Bengaluru: Rising house rents hint at rapid return-to-office trend

The 10% hike is reported by South Bengaluru realtors, while those in the core areas said landlords are hiking rents by as much as 30%

House rent in the city has seen a 10 per cent rise in the last few months after companies began calling back their workforce to office.

Realtors say rents are picking up after a steep drop during the pandemic when people left for their hometowns.

“With most of the sectors reopening, people are returning. Hence, the demand for rented homes has increased. Seizing the opportunity, property owners are also demanding better rents,” said Balaji R, proprietor of Victory India, a property management agency.

The 10 per cent hike is reported by South Bengaluru realtors, while those in the core areas said landlords are hiking rents by as much as 30 per cent.

“The increase is evident in core areas. Though there is a rise in rentals in the outer areas also, many are now opting to move to outer areas owing to the cheaper rates.

“For instance, those who preferred houses near the metro stations are now opting to move to the interiors where rents are affordable,” said Pradeep M, a realtor who operates in South Bengaluru.

Despite the rise, the rental market is not back to the pre-Covid times. “There is definitely an increase in rentals and the demand for rented houses, but the market is yet to return to pre-Covid times,” said Gopalaiah K, a broker and property manager operating in Rajajinagar.

Hike in PG rentals

Besides rented houses, Paying Guest (PG) accommodations are also rapidly filling in over the last few months. The ones that were totally empty at the peak of the pandemic are 70 per cent full.

“We have seen a 70-80 per cent recovery as many of them have started coming back. Though the cost of living has gone up by at least 10 per cent, we have offered the accommodations at the pre-Covid rates,” said Sukhi Seo, secretary, Bengaluru PG Owners’ Association.