Bengaluru, India's I-T capital, now has the nation's most sought after residential market thanks to rents that have nearly doubled since the beginning of last year.
According to market research data, landlords in the city now demand the highest percentage of the value of their property as rent, surpassing Mumbai.
Over 1.5 million people call the capital of Karnataka home, including employees of multinational corporations like Google, Amazon.com, Goldman Sachs Group, and Accenture Inc. Rents dropped as a result of employees leaving the city or moving to remote locations during COVID-19. Due to the recovery of Bengaluru's economy and private sector, landlords are now in a seller's market as they attempt to make up for missed income, reported business line.
According to Prashant Thakur, Head of Research at the real estate consulting company Anarock, the rental market is currently "too hot." "During Covid, many people returned to their hometowns, so apartments had to be leased out at extremely low rates. Since individuals are returning to work, landlords are raising rent to make up for their losses.
According to Anarock's data, rents have increased by double digits in a number of Bengaluru neighbourhoods since 2019, mirroring a larger increase in all of India's main cities. However, Bengaluru's more recent cost rise is greater because it was more severely affected by the pandemic, as per the business line.