According to experts, they witness a bit of price correction in the rental market as inventories continue to be added during April-June 2024.
Price Correction In Bangalore Rental Market
Considering the mad rush for rentals in the last two years, now Bengaluru techies appear to be moving away from the IT corridors towards the city outskirts where rentals are affordable.
The rentals in IT suburbs like Whitefield have come down by at least 15-20 percent year on year (YoY), as per the brokers.
Consider the case of a Bengaluru couple, both working in the IT field in south-east Bengaluru’s Sarjapura.
They decided to move from the prime Sarjapura area into the outskirts, about 5 km away.
Talking about the situation, they said, “We found a 3BHK for about Rs 38,000 rent in the outskirts while rent for 2BHKs in Sarjapura area starts from Rs 35,000-40,000.”
When we talk about the eastern IT corridor, it includes areas such as Whitefield, Hoodi, Outer Ring Road, and Sarjapur Road among others.
Contrary to this, the outskirts include places such as Varthur, Kundalahalli and Channasandra.
These areas have come up on the radar for its more affordable rentals.
Availability Of More Option
This could also be the reason because with more inventories available, prospective tenants have more options available today, compared to a year ago, the experts said.
Prior to this, the real-estate sector in Bengaluru had become a hot seat for auctions, during mid-2023.
This is due to the fact that prospective tenants are bidding hard to get the apartments they zeroed in, as per the media report.
The city saw a rental hike of about 20-40 percent in prime IT corridors during that time.
The Vice President of Realty Corp, Sunil Singh said, we saw a bit of price correction in the rental market in April-June 2024, as inventories continue to be added.
Nearly 8,850 units of total inventories were launched in Bengaluru in Q1 2024 — a 14 percent YoY growth, with Whitefield accounting for almost 35 percent, as per a report by property consultant Cushman and Wakefield, on July 3.
By the end of 2024, Bengaluru will see about 51,685 units being delivered, against approximately 52,565 units in 2023, as per a report by ANAROCK, another real-estate consultant, pointed out.
Singh said, “Today, we see a major cooldown in rental prices in the outskirts of IT corridors like Whitefield. A 2BHK rental in suburbs like Kadugodi, Hoodi, and Channasandra has come down to Rs 30,000-35,000 from Rs 40,000 a year ago. Similarly, we see a major shift in the perspective of the renters who are ready to move away from prime areas due to the hybrid work culture today and also cheaper rents. Also, people who wanted an apartment in Indiranagar now are looking at options in Old Madras Road and KR Puram due to metro connectivity.”
