The rental industry is going bust
The rental sector is the backbone of the economy of the nation.
It is the one industry that provides jobs and livelihoods to millions of people.
The industry, however, is going through a profound crisis.
The rental sector has witnessed a dramatic change in the last two decades.
The number of rental units in the country has drastically decreased.
In 2005, there were around 14,000 rental units, and by 2020, it had fallen to 8,500.
The loss of this industry has forced people to go back to their homes.
The number of people renting has fallen from 4.5 million in 2005 to 3.2 million in 2020.
This has impacted the economic viability of the sector.
The trend towards lower rental rates has affected many sectors, from accommodation to food services.
In the last decade, the percentage of rental housing units in cities like Chennai has declined from 43 per cent in 2006 to 30 per cent by 2020.
The total rental units has also decreased from 2.8 crore in 2006-07 to 1.3 crore in 2020-21.
According to the government, the number of rentals in Chennai fell by a third between 2009 and 2020 due to the downturn in the economy.
In comparison, the growth in the number in the national capital has not decreased.
According to a report in The Hindu, the city has seen an increase in the rental sector and has seen the growth of its overall business.
The situation is particularly dire in the area of accommodation.
The overall trend is that of an overall decline in rental units.
According the report, the vacancy rate of rental properties has increased from 6 per cent to 15 per cent since 2009.
This is mainly due to a change in mindset of landlords.
The lack of quality has also affected the rental industry.
According in a report by Rama S. Bhattacharya, co-founder and managing director of Avantra Real Estate Advisors, an agent firm, a majority of landlords are renting their properties to the people who cannot afford to pay.
According an article in The Times of India, over 80 per cent of the rental properties are being rented out in poor areas, in areas where the availability of affordable accommodation is very limited.
The high demand for rental properties in these areas has also led to a large number of empty properties, and hence, people are leaving the sector and the industry, which has been in decline for the last three to four decades.
Bhattachary said that over the last 10 years, the rental housing market in the city of Chennai has witnessed drastic decline.
“The rental market has shrunk significantly,” he said.
“Rentals in the state are being sold to developers and not being rented to the tenants, or the people.
In a recent case, one of our properties in the capital was sold to an investor for Rs 1 crore and the tenant was paid Rs 200 per month.
Even though he has rented it for less than Rs 1 lakh, he has lost Rs 2.5 lakh.”
While there is a decline in the overall rental sector, there is also a shift towards renting apartments in private homes.
According in a previous report by The Times Of India, in 2016-17, there was a sharp decline in rentals in the commercial sector.
There is a trend towards a significant increase in private rentals in these sectors, which are being made available in private residences.
The growth in this sector is due to both the demand for private housing as well as the increase in real estate prices.
According a recent report by the National Economic Research Institute, the real estate sector is expected to grow by 7.9 per cent between 2020 and 2021.
The demand for apartments is expected increase by 9.5 per cent and rental properties by 3.7 per cent.
According a report published by the State Bank of India in April this year, the rate of profit in the residential sector will be higher by 9 per cent from 2019 to 2021 compared to the same period in 2020 and 2022.
The report also mentioned that the number and size of vacant apartments in the industry is also on the rise.
According the report by Rajiv S. Pachauri, director, Centre for Financial and Market Research, the total number of residential units in Chennai has increased by 7,854 in the period 2016-2021.
Of this, there are 8,721 vacant units, while there are 1,923 unoccupied units.
The housing stock is underutilised by a large margin, especially in areas like Madras and the Chennai Metropolitan Region.
According Pachauris report, a large part of the vacant units are in the North and South Chennai regions.
This may explain the large number in Tamil Nadu.
According, in the past few years, there has been a massive increase in vacant apartment units.
The average rent in these units is Rs 1.5 crore, which is significantly more than the Rs 900-1,000 per month the average rent is in the Tamil Nadu cities.
In 2017-18, the housing stock in the