As rental prices in Mumbai continue to rise, a growing number of tenants and landlords are exploring a unique leasing model: zero monthly rent in exchange for a hefty, refundable deposit. Known locally as the “pagdi-style” or “heavy deposit” system, this trend is making a quiet comeback in pockets of the city—especially in South Mumbai and select western suburbs.
Under this model, tenants pay a one-time deposit ranging from ₹10 to ₹30 lakh, depending on the property’s location and size, and live rent-free for a fixed term—usually 2 to 5 years. For landlords, it offers a lump sum that can be reinvested or used for personal needs. For tenants, it means freedom from monthly rent hikes and long-term cost savings.
However, real estate experts urge caution. While the model eliminates recurring rent, it ties up significant capital and often lacks legal clarity if not backed by a robust agreement. Also, tenants risk delays in deposit refunds if disputes arise.
Still, in a high-rent market like Mumbai, this strategy is gaining attention among financially-savvy renters and investors alike.
