Bangalore Witnesses Rise in Rental Values

Bangalore: The real estate market of Bangalore is observing steady demand in rental segment against sale-purchasing over the past few months. “There has been a remarkable increase of more than 30 per cent in the rental transactions in comparison to capital market,” according to Ashwin Kumar of AK Constructions, reports Nidhi Vashisth of MagicBricks.com.

In July-September quarter, the city has witnessed a growth of 20 percent in rental values and the values are still appreciating. Regions like Sarjapur Road, Kanakpura Road, Whitefield and Mysore Road have witnessed 15 to 18 percent rise in rental values during the same time period, said Kumar.

The growth in IT sector has increased job opportunities in the city, resulting in more number of professionals are making their shift to the city from different places. And these immigrants are the majority who looks for rental accommodation. Adding to it, delay in project is also fuelling the steady increase in rental values as there is less availability of ready-to-move-in apartments, added Kumar.

“Owing to rising price of projects that are nearing completion and launch of new projects at above the market’s average price, rental segment is preferred over sale-purchase, by end-users,” said Ramesh Sharma of Welworth Properties.

Nowadays, developers are launching maximum number of new residential apartments in city outskirts, which is creating problem for immigrants to travel. However, the apartments situated in prime locations like Hosur Road, Bellary Road, Indira Nagar, MG Road, to name a few are quoting high rental prices. Also, rental amount in such areas are getting revised by over 10 percent after each renewal, added Sharma.

The rental value for an average two bedroom apartment in Bangalore’s premium location that is nearby Central Business District (CBD) area, ranges from 18,000 to 35,000 per month. And, the rental amount for ready-to-move-in apartment in far flung areas ranges from 8000 to 15,000 per month. The rental segment in the city is catching up growth and investors and home owners who have put their properties on rent are earning handsome amount per month. With the development in IT industry and healthy number of professionals pouring into the city, this rental trend is expected to grow further.