Bengaluru: House rent increases in tech corridors as offices reopen
What's the story
As techies return from their work-from-home routine to rejoin offices, a new problem awaits them - increased house rent in and around the tech zones in Bengaluru. Realtors say the reason that the residential rents in the city are up by 15-30% is due to high demands as more and more people are returning to a work-from-office routine.
Magicbricks report
Report reveals 10.8% rise in average rent in a year
As per one Magicbricks research report, there has been an increase of 10.8% in average rent in 2022, as compared to 2021. Unfurnished 1BHK flats in tech park areas range between Rs 7,500 and Rs 31,000 per month. It ranged from Rs 8,000 to Rs 58, 000 for 2BHKs and from Rs 12,000 to Rs 1 lakh for 3BHKs.
TOI report
Techies report exorbitantly higher rents
Many techies looking to relocate, according to a Times of India (TOI) report, found out that the rents of apartments that were being offered for a certain price in 2020 are now available at exorbitantly higher rates. According to a techie, a 2BHK flat in Domlur, which was available for Rs. 20,000 in 2020, is now asking for Rs. 30,000.
High demand
Landlords breaking their in-principle agreements for higher bidders
Several people looking for rental housing near the city's IT corridors have also discovered that landlords who had previously agreed to rent out their properties are now breaking their word on finding a higher bidder. According to brokers, due to increasing rents, the security deposit amount, which was formerly equal to ten months' rent, has now been reduced to six months or less.
2023 expectations
Expect rents to rise more in 2023
Ashish Sharma, the city head at ANAROCK Group, told TOI that residential rentals in prominent markets are expected to go up anywhere between 5% and 10% this year, depending upon location, property, builder type, and other specifications. Some of the most in-demand locations include Whitefield, HSR Layout, Marathahalli, Koramangala, Electronic City, Indiranagar, and Malleshwaram, according to the Magicbricks report.
Rent vs Buy
Renters looking to buy apartments instead of paying high rents
Seven Raj, CMD of Sevenraj's Estate Agency and a member of Bangalore Realtors Association of India, told TOI, "The greatest demand is seen in the 2BHK segment in A-grade apartments with a clubhouse, security, swimming pool, charging a basic rent of around Rs 40,000." He also shared that many were looking to buy 2BHK apartments, to evade paying high rents.