News

Check out market updates

The Bangalore Rental Index Q1 2024 Shows A Devastating Rise

Bangalore Rental Index Q1 2024

The Bangalore Rental Index Q1 2024 Shows A Devastating Rise

The demand for residential rentals in Bengaluru remains strong, but a significant imbalance between supply and demand is causing rental prices to soar. This high demand is primarily driven by the robust presence of the IT sector, a flourishing startup ecosystem, and the city’s increasing popularity. Despite being known as the IT hub of India with a thriving job market, Bengaluru has experienced a notable decrease in the availability of rental properties and a year-over-year decline in demand.

BHK-wise demand and supply:

BHK-wise demand and supply in Bengaluru show a strong preference for 2 BHK and 3 BHK units, which account for 83% of the total demand. A similar trend is observed on the supply side, with these configurations making up 79% of the available properties.

Size-wise Demand and supply :

The majority of demand and supply in Bengaluru is centered on units ranging from 1,000 to 1,500 sq ft. This segment accounts for a significant 52.9% of demand and 36.4% of supply. This indicates a strong preference for mid-sized residential units.

Budget-Wise demand and Supply:

The rental market in Bengaluru is quite diverse in terms of rent brackets, with a significant portion of activity within the range of Rs 10,000 to Rs 1 lakh per month. This range constitutes a major share of both demand and supply. The diversity within this bracket reflects the city’s ability to cater to a wide range of renters. This active segment underscores the dynamic nature of Bengaluru’s rental market. Overall, the rental market remains robust and varied.

At 4.45 percent, Bengaluru’s rental yield is the highest in Q1 2024 followed by Mumbai at 4.15 percent and Gurugram at 4.1 percent rental yields,

There has been a steep rise in rental housing demand in the top cities and rental yields – the annual return on investment (ROI) investors earn from capital invested in a property – have been heading steadily north even as the average rental values have also soared.

Bengaluru’s rental yield in pre-Covid 2019 stood at 3.6 percent, reflecting a growth of 24 percent to date. This increase highlights the city’s robust rental market and its resilience in the face of economic challenges. The improved rental yield underscores Bengaluru’s attractiveness as a rental investment destination.

In Q1 2024, rental prices in Bengaluru’s Sarjapur Road and Whitefield each rose by 8 percent compared to the previous quarter. On Sarjapur Road, the average monthly rent for a 2BHK flat of 1,000 sqft increased from approximately Rs 31,600 in Q4 2023 to Rs 34,000 in Q1 2024. This rise highlights the strong demand in these popular areas. The upward trend in rental values reflects the ongoing attractiveness of these neighborhoods for renters. Overall, Bengaluru’s rental market continues to show significant growth.

BANGALORE RENTAL PRICE TREND:

Conclusion:

 

 

In conclusion, the Bangalore residential rental market showed promising growth in Q1 2024. The city saw a significant rise in rental prices, particularly in key areas like Sarjapur Road and Whitefield, reflecting strong demand. The diverse rental brackets and high occupancy rates underscore Bengaluru’s appeal to a wide range of renters. Overall, the positive trends in rental yields and market activity highlight the city’s robust and resilient rental market, pointing to continued growth and attractiveness for investors and tenants alike.

Views: 7

Leave a Reply

Your email address will not be published.