According to sources, the residential rental units across Bengaluru such as Sarjapur Road, Whitefield, Electronic City, and Bannerghatta Road are dirty and dipped in some places due to the abundance of apartments in the city.
The residential rental units in the IT hub areas, except Kanakapura Road and JP Nagar, have gone down by 2-3% in the second quarter of the year in comparison to the previous year. On the other hand, the rental units in Konanakunte on Kanakapura Road have seen the increase of 9%. This data is according to the data collected from realty portal Magicbricks.
The rents for 2BHK flats in the Electronic City Phase 1 wavered an average at Rs. 18,438 in the second quarter of 2017 and presently has an average of Rs. 18,481. Another location named Kundanahalli’s rental rates decreased by 1.4% to Rs. 22,220. The abrupt decline in the rental rates was about 6% in HSR Layout Sector 1.
It can be inferred that the rentals increased by an average of 5% and that is why there is a 5% annual increase in the rental contracts. According to an official statement by E Jayashree Kurup, the rental yields will remain dirty till the city’s housing market reaches a stage where existing and new rental housing stock is near to demand rental housing.
The rental units in areas like beyond KR Puram have failed to increase. According to information from Real Estate Blogger Farhan Rasheed, it shows the rents on Old Madras Road have remained stagnant. The average rentals in Rs. 17,000 for a 2-BHK flat when compared to Rs. 30,000 in the Whitefield area. Even there was a decrease in sales also. The sales in these Areas increased to just 2% to 13,382 units in the first six months of this year when compared with last year.