Updated December 17th, 2023 at 17:53 IST
Reasons behind sky-high rentals in Mumbai and Bengaluru decoded
The report outlined that 52 per cent of surveyed landlords heavily depend on rental income, highlighting the crucial role this revenue plays for property owners
Bengaluru: The rental prices in Bengaluru and Mumbai have risen significantly in the past few years, according to a recent report released by real estate portal NoBroker. According to the report, titled as "NoBroker's Real Estate Report 2023," 7 per cent of landlords in both cities have increased rent by 30 per cent or more.
The report attributed the rise in price of rental accommodations in Bengaluru to the heavy dependence of landlords on this source of income. The report outlined that 52 per cent of surveyed landlords heavily depend on rental income, highlighting the crucial role this revenue plays for property owners.
Moreover, 42 per cent of Bengalureans expressed a desire to purchase properties, driven by the prevalent high rental rates in the city. The expansion of the Metro network in the tech capital has significantly heightened the demand for housing along these routes. The enhanced convenience and accessibility offered by this mode of transportation have attracted a growing number of individuals seeking accommodation in their proximity.
Saurabh Garg, Co-founder and Chief Business Officer of NoBroker, pointed toward the Covid pandemic which led to the soaring prices. He highlighted that a brief halt in real estate projects during the Covid-19 disrupted the supply of residential properties. As a result, the influx of people into Bengaluru coupled with limited housing availability has propelled rental prices upward. Garg anticipated that, with time, the gap between demand and supply will narrow, resulting in more controlled price appreciation and rental growth.
The report also unveiled a preference among buyers in Bengaluru for individual houses over flats or residences within gated communities. Approximately 63 per cent of survey respondents expressed a stronger desire of purchasing independent houses. North Bangalore stands out for its remarkable growth, attributed to significant government initiatives and the establishment of industrial zones, particularly in the Bagalur area, facilitated by the Karnataka Industrial Areas Development Board.
Published December 17th, 2023 at 16:59 IST