Bengaluru: The Trump Organization’s real estate partner, Tribeca, has launched Trilive, a rental housing development platform and will launch its first project in Mumbai.
Tribeca partnered with co-resident operator Housr to meet the demand for rental housing for millennials and singles in the top cities. In its first project, Trilive purchased 650 studio apartments from Mumbai-based developer Starwing Group.
In the project, it plans to have a rental yield of 6% and rent a 9-year lease from Housr, which is higher than the general yield of 2-4% in the residential sector. The price of 300 studio units of approximately 200 square feet is at ₹7 million each. The remaining units will be rented to potential tenants.
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“Marol is a huge employment hub. We have redesigned the units and will provide them. Demand for such features is high, but there is little supply. These properties will be managed by Housr and investors will receive stable, secured rental and capital appreciation for a period of time. Mehta is also the co-founder of Housr, which owns 75 properties in five cities and is supported by HDFC Capital and Adar Poonawalla Institute of Serum India.
Trilive intends to deploy a rental housing model and bring it to cities like Pune, Bengaluru and Hyderabad.
Mehta added that it plans to raise $100 million to expand its business. The company is in discussions with institutional investors to provide funding at the portfolio level.
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“After serving 15,000 residents, we know exactly what they want and are able to give them a high-quality managed living experience. The biggest constraint is not demand, but the supply of studio apartments. With this partnership with Trilive, we are looking at rapidly expanding by securing a steady supply of 7,000-8,000 beds across India in the next two-three years,” said Deepak Anand, co-founder and chief executive officer, Housr.
A March report by Anarock Property Consultants said that between the end of 2021 and the end of 2024, the capital value of major micro-markets in the top seven cities increased by 128%, while many micro-markets had rent values lower than overall capital value growth.
For investors, this shows that capital appreciation outweighs rent growth in long-term returns in cities such as Noida, Hyderabad and Mumbai Metropolitan Region (MMR).
“Nether than ever, investors have to align strategies with specific locations and specific lines,” said Anuj Puri, chairman of Anarok. “Those who seek long-term capital appreciation can target high praise, while rent-centric investors should be zero in areas where rents are steadily rising. It is important for home buyers to weigh real estate price trends against rent growth to understand the trends that are buying or more financially meaningful in each location.”
