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By India Today News Desk: Bengaluru, the IT capital of India, is booming. Not just because it has many multi-national and IT companies, but also because of numerous educational institutions that attract students from outside Karnataka. Against this backdrop, the real estate market is also booming and, despite the pandemic, the rentals for homes have been increasing year on year. Many employees moved out of the city when the pandemic hit and now that companies have adopted a hybrid model of work, they are returning, and home rentals have skyrocketed.
Bengaluru houses around 1.5 million techies and the demand for paying-guest accommodation and houses will always be high. Post-Covid, rentals are said to have increased by a minimum of 25%, and this year, according to realtors, house rentals will increase again by 5-12 %. And the interviews by landlords for homes have gotten tougher than job interviews.
HYBRID OFFICES, HIGH RENTALS
Data that has been released by Anarock Research shows that a 1,000 sqft apartment (two BHK), which comanded a rent of around Rs 27,000 (sans maintenance) on Sarjapur Road, will see rentals increase by about 7-12% this year. The residential areas around Outer Ring Road, Bellandur and Manyata Tech Park, are likely to see the highest rental increases as they house around half a million techies, say realtors. In some areas, rents have increased by a whopping 30-50% as well.
Anarock’s report stated that Bengaluru added just around 13,500 residential units in the first quarter of 2023, an increase of just 3% as compared with a 55% jump in Mumbai. Bengaluru has become the top Indian city for rent yield with 3.9%. There has been an 18% average rental growth in Bengaluru’s Whitefield from 2019 to 2022, while in Rajaji Nagar it was 16% for the same period. In Varthur, the rents have increased by nearly 10% just from January to April this year.
PG ACCOMODATION WOES
While techies are struggling to find good apartments within their budget, paying-guest accommodation in Bengaluru has also seen a rise in rentals anywhere from 25 to 40%. Reports stated that PGs near educational institutions are charging anywhere from Rs 13,000 (triple sharing) to Rs 21000 (single room) per person.
Thanks to the post-pandemic boom, rents have again been increased in the last few months as more students are coming into the city. Since PG accommodation caters to students, apparently students are forced to compromise on space, location or the amenities to ensure that the rent is within their budget. Numerous students have taken to renting out an apartment and sharing the space as it sometimes works out to be cheaper for them.
NETIZENS RANT ABOUT RENTS
On social media, many netizens have been lamenting about the increasing rentals in Bengaluru.
Some netizens stated that there should be a tenants’ union to fight for the rights of tenants in Bengaluru.
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