Residential rents in Bengaluru have undergone a considerable spike in the last year and corporate personnel are battling to acquire homes amidst the partial reopening of companies and schools and migration from big cities.
Property brokers report an increase in interest in renting properties inside major communities, with as many as four to five potential renters bidding for the same property.
“There are four-five potential renters for the same property. Two-bedroom, three-bedroom, and bigger houses are highly sought after. We are obliged to seal the agreements on the spot owing to tremendous demand,” said Shabeer Pasha, a property dealer.
Property prices and rental yields have undergone a huge spike across seven major cities in India over the last five years, according to property brokers. The greatest growth in property prices throughout this time has been in Bengaluru and Hyderabad.
An industry study further indicated that rentals in several areas of Bengaluru have climbed by double digits since 2019, in keeping with a larger trend throughout India’s main cities.
Ajay Joshi, CTO of a technology business, experienced problems in obtaining acceptable lodgings upon migrating from Mumbai. “I have been searching for a 3-bedroom property in a central area that costs above Rs 60,000,” Joshi added, saying that he has subsequently extended his search to the suburbs.
Sandeep Singh, who works for a major financial organisation, has a similar battle with finding acceptable accommodation. He enlarged his search radius from 2 kilometres to 16 kilometres but has yet to discover the right property. “It’s impossible, but I have not lost hope. With so many individuals migrating back to the urban regions, there is a lack of rental housing, particularly in places closer to tech parks and business centres,” he noted.
Bangalore, the capital of Karnataka state, is home to approximately 1.5 million people, including those employed by worldwide multinational corporations like Amazon, Microsoft, Alphabet Inc Google, and JP Morgan. The epidemic displaced many of these workers, leading them to return to their hometowns. The consequent surge of people has contributed to the shortage of rental accommodations, aggravating the issue of finding an acceptable home in the city.
According to property brokers working in the Whitefield and Marathahalli regions of Bengaluru, rental costs for a 2-bhk in Prestige Shantiniketan that formerly leased for Rs 35,000 per month have suddenly escalated to Rs 50,000 per month. Similarly, a 2-bedroom flat in Purva Fountain Square, which was leased for Rs 32,000 per month, is now rented for Rs 45,000 per month.
Comparable increased trends in rental costs are being noted in other sections of Bengaluru as well, including the ORR, Bellandur, and Sarjapur Road. Sharmila Agarwal, an employee at Deloitte, told her experience: “I had leased out a 3-bhk for Rs 30,000 per sq ft, and my landlord had raised it twice in a year. Ultimately, I had to evacuate since he was seeking a further rise.”
Potential renters in Bangalore are also battling with hefty deposit requirements of 10–12 months as well as sharing professional credentials, adding to the strain for those coming to the city.
“Rental revenue suffered a steep fall during the epidemic but has also shown a fast comeback with demand surpassing supply. Rising home-loan rates and economic uncertainties may also push potential homeowners to prolong their buying selections and opt for rental properties,” observed Rajendra B, an independent broker.
During the pandemic, residences in Bengaluru had to be leased out at dramatically discounted prices as many inhabitants returned to their hometowns. As a consequence, the rental market plummeted by as much as 50% in certain instances, with boards promoting decreased prices evident around the city.
The Indian rental housing industry has shown a steady rebound over the first two quarters of 2022, with rental demand hitting its high during this time. At the beginning of the new financial year, it is projected that rental demand will continue to climb, and rental prices will further strengthen.
