A Noida-based techie, who moved to Bengaluru a year ago, recently made headlines for a social media post tied to his present accommodation that went viral. Ashish Jha, who goes by the handle @the_dream_saver on microblogging site X, revealed that he is paying a whopping ₹80,000 for his 3BHK apartment in the city.
“The 80k rent in @peakbengaluru is so worth it at times,” Jha wrote in his post, alongside a picture of the view from his 19th floor apartment in Binnipete.
Besides monikers like the Silicon Valley of India, startup hub and a pensioner’s paradise, Bengaluru has also earned infamy in recent years for its rental housing market. Reasons range from inflating property rents to enormous security deposit clauses and eccentric demands from landlords.
Also Read: Noida man’s post on paying ₹64,000 as rent sparks disbelief: ‘More than Bangalore!’
“Bengaluru has a price-to-rent ratio of 24, which is relatively lower compared to other top Indian cities, indicating higher rental returns,” said Vikas Wadhawan, Group CFO, Housing.com and PropTiger.com.
Price-to-rent ratio is calculated by dividing the purchase price of a property by its annualized rental income. It gives homebuyers a metric to determine whether it is cheaper to buy a property or rent it. The lower the ratio, the more favourable is the environment for buying a home over renting.
If you are someone moving from Noida to Bengaluru, here are five things you should know about the city’s residential ecosystem.
1. Prepare to loosen your purse strings
According to a report by property consultancy Anarock, Bengaluru recorded the highest quarterly surge in housing rentals amongst the top-7 cities in India during the first quarter of 2024, at 8%.
On an annual basis, average monthly rent in north Bengaluru’s Thanisandra grew 6% to ₹20,000, data sourced from proptech unicorn NoBroker showed. In the popular residential neighborhood of Koramangala, in southeast Bengaluru, average rental value increased 5% year-on-year to ₹28,000. Meanwhile in HSR and Electronic City, they grew 4% and 3%, respectively.
This can be attributed to a demand-supply mismatch, especially post the pandemic as companies call employees back to offices, experts say. Additionally, rising disposable incomes and home purchase aspirations amongst the salaried upper class have increased residential demand in Bengaluru.
Also Read: Bengaluru, landlords call the shots as techies fight for flats
According to Anarock, between 2022-end and the March quarter of 2024, prime locations in Bengaluru saw rental hikes to the tune of 40% and above.
Compared to central Bengaluru, areas in northern, northeastern and eastern parts of the city including Yelahanka, Hebbal, ORR, Marathahalli, Whitefield and Bellandur offer more affordable housing options, said Wadhawan.
Furthermore, for those looking to rent newly constructed properties or modern apartments in high-rises amid gated societies, peripheral areas such as Whitefield in east Bengaluru and Electronic City in the southern part of the city are likely to be a convenient bet.
As per NoBroker, average rent in Whitefield grew 4% annually to ₹28,000 while Electronic City recorded a 3% year-on-year growth to ₹19,000.
2. No demand is too strange in this landlord’s market
In a city starved of rental properties, landlords call the shots. From demanding resumes to income records and email approvals for guests to stay over, besides other stringent curbs on eating habits and housing pets – Bengaluru’s landlords have taken prospective tenants by surprise, time and again.
In several instances, due to surging demand for a particular property, landlords have auctioned off their property to the highest bidder, in which case the rent amount is significantly higher than initially stated.
Also Read: Fans’ ‘Looking for 2BHK in Indiranagar’ placard at RCB vs DC match goes viral, people say ‘Peak Bengaluru Moment’
3. Security deposits likely to burn a hole in your pocket
In contrast to the common practice seen in Noida, of a security deposit amount equivalent to 2 months of rent, average safety deposit amounts in Bengaluru vary between 5-10 months of rent, as per data shared by NoBroker.
A 29-year-old working professional who is looking for an unfurnished 1BHK property to rent in the city zeroed down on a potential option in northeast Bengaluru’s Kasturi Nagar at ₹15,000 per month. However, the security deposit requirement of ₹90,000 is a major obstacle, the individual said.
“It’s easier to just buy a house. Landlords ask for so much deposit that I chose to use that money for down payment instead,” a Reddit user wrote.
However, this play is not devoid of room for negotiation, albeit limited, local brokers and tenants said.
4. Leverage your social media game
Professionals who shifted from Noida to Bengaluru in recent times, attested to the availability of helpful options for rental properties in the city on dedicated social media groups. Moreover, Bengaluru is amongst some of the most popular cities on online real estate search portals, offering a robust mix of options.
“Look at social media groups, they are the best way to find a property in Bengaluru. It is easier to find pre-occupied properties with 1-2 vacancies, rather than looking for a private place. They open up a lot more options,” said Jha in a conversation with HT Digital.
5. Namma city prone to water shortage and traffic woes
Starting mid-March, the capital city of Bengaluru faced a nearly three-month long acute water shortage due to depleted water levels resulting from a weak monsoon last year.
Also Read: Bengaluru water crisis: Has it impacted real estate sales?
Peripheral areas on the city’s map bore the maximum brunt of the water crisis, with Bengaluru East amongst the worst hit neighborhoods. Some of Bengaluru’s IT and business hubs such as Whitefield, Marathahalli, KR Puram, Mahadevapura and Bellandur, among others, fall under this zone.
However, this has not impacted housing demand in these localities. Monthly rentals in Whitefield have increased by 7-10% since the extension of the purple metro line, NoBroker said.
Wadhawan agreed. Despite being prone to flooding, water issues, and connectivity troubles, the demand for rented houses, PGs and homes for sale has risen in these areas, he said, crediting their proximity to offices.
Lastly, amid a growing population and inadequate infrastructure, traffic congestion at peak hours is a common sight in Bengaluru. It is usually a close tussle between willingness to pay higher rent in neighborhoods surrounding offices or along the metro corridors versus long commute hours to work, depending on one’s priority.
