How furniture rentals go in pune market
In the last few years, Pune has witnessed a tremendous transformation in the commercial and residential sectors. The growth of automobile and IT industries, along with the presence of state-of-the-art educational institutions in Pune has resulted in an influx of migrant population, especially in the age group of 22-35 years. This has also resulted in healthy real estate growth with different preferences of property available across locations and varying budgets for investment and rental purposes. Owing to a large number of expats in the city and a growing trend to rent, the rental furniture industry has been an enormous beneficiary in this segment. The sharing economy has grown exponentially across the world. The idea of ownership has been superseded by the desire to gain better experiences by sharing resources. Increasingly, people are turning to renting everything from property to clothes. Furniture and appliances are no exception. It gives you access to various utilitarian products, without the burden of buying and maintenance.
Renting a set of basic furniture and appliances can cost you anywhere between Rs 10,000 and Rs 15,000 each month. While this doesn’t seem cheap, usually free delivery and set up, relocation, cleaning and maintenance, and swaps are also part of the package. You can get complete bedroom package for as little as Rs 1,200 a month. This includes a double bed and mattresses, a bedside table, a wardrobe, a dressing table and bed linen. Try buying the same stuff and you will have to shell out nearly Rs 35,000. Not too much, but remember there is an opportunity cost of this money.
ET Wealth crunched the numbers to find out which option works out better. If you rent, you will pay only Rs 1,200. If the balanced Rs 33,800 is invested to earn a modest 8%, that corpus can fund the rent for the next 33 months. After that, the buying option becomes more cost effective. Do keep in mind that after 33 months, the value of the stuff worth Rs 35,000 would have depreciated to Rs 19,879 (assuming 25% depreciation).
Segments responsible for the growth of the rental furniture market in Pune are :-
Students - The education capital of India, Pune attracts thousands of students every year from all across the country. Although hostels are the prime choice for accommodation, not all institutes provide quality accommodation. In such cases, students are faced with the most probable solution to opt for co-living accommodation. In the case of co-living accommodation, one has to share several things in smaller spaces. Moreover, one might end up wasting precious time and money looking for a piece of furniture that’s affordable as well as stylish. There’s another caveat to buying furniture if one has to share a flat with a colleague or friend. There’s a chance of significant financial loss if the other occupant moves out abruptly during the tenure of the stay. Under such circumstances, furniture rental can be a useful option as one does not have to invest a considerable amount nor worry about the hassles of ownership.
Working professionals - Young working professionals and bachelors who have just started their careers may find it hard to invest or have stable financial savings. For such professionals who often find themselves with minimum requirements and a short-term outlook, renting of furniture makes perfect sense. If one isn’t sure of how long they would be working in the same city, renting offers the flexibility of relocation and damage waiver, in case of any accidental damage. Renting is the perfect option for those looking for a complete home furnishing package on a limited budget.
Newly married/DINK couples - While preferences tend to evolve or change over time, there is an inevitable shift when it comes to choosing a piece of furniture for your home. A newly married couple or DINK (double income, no kids) couple may dream of setting up an ideal home with elegant and stylish furniture. Going ahead, this may change as the family makes room for children in the family. The same elegant furniture will be replaced by furniture that’s sturdy, child-friendly, and practical. As the children grow up, a need might arise for furniture or essentials like a study table or a single bed in place of a bunk bed. For such people, renting furniture is needed at a point of time and then, upgrading it going forward, works best.
Online renting companies are changing the way Indians use products by disrupting the very idea of ownership. In fact, MebelKart, a specialist in online furniture and end-to-end home services, is launching a separate arm for the growing segment. Furniture rentals are a cost effective way to do up your home.