Bengaluru Rental Market Booms: East And North Areas Record Maximum Appreciation

Spread the love

Bengaluru‘s real estate market has witnessed the highest rental growth among seven major cities in India, according to a report by property consultant Anarock. The report highlights that north and east Bengaluru have seen a surge in rental demand, resulting in up to 24% appreciation in average monthly rent for a 1,000-square feet two-bedroom apartment in the last year. In particular, Thanisandra Main Road and Marathahalli-ORR in Bengaluru recorded the highest residential rental growth of 24% year-on-year in the January-March 2023 period for a standard 2BHK home of 1,000 square feet area.Ā 

The report also states that the increase in rental demand and prices are due to a combination of factors. The pandemic resulted in huge investments in the IT sector and startups in Bengaluru, resulting in increased demand for housing. Simultaneously, the lockdown restrictions limited the building supply. As offices started to open up and people started moving back to tier-I cities, theĀ demand for housingĀ spiked, leading to a disparity in supply and demand, especially in tier-1 cities in Bengaluru.

The average monthly rental for a standardĀ 2BHK homeĀ of 1,000 sq ft in Thanisandra Main Road increased from Rs. 21,000 per month in Q1 2022 to Rs. 26,000/month in Q1 2023. Similarly, at Marathahalli-ORR, average monthly rentals increased from Rs. 22,500/month last year to Rs. 28,000/month in Q1 2023. Currently, Bengaluru has the highest rental yield of 4.1% among all major cities, followed by Mumbai with 3.9%.

The report further states that the surge inĀ rental demandĀ and prices is not unique to Bengaluru, with Pune’s Hinjewadi, Baner and Wagholi markets, witnessing rental value growth of 19%, 15%, and 13%, respectively. In Chennai, Pallavaram, Perambur, and Oragadam saw rent values grow by 16%, 10%, and 11%, respectively, while Sohna Road in Gurugram, Sector-150 in Noida, and Dwarka in Delhi saw rental value growth of 13%, 15%, and 10%, respectively.

Overall, the report suggests that the increase in rental demand and prices is due to a combination of factors, including limited building supply and increased demand for housing, particularly in the IT/ITeS belt of Bengaluru. As such, Bengaluru’s real estate market remains an attractiveĀ investment opportunityĀ with a high rental yield.

source : timesproperty

Be the first to comment on "Bengaluru Rental Market Booms: East And North Areas Record Maximum Appreciation"

Leave a comment

Your email address will not be published.


*