Bengaluru water crisis worsens the Rental Market around Whitefield IT corridor

Bengaluru’s prevalent water crisis has severely affected the rental yield of 4% around the eastern IT corridor of Whitefield according to the report of local brokers. According to the market experts, most of the large apartments in the eastern part of Bengaluru which are mostly dependent of borewell  water, are tend to face the water crisis. As of now, most of the developers and constructing agencies are eyeing on north and central IT corridors. 

The report says, the prospective families who wanted to take houses on rent near Whitefield, has turned down their decision after observing the situation. One of them told the media “What if next year is hotter and the water crisis becomes a recurring issue, with a depleting groundwater table? It is better to invest in central Bengaluru, where piped water is still available." 

In Bengaluru, piped water from Cauvery river is only available for some areas which are brought under city limits in 2007 continue to rely on borewells. The ground water level is failing gradually, due to overuse.

During February, Chief Minister Siddaramaiah said the ongoing Cauvery Project Phase-5 is set to be implemented by May 2024, and it will provide 110 litres of water daily to each of the city's roughly 12 lakh residents.

The people who stay in rents are looking at parts of central Bengaluru, and also at northern Bengaluru's Hennur and Hebbal areas, where piped water is still available. Currently, a 2 BHK costs Rs. 27,000-30,000 per month in the north, almost 15% lower than prime locations like Indiranagar and Whitefield.

Keeping in mind the rapid construction in Bengaluru, it is quite evident that, the water situation has worsened due to unplanned construction and infrastructure expansion.

VP of Bengaluru-based Hanu Reddy Realty, Kiran Kumar opined that, the water crisis has magnified the  dependence of housing complexes on private water tankers, which now charge a premium. He specified that, the rentals in Whitefield have dropped by 10% compared to January this year.

He also added, "This has increased the maintenance cost of apartment owners in these complexes by at least Rs. 6,000 per month. Indeed, 24 by 7 water supply is the top priority for tenants and homebuyers in Bengaluru today. "Most tenants  ask about piped water supply from Cauvery, even before they discuss the rent, or location. "