When two men watching an IPL match in a Bengaluru stadium put up a poster saying 'looking for a 2BHK in Indiranagar’, their message about the city’s exorbitant housing market went viral on Sunday.
Rental demand in Indian cities, particularly Pune, Chennai and Delhi NCR, has increased after economic activities resumed when the pandemic started waning. In Bengaluru, rents have increased sharply in the last one and half years.
"However, it's not the price that aches, it's the process. On renting a home for Rs 25,000, tenants have to pay a lump sum amount of security charge, around Rs 1.5 lakh beforehand," said Sudiksha Tripathi, who lives in Bengaluru and is an employee of IT services firm Accenture.
Tripathi searched for a month before she found a one-bedroom home in Bellandur, on the outskirts of the city, for a monthly rent of Rs 15,000. Finding a home in Bengaluru on rent is like clearing a competitive exam with several rounds of interviews with the landlords, she said.
Bengaluru is among India’s seven most expensive cities in terms of housing rent. Whitefield, Sarjapur Road, Marathahalli-Bellandur Outer Ring Road (ORR), Thanisandra Main Road and Hebbal in the Karnataka capital are chartbusters in terms of rent increase, said Prashant Thakur, senior director and head of research, ANAROCK Group, a real estate services company.
According to a report by Anarock, residential rent in Bengaluru’s Thanisandra main road and Marathahalli-ORR increased by 24 per cent between the first quarter of the last calendar year (Q1 2022) and Q1 of this year (Q1 2023).
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Average monthly rental for a 2BHK home of 1,000 square feet at Thanisandra main road increased from Rs 21,000 in Q1 2022 to Rs 26,000 in 2023. At Marathahalli-ORR, average monthly rentals increased from Rs 22,500 last year to Rs 28,000 in Q1 2023.
Whitefield, where many IT/ITeS services firms have their offices, rent grew by 21 per cent in this period, compared to prominent localities in the top seven cities of India.
In Whitefield, the average monthly rent was Rs 21,900 in Q1 2022 and it increased to Rs 26,500 in Q1 2023.
The third spot was occupied by Bengaluru’s Sarjapur Road, which recorded rental value growth of 20 per cent between the first quarter of 2022 and 2023.
“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.
The top three residential markets in Delhi NCR are Gurugram’s Sohna Road, where rental value has increased by 13 per cent; Noida’s Sector 150 where there is 15 per cent growth, and Delhi’s Dwarka with a rental value growth of 10 per cent.
The Sohna-Dausa stretch of the Delhi-Mumbai Expressway was inaugurated recently and developers believe it will be a game changer for Gurugram's realty sector.
Sohna has been the hub of residential and commercial development as property prices here are cheaper compared to other micro-markets in Gurugram, said local developers.