Bengaluru house rentals rose about 30% in 2023, highest among all metros: Reports

Source: Livemint 

The house rents in Bengaluru experienced the steepest in 2023, compared to other metro like Mumbai, Hyderabad, and Pune, Moneycontrol quoted independent surveys as saying.

According to No Broker's Real Estate Report 2023 and consultancy firm Anarock, Bengaluru’s prominent areas soared by over 30 percent in 2023.

In its report, No Broker noted that seven percent of Bengaluru and Mumbai's landlords hiked rents by over 30 percent in 2023, adding that 52 percent of the landlords surveyed in Bengaluru rely completely on their income from rents.

While Anarock's report noted Bengaluru, Hyderabad, and Pune have seen maximum rental hikes in the first nine months of 2023, added the Moneycontrol report.

A standard 2BHK flat of about 1,000 square feet area in Bengaluru’s Whitefield witnessed rents hike by 31 percent while rents for such homes in Sarjapur increased by 27 percent.

“With more people entering the city, and fewer spaces available, rents have gone up in Bengaluru. In 2023, the Indian real estate sector witnessed robust growth in terms of increasing demand for property buying, surging rentals, and soaring property prices, especially in Bengaluru," Times of India quoted Saurabh Garg, co-founder and chief business officer of No Broker as saying.

However, he added that the gap between demand and supply would eventually reduce and result in a more controlled increase in rents.

Anuj Puri, chairman of Anarock Group, was quoted by the New Indian Express as saying, “We may now see rental values begin to stabilize in most cities in the ongoing quarter as renting usually remains low in the last quarter of the year… Rents will once again build up steam when renting picks in the January to March period as this is when Indians usually relocate for better job opportunities amid increased hiring in the new financial year."

The firm added that the rise in rents in other cities such as Delhi NCR, Mumbai, Chennai, and Kolkata has been between 9 percent and 14 percent.