JOIN USB’lore rentals see 11 pc increase
A study by a real estate portal has revealed that rentals for Bangalore have seen a 11 per cent escalation in rentals if one compares rents of a 3BHK residential apartment in Q2-12 (Apr-May-Jun-2012) over Q2-11 (Apr-May-Jun 2011).
Commenting on the same, Vineet Singh, Business Head, 99acres.com said, “The rental appreciation in Bangalore is an indication of the interest in localities such as Bellandur, Electronic City and Sanjay Nagar over the last couple of years owing to a certain hype created around these and most recently due to the connectivity getting better. This increased interest and the shortage of supply in new ready-to-move-in apartments has fuelled the increase in rental rates. In the short term, these rental rates will increase and should stabilise towards the end of 2013 when some of the large projects get handed over.
Steady growth
Most of the other localities have seen an increase in the rental yield in the range of 8-16 per cent and the most important reason could be attributed to the fact that consumers are wanting to move into new projects with better amenities and infrastructure.
“The rental yields in Bangalore have been steadily growing and I see this trend being constant over the next 15-18 months.”
A look at the rentals of a 3BHK house in key localities of Bangalore East shows that the residential areas of Whitefield and Sarjapur Road witnessed maximum appreciation.
Whitefield saw 17 per cent increase in rentals in Q2-12 over Q2-11, while Sarjapur Road saw 12 per cent rise in rentals over the same time period. During the same time, localities of Marathahalli and Old Airport Road saw four per cent increase in rentals respectively.
All localities of South Bangalore saw escalation in rentals. Electronic City has seen the highest appreciation with the rentals moving up by 29 per cent in Q2-12 over Q2-11.
All the three localities of HSR Layout, JP Nagar and Bannerghatta saw rentals increase by 10 per cent in Q2-12 over Q2-11.
Localities in Bangalore North also witnessed increase in rental prices. Sanjay Nagar saw 25 per cent increase in rental values while Hennur Road and Malleswaram both witnessed nine per cent increase in rentals in Q1-12 when compared to Q1-11.