With most of the housing projects still under construction, the increasing demand for residential space in the city has led to skyrocketing rentals in most areas.
According to a study conducted by industry experts, the city has witnessed a 11 per cent increase in rentals and areas like Whitefield, Sarjapur Road and Sanjay Nagar have recorded a steep increase in rents.
While a fully furnished 3BHK flat was available for Rs 17,000-22,000 in whitefield in 2011, this year brokers in the area claim there is not a single flat/apartment that is renting out for less than Rs 30,000. “The area has developed and techies who work here have realised that renting a house here is much cheaper. This is why a huge set of IT professionals who earlier lived in Koramangala, Indiranagar and Domlur have moved closer to office,” said Srinivas Rao, a broker.
Upendra from All Star Realty consultants operating in Bangalore East said, “Earlier, the rent for a 2BHK in Sanjaynagar was between Rs 3,000 and Rs 6,500 as the main crowd was from Ramaiah College. Now, since many students and young working professionals have realised the economic nature of rents here, they are moving. There is huge demand, so prices have shot up drastically.”
The reason for this increase, estimate industry experts is the acute shortage of apartments. “Most of the apartment complexes are now under construction and they will be ready only by the end of 2013. This is when the prices will stabilise,” said Ganesh Vasudevan, CEO, www.IndiaProperty.com.
Further, a recently concluded study by www.99acres.com showed that the rental yields in Bangalore have been steadily growing and this trend is expected to remain constant over the next 15-18 months.
“The rental appreciation in Bangalore is an indication of the interest in localities in Bellandur, Electronic City and Sanjaynagar over the last couple of years due to a certain hype created around these and most recently due to the connectivity getting better. This increased interest and the shortage of supply in new apartments has fuelled the increase in rental rates,” explained Vineet Singh, Business Head, www.99acres.com.
He further estimates that in the short term, these rental rates will increase and should stabilise towards the end of 2013 when some of the large projects get handed over.
People aiming at renting out space in these areas are even more worried. “From here on the prices will only go up as Whitefield is no more a suburb. It is becoming an important part of Bangalore. We have rented out a 3BHK for `35,000 and almost 7-8 of us stay here. We work close by and its convenient but rents here are increasing by the day,” said Jay Kumar, a techie working in the area.
Gautami, a resident of Sanjaynagar said, “This is the one area that has recorded a shocking increase in rents. We rented out a 2BHK for around Rs 4,000 two years ago. Today not even a 1BHK or a single room is available for that price. Our rent has increased by almost twice because of sudden interest in the area.”