The Rental Trends of Bangalore’s Real Estate
The real estate market of Bangalore has witnessing new heights. Places like Banaswadi and Begur Road have already seen high appreciation in terms of sale prices as well as rental values. The following article will discuss about the rental segment of Bangalore’s real estate sector and its fascinating trends.
The Rental Activity and Values
Rental values in Bangalore have witnessed some interesting trends in the quarter ending June 2013. Areas like Koramangla, Yellahanka and Banshankari Stage 2 recorded an increase in rental values. Rents in Banashankari Stage 2 and Koramangla rose by 10% each, whereas Yellahanka saw a 9% boost in rental values in comparison to the previous quarter that ended in March 2013.
The land pockets of Yellahanka and Koramangla are now saturated and the current supply has to service the existing demand. Overall, the rental values are experiencing a fluctuation in prices. And what has been sustaining the development of Koramangla and Yellahanka is their prime location.
A house for rent in Bangalore, especially in an area like Koramangla, can be highly beneficial for those seeking rental properties. The location boasts excellent infrastructure and is strategically located. It offers easy access; most of the main roads in the vicinity have been well developed and are now commercialized.
These factors remain instrumental in driving the growth of residential market of Koramangla. Additionally, since this is an upmarket location, C-level professionals who shift to Bangalore like to take 2 bhk rent houses here. This has led to a prospering rental market of Koramangla.
Areas that Did Not Match Expectations
The rental values of localities such as JP Nagar VII Phase, Cambridge Layout and Kanakpura Road have seen a fall, in contrast to the quarter of January to March 2013. Cambridge Layout and JP Nagar VII Phase recorded a fall of 7% each, while Kanakpura Road saw a 5% drop in rental rates.
Areas like Jayanagar and JP Nagar mainly cater to the traditionally rich classes. These may consist of several expatriates and also Kannadigas coming back home. This category does not mind shelling out extra money for renting a place in a better locality. Even the development in an area like Cambridge Layout has not matched up with the nearby localities. The reason behind the slow growth of this area is the less developed infrastructure plus the buildings in this location are ageing. These factors were the main reason behind the down-valuing of the locality by the expanding IT segment which mainly drives the rental market of Bangalore.
The Quarter Ending September
For the quarter of July to September 2013, the rental market of Bangalore saw improvements in many locations. The area of Banaswadi saw a 25% hike in rental values. Even though this Northern Bangalore area had been lying low for some time, its real estate appreciation has finally come up. Easy connectivity and several IT ventures in and around Banaswadi are the reason behind the prospering rental market here.
An average 800 square feet to 1000 square feet flat with world-class amenities can be rented at Rs. 18,000 to Rs. 25, 000 per month. About six months back these apartments could be rented for just Rs. 12,000 to Rs. 15,000 per month. And yet the rents in this location remain budget-friendly in contrast to other locations of North Bangalore. Places such as Hennur, Hebbal and HBR Layout offer rental properties from a whopping Rs. 25,000 onwards.
Also, during the same quarter, Begur Road has witnessed a climb of more than 150% in rental prices. The location offers a vast variety of apartment sizes starting 690 square feet to 1500 square feet. These apartments are available for rent between Rs. 12,000 and Rs. 30,000 a month.
About the Author:
Devika Arora is an avid writer dedicated to following the current real estate trends and writing articles and blog posts for the benefit of potential investors. The above piece of work analyzes the rental house of Bangalore.