certain cities, where neighborhoods driven prices higher, exacerbating affordability issues.
previously dominated by lower-income residents are Ø Government Policy: The study finds that rent control
increasingly becoming attractive to higher-income laws and zoning regulations have mixed effects on rental
tenants. This trend has pushed up rental prices,
particularly in cities like New York, London, and San markets. In cities with strict rent control measures, such
as Berlin, rental price increases have been limited, but
Francisco.
housing supply has been restricted, leading to longer
Ø Technological Transformation: The growth of online waiting times for tenants.
property platforms and short-term rental services like 4.3. Impact of Technology on Rental Markets
Airbnb has reshaped how rental markets operate, Technological advancements, particularly the rise of online
providing tenants with more options and increasing platforms like Airbnb, have transformed the urban rental
price transparency. These platforms have also increased
competition in the rental market, particularly in tourist- market. These platforms have created new opportunities for
landlords, enabling them to offer properties on a short-term
heavy areas.
basis and achieve higher rental yields. However, they have
4.2. Determinants of Rental Price Fluctuations also contributed to rental price inflation in tourist-heavy
Several determinants were identified as critical to cities, where short-term rentals reduce the availability of
understanding rental market fluctuations: long-term rental properties.

5. Housing Rental Market Trends: Rental Yield in Percentage City & Year Wise:
Chart Title

30
20
10
0
Bangalore Delhi Pune Mumbai Chennai Hyderabad KolkataRental yeild in percentage over the years
Kochi
Rental yeild in Percentage in Top Cities (Approximately) 2024(Q1)
Rental yeild in Percentage in Top Cities (Approximately) 2023
Rental yeild in Percentage in Top Cities (Approximately) 2022
Rental yeild in Percentage in Top Cities (Approximately) 2021
Rental yeild in Percentage in Top Cities (Approximately) 2020
Rental yeild in Percentage in Top Cities (Approximately) 2019

Fig.1
6. Housing Rental Market Trends Increase Or Drop: According to the most recent ANAROCK data, the increase of
Overheated housing rentals are beginning to stabilize as rental costs in the top seven cities across Indian
more housing supply enters the markets of the top cities. marketplaces is trending downward. According to the data,
According to data released by a market source, residential the second quarter of 2024 saw a rise in average residential
rentals in important micro markets in major cities increased rental prices across important markets in these cities of 2
by 2-4% in Q2 2024 as opposed to 4-9% in Q1 2024. More and 4% from the previous quarter.
housing supply can have an impact on housing rental market Rent prices in the top markets increased by 4 to 9 percent
trends.
every quarter in the first quarter of this year compared to
the fourth quarter of the previous year (Q4 2023).

IJTSRD | Special Issue on Emerging Trends and Innovations in Web-Based Applications and Technologies Page 310