Bengaluru's rental market has been witnessing significant growth since 2022, fueled by several key factors. With new companies establishing operations in the city, a return-to-office mandate from employers, and an influx of students, the demand for rental properties has surged. The rise in rents has impacted not only professionals but also students and young workers who are increasingly opting for shared apartments over traditional PG accommodations.
Shared apartments have gained popularity among millennials, particularly students and fresh graduates, who are drawn to the greater flexibility, freedom, and privacy these arrangements offer. Unlike PG accommodations, which often come with restrictions such as guest limitations, and fixed meal schedules, shared apartments allow residents to have more control over their daily routines. This autonomy makes shared living an attractive option, despite the higher costs. In shared apartments, occupants typically split rent and utility expenses, making the arrangement more affordable compared to other options.
The trend of students and young professionals sharing apartments has not been without controversy. Many apartment complexes have raised concerns about the large groups of youngsters occupying a single unit, leading to complaints from long-term residents. However, for property owners, these arrangements can be financially lucrative.
A report by property consultancy Anarock highlights that Bengaluru's rental growth has outpaced that of other large Indian cities. Sarjapur Road, for example, has seen rental prices for a 2BHK apartment (around 1,000 square feet) increase from Rs 21,000 to Rs 35,000 per month between the end of 2021 and mid-2024. Typically, annual rent increases range between 5% and 10%, but in the past two-and-a-half years, these rates have doubled or even tripled in some areas.
The rising rental prices have pushed many individuals and families to seek accommodation further from their workplaces, resulting in longer daily commutes. But some property market experts say that with new housing supply gradually entering the market, the steep rental increases that have characterized the past few years may begin to slow down. (With TOI inputs)
Shared apartments have gained popularity among millennials, particularly students and fresh graduates, who are drawn to the greater flexibility, freedom, and privacy these arrangements offer. Unlike PG accommodations, which often come with restrictions such as guest limitations, and fixed meal schedules, shared apartments allow residents to have more control over their daily routines. This autonomy makes shared living an attractive option, despite the higher costs. In shared apartments, occupants typically split rent and utility expenses, making the arrangement more affordable compared to other options.
The trend of students and young professionals sharing apartments has not been without controversy. Many apartment complexes have raised concerns about the large groups of youngsters occupying a single unit, leading to complaints from long-term residents. However, for property owners, these arrangements can be financially lucrative.
Bengaluru rentals surge
The surge in rentals can be attributed to multiple factors. Bengaluru has seen a sharp rise in the number of global capability centers (GCCs) of multinational companies, which have created new job opportunities in the city. At the same time, many companies are now asking employees to return to the office, moving away from the remote work model that became popular during the pandemic. This increased demand for in-city accommodation has driven rental prices higher, particularly in areas close to IT corridors such as east Bengaluru and the northeastern parts of the city.A report by property consultancy Anarock highlights that Bengaluru's rental growth has outpaced that of other large Indian cities. Sarjapur Road, for example, has seen rental prices for a 2BHK apartment (around 1,000 square feet) increase from Rs 21,000 to Rs 35,000 per month between the end of 2021 and mid-2024. Typically, annual rent increases range between 5% and 10%, but in the past two-and-a-half years, these rates have doubled or even tripled in some areas.
The rising rental prices have pushed many individuals and families to seek accommodation further from their workplaces, resulting in longer daily commutes. But some property market experts say that with new housing supply gradually entering the market, the steep rental increases that have characterized the past few years may begin to slow down. (With TOI inputs)
