Updated February 10th, 2024 at 08:46 IST
In Bengaluru, What's Triggering Unprecedented Hike in 1BHK Rentals | Details Here
Sources revealed that monthly rent cost at least Rs 30,000 in areas including Sarjapur Road, HSR Layout, and Indiranagar.
Bengaluru: The prices of one-bedroom rental properties in the tech city are skyrocketing owing a steep contraction in inventories of two- and three-bedroom homes. The high demand has also led the landlords to increase the rents of the properties. The city has witnessed a rise of over 25 per cent rent in less than a year.
According to sources, current rental yields in the city for one-bedroom properties have soared to 4-6 per cent at many locations. Rental yield is the income generated by a rental property relative to its value.
What's causing unprecedented hike?
Sources revealed that monthly rent cost at least Rs 30,000 in areas including Sarjapur Road, HSR Layout, and Indiranagar. These were among the steepest price escalations in the recent past.
Strategic location: The high rents of one-bedroom properties are also driven by the strategic locations of these structures near the commercial establishments.
Work from Office: What else is leading to the price rise is the return of office goers to offices after the COVID outbreak as they are opting for one-bedroom sets due to its easy maintenance and cost effectiveness. With the reopening of offices, many returning employees are opting for one-bedroom rentals due to their cost-effectiveness and easy maintenance.
Demand-supply gap: A notable uptick in rental price is also a result of difference in configuration between the one-bedroom and two- and three-bedroom properties as it creates a demand-supply gap, leading to soaring prices.
Published February 10th, 2024 at 08:37 IST