Bengaluru Landlords cuts rents amid surge in New-age Rental Options

Real estate agents predict a significant correction in rental rates in 2025, estimated to be between 5% and 10% in the city's most desirable areas.

The rent has stabilized after rising by almost 30% to 40% in some parts of Bengaluru over the previous two years. Experts in the field surmise that the narrowing of the supply and demand ratio gap is the primary cause of the stabilization of rent across the city.

Bengaluru's high-demand areas, including Whitefield, Bellandur, Koramangala, Sarjapur Road, and others, saw unexpected annual rent increases of up to 35% in 2023 as landlords tried to make up for pandemic losses amid a spike in demand as workers returned to their workplaces.

"Rents have decreased by at least 5% in areas like Whitefield, Koramangala, and HSR Layout today. Manjesh S. Rao, Chief Real Estate Officer at BrokerInBlue, told HT.com, "We are closing almost 40 rental transactions monthly now, compared to our previous average of 70."

According to local brokers, the monthly rent for a two-bedroom apartment in areas such as BTM Layout and Sarjapura has decreased from Rs. 40,000 to Rs. 35,000. Right now, 2 BHK apartments for rent in Whitefield's Bagalur neighbourhood are located on the outskirts of the eastern IT corridor and cost less than Rs. 27,000 a month.

The average rental values in most micromarkets increased slightly between the end of 2023 and Q3 2024, as per ANAROCK data; however, the percentage change from 2023 to Q3 2024 is less than the increases seen between 2021 and 2022 and 2022 and 2023.