How much transit rent should you demand during redevelopment in Mumbai?

A simple, member-level guide to judging whether the transit rent on offer will really keep your family housed nearby.

Ask for enough monthly rent to actually take a similar flat in or near your own locality. Rent is usually fixed per sq.ft of your existing carpet area, rises each year, and must continue until you get possession, plus a deposit and shifting charges.

What should the transit rent actually cover?

The test is practical, not theoretical: the monthly amount should let you rent a comparable home in or near your present locality, close to the same station, school, chemist and doctor your family already depends on. Rent is normally quoted per sq.ft of your existing carpet area, so a larger flat draws a larger amount. Alongside the monthly figure, a fair arrangement also gives you a refundable deposit (Mumbai landlords usually demand several months in advance), shifting charges for moving out and moving back, and brokerage. Ask for each of these separately and in writing, never as one vague lump sum.

How do I test the figure a developer has offered?

Multiply the offered per sq.ft rate by your carpet area, then compare that with what flats of your size genuinely fetch in your area today. Our rent comparison tool sets transit rent against real market rents across 177 Mumbai localities, so you can see the gap for yourself. If your carpet figure is unclear, settle it first using the carpet and built-up converter. Then check that the offer:

houses you in the same locality, not a cheaper suburb;
carries an annual escalation for every year of the project;
is paid in advance, not in arrears;
names the deposit, brokerage and shifting charges separately.

What happens if the project runs late?

Insist that rent continues until you actually receive possession, not until some promised date. The Government of Maharashtra directive dated 4 July 2019 under Section 79A of the MCS Act 1960 contemplates completion in about two years and a bank guarantee of around 20 per cent, and RERA 2016 Section 18 gives allottees a remedy for delay. Read our transit and construction guide before you sign anything.

Work it out for your own society

It shows how the transit rent you have been offered compares with real market rents for your own flat size in your own locality.

Open the Transit Rent Comparison Tool

Common questions

Is transit rent paid to me or to the society?

In most redevelopment schemes the developer pays each member directly, usually in advance and often several months at a time, because it is you who must pay a landlord outside. Some societies prefer collection through the society for discipline and record-keeping. Either way, insist the amount, due date and mode of payment are written into the registered Development Agreement.

Should transit rent increase every year?

Yes. Mumbai rents rise steadily, and a redevelopment project runs for years, so a rent fixed on day one will not house you in year four. Members normally negotiate a fixed annual escalation on the monthly amount, applied on each anniversary until possession. Compare the escalation offered against actual local rent trends before accepting it.

What if the rent offered is below real market rent in my area?

Then say so in writing, with evidence. Print current listings and broker quotes for flats of your size in your locality, place them before the managing committee, and raise the shortfall at the Special General Body Meeting. A gap of even a few thousand rupees a month becomes a serious loss over the life of the project.