The Silicon Valley of India, Bengaluru's housing market became the talk of the town after an image of two boys with a poster that mentioned-'looking for a 2BHK in Indiranagar’ went viral on social media platforms.
In the past one and half years, rents in the tech city have increased sharply, leading the residential market to achieve its peak in the region.
Sudiksha Tripathi, an employee at Accenture, told Business Standard that post pandemic, situation has worsened further, it has become very difficult to find a home of one's choice.
Tripathi, who after a month's hunt, recently shifted from main city to the outer Bellandur of the city on a monthly rent of around Rs 15,000 for 1 BHK, said, "prices have gone up drastically. However, it's not the price that aches, it's the process which pains more. On renting a home for Rs 25,000, tenants have to pay a lump sum amount of security charge, around 1.5 lakhs beforehand."
She said that getting a home in Bangaluru is like clearing a competitive exam with several rounds of interview with the landlords and still not getting a preferred choice.
Like Sudiksha, many others are struggling to rent a proper home at the desired locations.
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When it comes to rental demand and zooming rents, Bengaluru currently stands out among the top 7 cities, with East and North Bengaluru the biggest blips on the rental radar map owing to the IT/ITeS belt there. Whitefield, Sarjapur Road, Marathahalli-Bellandur Outer Ring Road, Thanisandra Main Road and even Hebbal are the clear chartbusters, said Prashant Thakur, senior director & head - research, ANAROCK Group.
According to the Anarock report, Bengaluru’s Thanisandra main road and Marathahalli-ORR saw residential rental values zoom up by 24 per cent each between the first quarter of previous calendar year (Q1 2022) and Q1 of this calendar year (2023).
Average monthly rentals for a standard 2BHK home of 1,000 square feet at Thanisandra main road increased from Rs 21,000/month in Q1 2022 to Rs 26,000/month in 2023. At Marathahalli-ORR, average monthly rentals increased from Rs 22,500/month last year to Rs 28,000/month in Q1 2023, the report highlighted.
The next two hotspots were also in Bengaluru. Whitefield – another prominent IT/ITeS destination - witnessed the 2nd-best rental value growth of 21 per cent in this period, against all prominent localities in the top 7 cities of India.
In Whitefield, the average rents stood at Rs 21,900/month in Q1 2022 and in Q1 2023, had reached Rs 26,500/month, it said.
The third spot was occupied by Bengaluru’s Sarjapur Road, which recorded rental value growth of 20 per cent between first quarter of 2022 and 2023.
Experts are of the opinion that further also, with limited supply but high demand the IT hub will witness rise in rentals.
“We anticipate residential rental values in the IT capital's prominent markets to rise further by anywhere between 5-12 per cent in 2023, depending on the location, property, builder-type and other aspects," Thakur said.
Besides the prominent localities in Bengaluru, rental demand has soared in most cities ever since offices and schools reopened after pandemic. Other cities including Pune, Chennai and NCR have also recorded notable rental values growth in last one year.
In NCR, the top three markets were Sohna Road in Gurugram where rentals increased by around 13 per cent, Sector-150 in Noida which witnessed 15 per cent growth in rentals and Dwarka in Delhi with a rental value growth of 10 per cent.
The recently inaugurated Delhi-Mumbai Expressway’s 160-km Sohna-Dausa stretch is being seen by the developers as the game changer for Gurugram's realty sector.
Sohna has been core hub of both residential and commercial development for some time now as the region entails lower property prices as compared to other micro-markets in Gurugram, said local developers.
Amarjit Bakshi, CMD, Central Park who has Central Park Resorts and some other residential developments in the region, is of the opinion that world-class group housing projects, expat residences, offices, retail destinations, super specialty hospitals, world-class schools & institutions are located on Sohna Road which attract the homebuyers attention.
Bakshi also said that Sohna housing market has the excellent connectivity and access to manufacturing hubs and airports too, which adds further to it's success story.
