Home rents in gated communities across Bengaluru are on the rise, increasing by up to 40 per cent, according to a report by proptech unicorn, NoBroker.com. The report revealed that the price rise has been triggered by high demand for apartments in gated residential societies.
Rapid urbanisation took place in IT cities such as Bengaluru and Pune in the past two years. On the other hand, tenants also prioritise safety, security, and convenience offered by gated residential societies. Listings in gated societies are in such high demand on the platform that almost all properties get rented out within 5-6 hours, especially those located in East Bengaluru or close to the IT corridor.
In Adarsh Palm Retreat, Bellandur, 3BHK apartments with monthly rent in the range of Rs 45,000-55,000 in 2021 are now attracting monthly rents of Rs 65,000-75,000. Similarly, 2BHK apartments in another gated society, Raheja Residency, in Koramangala are now attracting a monthly rent of Rs 50,000-55,000, as opposed to the Rs 35,000-40,000 that they fetched just a year ago.
The average rental yield for such properties along areas such as the Outer Ring Road and Sarjapur Main Road has also registered a significant increase, growing to 4-5 per cent as compared to the 2-3 per cent that they secured before the pandemic.
Amit Kumar Agarwal, CEO and co-founder, NoBroker.com, said, “Gated societies have always been a preferred choice for most people due to the conveniences they offer. But given the fact that construction activity came to a grinding halt during Covid, the supply of new constructions has not matched up to the demand. Traditionally, rents increase by 7-8 per cent in a year. But this year they have increased from anywhere between 15 per cent and 40 per cent.”
“What is most interesting about this trend is that it is not a localised phenomenon but one that is playing out across all major cities in India. More and more urban residents now value their living experience over other considerations such as affordability,” he added.