After a month of gruelling house hunting, Sandesh Gowda finally tracked down a 1BHK apartment in eastern Bengaluru's Marathahalli with an asking rent of Rs 22,000, which he thought was a bit steep. "I tried to negotiate the price but the landlord stopped responding. And within a week, the apartment was rented out for a higher price," he added.
Gowda is one of several tenants in Bengaluru facing the brunt of soaring rental real estate. With rents going up, up and away, several real estate pockets close to the city centre and the IT corridors have become unaffordable.
Rentals in these areas have shot up by 40-50 percent, fostering comparisons with Mumbai's posh real estate sector. However, local brokers say, several areas in parts of the north, south or even the city centre remain affordable, at least for now.
Rentals are affordable but with a catch
Unlike the eastern parts of Whitefield, rentals in the north (close to the IT corridor in Hebbal) have appreciated at a slower rate.
Local brokers say in the outskirts of Hebbal, Jakkur, Hennur and Yelahanka, a 2BHK can be had for a rent of Rs 25,000-30,000 while a 3BHK apartment is about Rs 35,000. Rents for 1BHK flats have increased from Rs 10,000 per month about a year ago to Rs 15,000 per month.
In parts of JP Nagar in southern Bengaluru, larger individual houses have been converted into multiple dwelling units and 2BHKs here rent out for Rs 25,000 a month.
According to Sunil Singh, founder of local real estate brokerage Realty Corps, a Prestige project located on Kanakapura Road is being rented for Rs 40,000, while Brigade Meadows is still available for rent for less than Rs 30,000 each month in the area for a 2BHK.
However, in areas near Manyata Tech Park and the IT corridors in the north, rents have appreciated in a big way, with a 2BHK typically going for Rs 50,000 a month.
The places that remain affordable do not have direct links to the IT hubs or commercial sectors in the city. These areas also lack social infrastructure like malls or even proper healthcare. For example, someone staying in Jakkur has to travel 8 km to Hebbal for shopping in a proper mall, which in "good" Bengaluru traffic conditions would be about 25-30 minutes’ travel.
However, according to Singh, these places are perfect for millennials who have their own vehicle.
Rentals in the city centre is a game of luck
Giving the lie to the notion that real estate in the city’s central business district is out of reach, local brokers say several areas have 2BHKs in the range of Rs 25,000-35,000 monthly rents today. However, luck plays a major role in getting such listings and, moreover, these apartments are mostly older ones.
Singh said that in areas like Frazer Town, Cooke Town, Shanthinagar and Cox Town, such listings come up once in a while. However, located close to prime areas with proper infrastructure available, demand is sky-high for these apartments.
Other places to look at are Rajajinagar, Majestic and also Ejipura for monthly rentals under Rs 30,000 for a 2BHK. However, these places are incredibly congested, especially close to Majestic, the main bus station in Bengaluru.
For Ejipura, a low-lying area, short bursts of rain leave the entire area knee-deep in water, bringing life to a complete halt.
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