Bangalore: residential housing
and apartment rentals in the city have increased by 5%-10% over the past 6-12
months. After a lull during the peak of the recession, the city is now abuzz
with increased economic activity and job creation that are fuelling demand for
rented properties.
Veer Tomar , ceo, Therealestate.in said growing job
opportunities here are causing residential rents to rise.
Though the city's it sector has
been the main driver for economic activity, related industries that support it
have also seen growth. The city is also home to manufacturing giants like
bosch, toyota and government establishments like beml which are all in growth
and hiring mode. Karnataka receives the second highest flow of foreign
investments in the country, a large chunk of which comes into bangalore.
Abdullah added that though
rentals have increased since the recession, they have not breached levels seen
before the recession. Farook mahmood, who owns silverline realty, said apartment
rentals especially in peripheral areas have been less affected because of
substantial supply.
A good 2Bhk Apartment
for rent in Bangalore indiranagar
now has a monthly rental of rs 20000 - rs 25,000, while a three-bedroom
apartment is rs 40000 - rs 50,000. Independent houses in hsr layout cost up to
rs 45000 - rs 60,000 monthly.
Gerald suresh, who runs real
estate consulting firm ground realities, said certain parts of the city
such as north bangalore have seen a sharper rise in rentals due to proximity to
the airport. Some areas like sarjapur road, koramangala and yelahanka have also
seen a significant hike in rents due to low supply of residences.
"the low availability of
residential spaces adds to increase in rates in south bangalore," says
dennis anand, who runs value multiplier property consultants.
The city is also now home to a
huge migrant population who have come here for education and jobs. Moreover,
with bangalore emerging as the silicon valley of the east, the influx of
foreign nationals and nris has also propped up rentals in premium areas like
lavelle road and koramangala.
Some analysts say the
inflationary conditions are also contributing to a rise in rentals. With the
rise in the average cost of living with higher prices of household goods and
other utilities, landlords are now seeking a further hike in rentals.
