Why Rentals For Residential Properties In Bangalore On Major Rise?

In the first quarter of this year, Bangalore saw a mere 3% rise in residential units. The city is now the top Indian city for rent yield, with 3.9 %, Market analysts have noted that the recent rise of rentals for residential properties in Bangalore was higher than average due to the pandemic's dramatic impact on the city.


In the past year, Bangalore, India, has seen a remarkable spike in its residential market. According to market research statistics,  property owners in the city now demand higher yields (i.e. the percentage of their property's value as annual rent), beating out Mumbai's financial hub.

The hybrid work style combines working from home and the office and has significantly impacted Bengaluru's housing prices. Thousands of IT professionals and their families, who had evacuated the city during the pandemic and were working remotely from their hometowns, are now returning and searching for rental residential properties.

With property prices also steadily increasing, more people are shifting from buying to opting for rentals. Are you ready to experience a major rental boom in residential properties in Bangalore?

In this article, you will explore the rental housing market in Bangalore and gain an understanding of what it entails. You will also gain insight into the factors leading to the rise of rentals for residential properties in the city. Let's find out more!

Factors Affecting the Rise of Rentals for Residential Properties

 rise of rentals for residential properties

Rent prices vary significantly from one property or neighborhood to the next, making it difficult to find an isometric rental property. Additionally, it is a subjective choice based on circumstances and tastes, Numerous variables affect how much rent you pay each month. Here are the top key factors stated below that have led to the rise of rentals for residential properties in Bangalore:

Location -

The primary determinant of a property's rental rate is location. It establishes the standard, evaluates demand, and aids in determining the appropriate clientele. Setting reasonable rental rates for real estate would be difficult without location. 

When investing in property, it's imperative to be cognizant of the area's pricing ceiling in order to prevent exceeding your budget. A smart investor must be knowledgeable about what to invest in and the financial research required for creating wise decisions about purchase price and location. Location and price go hand-in-hand.

Amenities -

When looking for a rental property, it is crucial to consider the distance from amenities such as medical facilities, schools, fitness centers, parks, restaurants, grocery stores, pharmacies, and clinics. This will depend on your lifestyle and needs. 

If a family wants to be based in a good school catchment area, they should expect to pay a premium rent. The better the amenities and services nearby, the higher the rent. Therefore, convenience often comes at an extra cost.

Transport Facilities -

People are more interested in residential rental properties close to the city center or popular areas that are well connected by roads, metro stations, bus stands, and the airport. 

Large development projects, including metro networks, new transport routes,, master-planned mega townships, or mixed-use developments by reputable developers, frequently raise local property values, impacting rental rates.

Number of Bedrooms -

Bedrooms are a major factor in determining rental rates. Generally, one-bedroom apartments cost less than two-bedroom ones in the same area in absolute terms but more in per sq. ft. terms, thus improving the yields. Thus, the number of bedrooms is important when considering rental prices. 

Depending on what type of market you are in, there is an expected range of rent for each unit size. If your unit has additional features like an extra bathroom or more space, you will be able to charge a higher price due to the extra amenities that other units may not have.

Age of the property -

The age and upkeep of a property greatly affect its rental value. More and better tenants will be drawn to an appealing property. Newer structures in desired areas will likely bring higher rent prices due to the consistent demand. 

Even if the property is older and has been taken care of well, the rental income could remain steady or increase over time.

Why is investing in real estate in Bangalore advantageous?

Bangalore is frequently called India's Silicon Valley and is a reputable and lucrative place to invest in real estate. The real estate market in Bangalore is expected to expand in the years to come, making it a great option for investors wishing to benefit. There are several solid reasons to invest in Bangalore's real estate market:

  • First, as the city's population is constantly growing and there is a continuing need for housing. The city's economy is continually booming as more people move in pursuit of employment and career prospects. This further drives up the demand for rental dwellings.
  • The city is renowned for its advanced network of roads, railways, and advanced medical facilities, which make it ideal for property investors. The city has top-notch highways, railroads, and airports that simplify transportation.
  • Finally, several of India's best educational institutions are located in the city. Some of the most significant cancer hospitals and medical research facilities are also located here. 

Investing in the rental market can be highly rewarding and bring you a great return on your investment. Consequently, it's an excellent option to reside and put money into both business and residential real estate in Bangalore.

Final Takeaway- Where to invest in Bangalore?

Where should you invest in Bangalore then? The housing market is constantly volatile. However, sticking with tried-and-true investments like real estate if you want stability and a moderate return on your money from rental residential properties can be a great idea.

With great investment returns, you can reap the benefits of a beneficial rental market. Secure your future investment now and take advantage of the lucrative rental market in Bangalore today!

Also know about Rise of Residential Property Prices in 2023

Copyright | Address Advisors. All rights reserved.