The economy of India has gone through many ups and downs in the past years. But, the recent changes of the Indian economy have come with many surprises in its pocket. There is an uproar of the economic slowdown in most of the Indian market. However, to our surprise, the Indian rental economy is standing tall and strong, more than it used to be.

There is a big question among the consumers of the market.

And that question is, “What is the necessity of purchasing house, car, appliances or furniture in today’s market when everything is available on the rent?”

The investment ideas that were as strong as a pillar, they are now going down.

People have their perceptions of investment. Everyone thinks differently when it comes to investment.

But…

When it comes to low-risk investments with the same benefits, there is no way that a consumer will deny considering it. And that is exactly what gives the rental economy extraordinary advantage of getting consumer preference.

Benefits of Rental Economy

The right Deal

When the consumer step in the market, all they see are the expansive options…

…that will become even more expansive in the future.

This is similar to a never-ending chase of finding the right deal for investment where you can invest without any risk.

Additionally, with the market slowdown in the Indian market, the prices of almost everything are going on a hike.

In such a scenario, it is not exactly a wise choice to take a loan for appliance, furniture, car or house when you can afford it on rent without taking the burden of debt on your shoulder. Well, this is the benefit of being a part of the rental economy.

Less Investment

When you get a choice of enjoying your regular life with less investment…

It becomes evident that you will get the freedom of enjoying the experience of life without thinking about the expense for once.

This is almost like a dream for a common man in today’s market condition.

When the market is slowing down, people have more risk to bear. When someone opens the office, he or she prefers to take their furniture or appliances on rent.

The major reason for this change in the choices of common people is…

That there is nothing that can help them to stay optimistic about today’s job market.

Relocation

Relocation is also another big reason why people prefer to skip the purchase option…

…and simply decide to rent whatever they need for their daily life.

Enjoying your purchased and rent-free vehicle, appliances and furniture is certainly the best feeling.

But this feeling soon fades away and starts giving away the bitter taste of risk when you have to relocate them to another place.

If you face any damage during the relocation then your privilege of purchase can soon become a nuisance.

When we talk about business…

We cannot ignore the fact that people are more careful about their investments than ever before.

It has been observed that most of the companies and start-ups are giving their preference to rental and business-to-business arrangements which is less risky and fits perfectly with their new market and growth strategy.

For example, NestAway is a residential rental company that has recently collaborated with furniture rental companies like Furlenco.

This collaboration was intended to fill their rental apartments with cost worthy furniture and appliances that are certainly a win-win situation for both parties.

It is not a surprise that this generation has different preferences than the older generation.

This is evident from the words of Karan Jain, co-founder of Revv car rental, “While the old generation used to believe in owning, this generation believes in renting and experiencing everything.”

Another major highlight of rental services is that it allows a choice of staying trendy in less investment. 

In today’s market, when companies are experimenting with their product sales…

It is hard to say how many new models of specific cars or appliances will be released in the year.

With such an increasing rate of advancement in the market, it is hard to keep yourself updated with the latest tech and trend. Especially when you have purchased it, you will simply have to stick with what you have.

However, it is not the case with the rental.

When you rent a car…

You don’t have to follow any rule to keep renting it for a certain period.

If you see a better version or advanced version or even a more preferred version of the car available in the market…

You will simply need to make a call and your car will be upgraded! It is as simple as that!

The same rental trend has gone to a completely different level with business and offices as well.

According to the recent rental economic analysis by Neetish Sarda, founder of SmartWorks, “25% to 30% offices in India are estimated to be under co-working model and rental offices. There is the possibility of a huge hike in this percentage shortly.”

Even though the market is facing slowdown right now, there will be no stopping to the rental economy in India.

Why?

Well, according to the analysis and experience of Entrepreneur K Ganesh, “As the prices grow high and rental yield becomes as low as 2% – 4% in the real estate market, no one will be interested in investing their money unless they don’t want any return from their investment.” 

The same scenario is with all other investment options such as appliances, vehicles or furniture, etc.

Conclusion:

While observing the hike in purchase rate and a major slowdown in rental and resale rates, it is evident that the rental economy will bring more benefits to the consumer than any other option. Therefore, there are certain chances that the rental economy will grow even more. And as it grows, there will be more room for bringing innovation in the market and sharing new products that might work like healing therapy in present Market Slowdown.