Bangalore has witnessed a dramatic shift in recent years with record-high rent prices. The place has experienced a boom in its real estate market, leading to a surge in demand for housing and consequently driving up rent costs. The population growth has fueled the demand for housing, exerting immense pressure on the already limited residential space in the city.
Bangalore Witnesses Soaring High Rents
The scarcity of available housing units has provided landlords with an upper hand, allowing them to set higher rent prices due to the overwhelming competition among renters. According to an article by MoneyControl, the 1RK apartments come at around ₹13,000-₹15,000 while 2BHKs are at more than ₹30,000. Even PG accommodations start at a rent of ₹7000 for one bed in HSR Layout, a prime area in the city. Whereas 1RK in HSR Layout shoots up to ₹24,000 per month with almost ₹2 lakh deposit.
While prices in Bengaluru’s suburbs, such as those around Sarjapur, Whitefield, and the southern portions, are still reasonable, those near the city’s heart and the IT corridors have skyrocketed, with some 4BHK listings demanding a monthly rental of ₹2.5 lakhs and a deposit of ₹25 lakhs.
Today, rents in some areas of Bengaluru are virtually as high as they are in the most prestigious areas of Mumbai, such as Worli, Bandra, Juhu, and Versova. The escalating rental costs not only affect the livelihood of residents but also influence the overall economic and cultural landscape of the city.
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Are The Rents Going The Similar Way As Mumbai?
However, according to experts, there are distinctions between the real estate markets in Mumbai and Bengaluru.
In high-demand districts of Bengaluru, such as Indiranagar, HSR Layout, and regions in the central business district, the rental yield has just surpassed 3 per cent and reached 4 per cent. However, Mumbai’s rental yield has remained unchanged at 2-2.5 per cent while capital prices have increased by more than twice as much during the same period.
Moreover, the urban sprawl has seen a massive expansion, and areas that were once outskirts have become prime real estate, further driving up rental costs.
Many professionals, despite earning decent salaries, find it increasingly difficult to afford adequate housing. This situation forces them to settle for smaller living spaces, longer commutes, or shared accommodations, compromising their quality of life.
Cover image credits: Canva