Bangalore Rental Market has seen a surge since 2022, with the Return to Office from Work from Home culture and Student Influx in the City having sharply increased.
And it results from various conditions as well. Many new businesses are joining the scene.
Specifically, what are known as global capability centers (GCCs) of multinational corporations, and are producing new employment.
The corporates are increasingly opposing remote work and urging employees to return to the city.
Bangalore Rental Market soars due to Student inflow:
The city’s superior educational institutions attract students from around the nation.
The migration of students is gradually increasing. Young professionals and students rent apartments to economize and avoid stringent paying guest regulations.
A Report by Anarock on the Bangalore Rental Market:
According to property consultancy Anarock, Bangalore’s rental market growth has been the greatest among significant Indian cities.
According to a report issued this week, Sarjapur Road had a 67% rental rise between the end of 2021 and the first half of 2024, with average monthly rentals for 2BHKs going from 21,000 to 35,000.
In the Bangalore rental market, annual rental increases normally range between 5% and 10%; however, what has occurred over the last two and a half years is more than double that.
Areas near the IT Corridor, such as east Bengaluru and north have experienced the most dramatic increases. But housing rentals are also soaring in the central Bengaluru district (CBD), Indiranagar, and Koramangala.
San Francisco of India:
The robust job market is the main reason, and companies are now expecting workers to work from the office instead of their homes. These trends are expected to continue.
Andy Jassy, CEO of Amazon, recently told everyone to start working from the office, saying, “The benefits of being together in the office are significant.”
Bengaluru is now identified as the “San Francisco of India” because it is a hub for smart people working in IT, related companies, and new businesses.
Bengaluru Rental Market Trends: Flats Preferred over PGs
Another trend that is rising is that millennials, especially students and new graduates, are picking shared apartments over PGs because they give them more independence and privacy.
In contrast to PGS, which usually has restrictions, guest limits, and set mealtimes, shared accommodations let people be flexible with their daily plans.
Students like having the freedom to make changes to their space, which makes living there more comfortable.
Students can split costs like groceries and utilities, which makes it more reasonable.
A student from Kolkata who is doing her postgraduate studies in Bengaluru. “The rent for shared apartments is usually higher than PGs, at Rs 13000 to 20000 per person.”
“The average cost of living for students in Bengaluru, including rent, utilities, and food, she says, ranges between Rs. 20,000 and 30,000 per month.”
Many apartment complex residents don’t like it when so many youngsters live together in one room, so these kinds of plans are irksome to other flat occupants.
But for the owner of the flat, the total rent can be a lot. Based on how many people they can fit in a room, a 3BHK could earn them at least 60,000 to 70,000 per month.
Residing far away from centers of activity:
According to Chintan Kothari, a partner at Settler Real Estate Consultants, despite the fact that there has been a significant increase in the demand for housing, the supply of housing, particularly for tenants with middle incomes, has simply not kept pace with the demand.
A great number of people have been compelled to look for houses on rent that are farther away from their places of employment.
As a result, an increasing number of individuals are increasing the distance they travel to get to their places of employment.
Not only does the scenario have an impact on their quality of life, but it also contributes to the general traffic problems that the city is experiencing.
Because of the expensive rental expenses in the area around his place of employment, one of the residents, a former employee of IBM, found himself residing 112 kilometers away from his place of employment.
The daily commute which might take anywhere from forty-five minutes to an hour depending on the traffic conditions, was a daily problem for him.
The market is Stabilizing:
According to reports, the new housing supply is gradually flowing in, and as a result, the city is slowly beginning the indication of stabilization of the rental market.