Moving to Bengaluru? Here's where you can still find affordable apartments for rent

The 12 months leading up to October 2023 saw an average jump of 30-40 percent, however, local brokers say the prices have jumped 10-15 percent since October 2023 itself.

Landlords in Bengaluru are riding the boom of their lifetime as tenants trip over each other to book apartments in the city which is witnessing a sharp decline in available rental apartments.

The 12 months leading up to October 2023 saw an average jump of 30-40 percent, however, local brokers say the prices have jumped 10-15 percent since October 2023 itself.

Bengaluru's real estate sector is majorly driven by two factors - the migrating floating population and the booming IT sector. This comes at a time when offices have opened up - with millennials and Gen Zs constantly moving into the city with a new job or in search of one.

However, according to real estate experts, a shortage of inventories and continuous high demand have led to the rental market going into a frenzy.

According to data from ANAROCK, in Q3 2023, Bengaluru's share in the available inventory across the country accounted for 8 percent or 49,300 units. Notably, the available inventory in the city experienced a 3 percent decline quarterly and a more significant decrease of 16 percent compared to the corresponding period last year.

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Sub Editor|Moneycontrol

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"Today, most parts of Bengaluru are unaffordable for real estate rentals. Someone coming to the city will have to shell out at least Rs 20,000 monthly for 1BHK and Rs 30,000 for a decent 2BHK," Sunil Singh, Director of Bengaluru-based Realty Corp said.

Finding affordable 1BHK in city centre is challenging

A decent 1BHK apartment inside gated societies close to the city centre, like Koramangala, Whitefield, Indiranagar, and HSR Layout, currently commands a rate of at least Rs 35,000 monthly. A 2BHK in these areas will be starting from Rs 40,000 every month.

"However, if someone is looking for affordable rentals within the city centre, they can look at areas like Cox Town, Cooke Town, Banaswadi, Lingarajpuram and Frazer Town," Singh added.

A standalone 1BHK in these areas starts at Rs 20,000-25,000 monthly and a 2BHK commands about Rs 30,000-35,000 depending on the location and property. For apartments in gated societies, according to Singh, prices shoot up again.

Outskirts are still affordable, picking up

According to local brokers, the outskirts of Bengaluru continue to remain affordable, compared to the city centre.

Places like Electronic City in the south, Hebbal in the north and the outskirts of the eastern IT corridor have become smaller real estate pockets growing gradually.

A 1BHK in these areas can still be rented out at Rs 20,000 monthly for gated societies and Rs 15,000 for standalone apartments.

A 2BHk in these areas, however, still commands a rental upwards of Rs 30,000 monthly. The inventories inside gated societies can even go up to Rs 40,000 per month.

"In places like Hebbal, a 2BHK that was renting out at Rs 25,000 per month about six months back is now being quoted at Rs 35,000 per month. That is how fast the outskirts are growing today as a real estate hub," Singh said.

However, while the outskirts can be affordable, commuting to the city remains challenging in the notorious Bengaluru traffic. The operational metro lines in Bengaluru have been most sought after by tenants looking for an apartment, Singh added.

The recently launched Krishnarajapura (KR Pura)-Whitefield metro line travels across the Old Madras Road connecting most of the major tech parks in Whitefield.

As a result, several micro areas like Hoodi, Nallurahalli, and Hope Farm close to the metro line, have become growing real estate pockets in the eastern suburbs, providing relocation opportunities for the large number of techies who commute there daily.