India's IT hub, Bengaluru, is thriving. Not only does it have a large number of multinational corporations and IT firms, but it also has a large number of educational institutions that draw students from outside of Karnataka.
The real estate market is likewise expanding against this backdrop, and despite the pandemic, property rentals have been rising year over year. When the epidemic struck, many employees fled the city. Now that businesses have established a hybrid work paradigm, people are returning, and housing rentals have surged.
There are almost 1.5 million techies living in Bengaluru, and there will always be a high demand for homes and hotels that accept paying guests. Rentals are estimated to have grown by at least 25% post-Covid, and this year, house rentals will rise by another 5-12%, predict realtors. Additionally, landlord interviews have become more difficult than those for jobs.
According to Anarock Research's data, rents for a 1,000-square-foot, two-bedroom flat on Sarjapur Road, which currently commands a rent of roughly Rs 27,000 (sans maintenance), will rise by about 7 to 12% this year. According to realtors, the residential districts surrounding Outer Ring Road, Bellandur, and Manyata IT Park are projected to have the greatest rental price growth because they are home to about 500,000 IT workers. Rents have risen dramatically in certain regions by 30 to 50% as well.
According to Anarock's analysis, Bengaluru only gained 13,500 new residential units in the first quarter of 2023, a 3% rise as opposed to a 55% growth in Mumbai. Bengaluru, with a 3.9% rent yield, has overtaken all other Indian cities. In Bengaluru's Whitefield from 2019 to 2022, the average rental growth rate was 18%, whereas in Rajaji Nagar it was 16%. Just from January to April of this year, rents in Varthur climbed by about 10%.
Techies are having trouble finding excellent homes that fit their budgets, while Bengaluru's paying guest accommodations have also seen an increase in rents of anywhere between 25 and 40%. According to reports, PGs close to educational institutions charge each guest anything from Rs 13,000 (for triple sharing) to Rs 21000 (for a single room).
