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Unveiling the Future: Real Estate Trends in Bangalore

Bangalore, the bustling metropolis known for its vibrant culture and booming IT industry, is at the forefront of India's real estate evolution. As we step into the future, it's intriguing to unravel the trends shaping the city's real estate landscape, with a specific focus on the growing demand for apartments for rent in Whitefield.

1. Emergence of Sustainable Living:

One of the prominent trends transforming Bangalore's real estate scene is the increasing emphasis on sustainable living. Developers are integrating eco-friendly features, energy-efficient designs, and green spaces within residential projects. This shift aligns with the city's ethos of environmental consciousness. Apartments for rent in Whitefield, being part of this urban evolution, often showcase these sustainable features, appealing to a discerning tenant base that values both modern living and environmental responsibility.

2. Tech-Driven Rental Demand:

As the Silicon Valley of India, Bangalore's real estate trends are intricately tied to the tech industry. The demand for rental properties, especially apartments, is fueled by the influx of professionals seeking accommodation close to their workplaces. Whitefield, with its plethora of IT parks and tech corridors, stands out as a magnet for tech professionals. The apartments for rent in Whitefield cater to this tech-driven demand, offering a convenient and connected lifestyle for those working in the city's thriving tech hubs.

3. Rise of Co-Living Spaces:

With the changing dynamics of urban living, co-living spaces are gaining traction in Bangalore. These innovative living arrangements cater to a diverse demographic, from young professionals to students. Apartments for rent in Whitefield are witnessing the emergence of co-living options, providing shared spaces and amenities that foster a sense of community. This trend reflects a cultural shift towards more flexible and communal living arrangements.

4. Integration of Smart Technologies:

The concept of smart homes is becoming increasingly prevalent in Bangalore's real estate market. Developers are integrating advanced technologies such as home automation systems, energy-efficient appliances, and high-speed internet connectivity. Apartments for rent in Whitefield often feature these smart technologies, appealing to tenants who prioritize convenience and connectivity in their living spaces.

5. Expansion to Outskirts and Peripheral Areas:

As the city expands, there is a noticeable trend of real estate development moving towards the outskirts and peripheral areas. Whitefield, once considered on the outskirts, has now transformed into a thriving economic and residential hub. The demand for apartments for rent in Whitefield continues to surge, driven by the expansion of the city's boundaries and the development of integrated townships offering a mix of residential, commercial, and recreational spaces.

**6. Focus on Affordable Housing:**

Affordable housing remains a key focus in Bangalore's real estate landscape. The government's initiatives and incentives for affordable housing projects have spurred developers to create budget-friendly options. This trend is reflected in the availability of apartments for rent in Whitefield, with a diverse range of rental options catering to various income segments.

7. Enhanced Connectivity and Infrastructure:

Improved connectivity is a driving force behind real estate trends in Bangalore. The city's infrastructure is undergoing significant upgrades, including the expansion of metro lines and the development of expressways. Whitefield, benefiting from these connectivity enhancements, becomes an attractive location for real estate investment. Apartments for rent in Whitefield gain an edge as residents enjoy seamless connectivity to other parts of the city.

8. Evolution of Mixed-Use Developments:

Mixed-use developments, combining residential, commercial, and recreational spaces, are on the rise in Bangalore. These integrated projects aim to create self-sustained communities, providing residents with everything they need within close proximity. Apartments for rent in Whitefield often become part of these mixed-use developments, offering tenants a holistic living experience with access to shopping, dining, and entertainment options.

9. Niche and Luxury Segments on the Rise:

Alongside the demand for affordable housing, there is a growing interest in niche and luxury segments of the real estate market. High-end apartments with premium amenities are gaining popularity among a discerning clientele. Whitefield, being a diverse economic and residential hub, accommodates this trend by offering a range of apartments for rent that cater to various lifestyle preferences.

10. Continued Growth Amidst Challenges:

While Bangalore's real estate trends showcase remarkable growth, the sector is not without its challenges. Issues such as traffic congestion, environmental concerns, and the need for effective urban planning pose ongoing challenges. However, the resilience of the market, coupled with strategic initiatives to address these challenges, indicates a positive trajectory for real estate in Bangalore.

In conclusion, Bangalore's real estate trends paint a dynamic picture of evolution and adaptability. The demand for apartments for rent in Whitefield epitomizes the city's growth story, reflecting the convergence of technology, sustainability, and lifestyle preferences. As Bangalore continues to embrace innovation and progress, the real estate market, especially in areas like Whitefield, remains a focal point for those seeking not just a place to live but an investment in the future of India's Silicon Valley.

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CAN RENTAL HOMES BECOME AN INVESTABLE PRODUCT?

In the last 15 years, rapid urbanisation and exponential growth in employment have enhanced the rental housing domain. Compared to the stock market or even blockchain, real estate has traditionally been a non-volatile asset to invest in over the years. Real estate is always a favoured investment due to its long-term return from appreciation in asset value over the years, with minimal losses. More importantly, it is a physical, finite asset with a steady supply and a high value.

Despite the stagnating phase of vacant homes post-pandemic, by mid-2022, there was a resurgence in rental housing that saw up to a 45% increase in demand for rental homes, with improved rents in Bangalore Central Business District (CBD) areas and suburbs, too, that was at one point considered 'too far off'.

It only drove realtors to keep pace, giving rise to improvised and innovative rental realty, such as co-living, serviced apartments, and BTR (Build-To-Rent). These new-age models are paving new avenues for investments in rental homes. For instance, the BTR concept is betting on improved rental yields by building rent-ready homes that catalyse the tenant-home fit. 

1. THE INDIAN CULTURE OF BUYING/ INVESTING IN 2nd OR 3rd HOMES

For Indians, purchasing a home is an emotional investment or a positive sentiment. Unlike any other financial asset, it is tangible. It satiates the buyer's human psyche, driven by a sense of security from living in their homes.

Whether an established businessperson, a young entrepreneur or a salaried employee, acquiring a residential asset has always been a priority for Indians. Owning a home has become a means of rental income and financial growth, making it a longstanding method of monetary investment with long-term returns.

Hence, home investments attract a large set of buyers for secondary homes, giving them a sense of a better lifestyle, social status, and financial security by renting or leasing these secondary homes. These investments draw a steady cash flow and reap several tax benefits associated with income through house rent. 

In a fluctuating but resilient economy, such as India, and with the culture of joint families and an average of at least two children per family, it is customary to invest in homes to secure their family financially. This legacy continues to the next generations.

Today, millennials with better jobs and disposable income have a growing awareness and inclination for financial growth through passive streams. The career-focused millennials don't want to be dependent on just salaries but are riding the wave of change by dabbling aggressively in Crypto, Stocks and other futuristic products. Millennials consider investing in homes but are discouraged due to high prices, the hassle of maintaining a property, the longstanding challenges of investing in typical rental inventory, and associated disorganisation and malpractices in the real estate business. It pushes them to channelise their investing capacity into other financial products.

2. TYPICAL CHALLENGES WHILE CONSIDERING SECONDARY HOMES AS AN INVESTMENT & WHY OWNERS FEAR RENTING THEIR                FLATS, INCREASING HOME VACANCIES

Buying a home, leave alone a secondary home, isn't something one does every other day. It requires severe considerations and financial planning. There are several hindrances a home buyer faces – finding a well-located property, the lump sum down payment, unpleasant negotiation with demanding owners selling, the horrid task of paperwork, and running pillar to post in government offices. After purchasing the home, an investment product must be made rent-ready. It involves the extended ordeal of finding tenants, furnishing and maintenance, and the corresponding paperwork for tenancy. Deliberations of a prospective home buyer are:

It comes at a hefty price: Homes require financial preparation and funds availability much in advance. A few years into their career, someone may have the liquid cash flow but may not be in a secure position to undertake the financial burden of buying a home, including 25% of the total value of the property, as a down payment. Hence, millennials may see it as something other than a realistic investible option in the early years of their career.

Cost of borrowing: The overall affordability drops for the buyer decreases with the interest rates of loans at 7.5% to 9%, directly impacting the buyer's budget. Against such high-value loans, borrowing becomes a long-term commitment, with the additional stress of paying higher EMIs monthly for a shorter borrowing period. Even when renting out a bought house, the rental yield would be about 1-2% of the total property value, which is still lower than half of the loan's interest rate, making it a stressful uptake.

Immovable assets: A home could become an obligation, given the mobility of people and their jobs. One has to be sure of being anchored to a specific place. Otherwise, they buy a home in one city and move to another if the job demands. The asset alternatively becomes an option to give their house on rent to draw a passive income.

Value Depreciation: Rental incomes may drop as newer properties with modern specifications and facilities come up in the neighbourhood. Depending on where their rented homes are situated (usually away from their primary residence), owners must find ways to manage and run their rental homes remotely or through third parties. Timely renovation, maintenance and repairs, and payment of taxes, to name a few, all of these add to the maintenance overheads, impacting the overall value of the acquisition. On the other hand, secondary homes, majorly bought as a means of investment and secondary income streams, come with their set of pain points, leading to intermittent, if not extended, vacancy periods.

Inventory is not relevant: With progressive changes in the new age tenant's mindset and lifestyle preferences, the owner faces a gap in his expectation of a tenant (for instance, renting to bachelors or spinsters is still a limitation with traditional homeowners, who expect a family to move in). Vice versa, the renter may need help finding it satisfactory to rent an older property with restrictions when other relevant housing options are available.

Rental laws and contract terms: Pro-tenant contracts keep the owner on the back foot, intentionally keeping houses vacant. Fixed margins on rent amounts, fixed tenant occupancy duration, and tenant-owner disputes are seemingly pro-tenant, further discouraging the owner. 

Difficulty in liquidating: A rental property is undoubtedly a reliable source of income, but it is slow and depends on several socio-economic and consumer trends in the long run. Homes are illiquid assets that cannot be sold quickly and liquidated to cash. Due to this inherent risk, and growing rental competition, some owners need help to rent out the house or find a buyer to sell it to at an agreeable price.

3. THE NEW AND GROWING INVESTABLE FINANCIAL PRODUCTS FOR THE MILLENNIALS

With the surge of digital platforms or financial tech, millennials today are well-informed on futuristic products and disruptive digital assets. Over the past 2-3 years, decentralised finance (DeFi) has slowly made its presence felt in India. Apart from real estate and gold, here are some of the trending financial products:

NFT: Non-fungible tokens (NFT) are digitally investible assets based on cryptocurrency's blockchain technology. These 'tokens' can be anything digital; an artwork, a photograph, a tweet or even a scan of one's brain. NFTs allow the buyer to own something unique in its original form that cannot be replicated.

P2P (Peer-to-peer) lending: It is a simple format of financial tech that connects lenders and borrowers directly, allowing them to borrow or lend money without going through a bank. P2P platforms allow users to create accounts and lend money to borrowers depending on their high/low-risk return factors. Its advantage is higher interest rates than banks, regardless of the borrower's credit score. 

Crypto: This is an intangible virtual currency also based on blockchain technology. Crypto derives value from various influential factors such as its limited supply, creating a higher advantage of exclusivity, its growing acceptance as a transactional currency by several companies, and drastic surges and falls that make the chance of much higher returns.

Futuristic products: Metaverse and Web 3.0 are gaining popularity, pushing companies like Spotify and Meta to create digital collectables for investing in the form of NFTs and crypto stocks. Metaverse is a booming virtual universe driven by blockchain that comprises digitised virtual assets such as augmented, virtual reality collectables and even crypto.

4. THE NEW AGE CONCEPT OF BUILD-TO-RENT HOMES IS PROVING TO BE A LUCRATIVE INVESTMENT, PRIMARILY FOR MILLENNIALS,        AND A GREAT PASSIVE INCOME SOURCE

For the new age investor, savings equates to growing their money. Instead of saving a lump sum in a bank account or fixed deposits, the millennial is a savvy retail investor who keeps a keen eye on financial trends. Unlike the previous generation of investors, the new-age tenant is willing to take risks to diversify their spread of investments and sources of passive income.

Last year saw a downhill crash in the crypto market, urging many of its young investors to be more judicious in their choice of investments. Owing to the uncertainty in these markets, the millennial is looking for a low-risk and long, rewarding investment that feels safer to bet on and helps build a long-term passive income without facing the need to sell the asset. Modern rental homes can do this for them since millennials today prefer renting to buying homes.

With this approach, Build-to-Rent properties become a low-hanging fruit for millennials who want to invest in rental realty and reap stable rental incomes. BTR homes gradually become inventory positive (50 to 100 flats or units), which allows its investors scalability, generating rental yields of 5-6% every month, with an annual increment of 3-5%, increasing their rental income significantly.

BTR homes are built specifically for rent, not for sale, promising a greater property and tenant fit - a core differentiator. Therefore, the asset is up-to-speed with new-age tenants' preferences, not only in terms of the design features of these homes but also in terms of amenities and services that ensure optimum tenancy, making the investment cash flow secure.

The beauty of BTR is that although buying into a rental home, the investor doesn't have to be involved with the hassle of renting. The BTR company handles it entirely (from finding a tenant, the paperwork, rent collections, and property maintenance). The investor must only invest and wait for the returns.

5. BTR EFFECTIVELY CATERS TO THE NEED FOR ENVIRONMENT-FRIENDLY AND SUSTAINABLE HOUSING INFRASTRUCTURE

"Green growth" or "Green buildings" is a rising need of the hour, becoming a priority in real estate. Environment-friendly and sustainable living has become more relevant than ever, making organisations and investors conscious about doing business and purchasing. The BTR concept embraces this need through conscience planning and development by integrating technology to reduce impact by monitoring lighting, air conditioning, elevators, and other utility systems.

The BTR model stays ahead by implementing sustainable practices such as integrating a digitised platform that helps eliminate waste from using paper and power. Additionally, with the advantage of developing ground up, BTR homes can remain up to speed with renovations that help maintain a building up to and over sustainable standards.

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5 TIPS TO CONSIDER WHILE LOOKING TO INVEST IN A HOUSE IN BANGALORE - A QUICK GUIDE

The millennial workforce is progressing not only in their careers but also in terms of their goals in life. Many are shifting to Bangalore for their career and hoping for a better future. The mindset has shifted from renting homes, and they now want to invest in 1BHK /2BHK homes in the city or even independent houses. There is a shift in how the new-age resident sees the rental market in Bangalore. They know its value and that there is scope in investing in a house and either staying in them or listing it as a house for rent in Whitefield or any other locality in which they have purchased it.

Several factors go into buying a property. It is not only a significant investment but also a long-term commitment. Certain specifications go into buying a house in a metropolitan city like Bangalore. The following section of the article will mention a few tips for finding the best property to invest in.

5 THINGS TO KEEP IN MIND WHILE LOOKING TO BUY A HOME IN BANGALORE:

As an alternative to seeking a house for rent, individuals can look at a long-term investment in a house in Bangalore with the help of the following tips:

Budget: It becomes essential to assess one's financials and understand if one can pay the loans and other costs of buying a 1BHK or an independent home. In Bangalore, investing in a home is a feasible alternative to getting a house for rent. The various expenses in purchasing a home are purchase value, land tax, parking space, registration charges, and documentation charges. Taking a loan will help with the funds, but the buyer must assess the risks associated with it. Apartments in Sarjapura start at INR 35 Lakhs, while localities like Cunningham Road, BTM Layout, Old Airport Road and Palace Road have 1BHK to 3BHKs starting at INR 1 crore.

Type of home: The next thing to consider is the type of home that not only fits the budget but also is the abode that the buyer has always dreamt of. The most common category of houses available for sale in Bangalore is apartments. The 1BHK/2BHK/3BHK are for millennial buyers who prefer convenience but want a sense of community to purchase an apartment. Buyers wishing for a luxurious private space can look for villas in gated communities.

Locality: The next question that arises is what locality to buy the perfect house. There are many beautiful localities in Bangalore where the millennial buyer can purchase a forever home. Whitefield, Sarjapur, Frazer Town, Magadi Town, Yelahanka, Horamavu, JP Nagar and Koramangala are significant localities to buy a home.

Amenities: It becomes essential for the buyer to discuss with the builder about the available amenities in the apartment/ gated community for them to use. Amenities like grocery stores/supermarkets, gyms and sports centres, swimming pools etc., are a bonus for the residents. The builder would have promised multiple things in their advertisement, which could be real or just a marketing gimmick. The buyer must confirm if it is indeed what is being offered.

Legalities and documents: Buying a home involves crucial procedures like documentation and keeping the right records. Before purchasing a house, ensure the flat/ villa has all the necessary paperwork and government approvals, such as project clearance and approvals from BMRDA (Bangalore Metropolitan Region Development Authority) and BBMP (Bruhat Bengaluru Mahanagara Palike). 

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BANGALORE IN 2023- THE FASTEST-GROWING ASIA-PACIFIC CITY

The real estate and economy in Bangalore is fast-growing. As per Oxford Economics, Bangalore is predicted to be the fastest-growing city in the Asia-Pacific, competing with cities like Tokyo, Hong Kong, and Beijing. Economic growth directly correlates to the rise in demand for houses for rent in Whitefield, Electronic City, and Koramangala. It is a testament to the fact that there is a surplus of IT employees migrating here to work from the office space. In 2022 alone, the city had around 10.6 million square foot A-Grade assets. The growth prediction is exponential.

In the city, areas like Whitefield ranks 3rd amongst the rental localities in the country, with popular gated societies like Maithri Layout and Sathya Sai Layout. The real estate market is extremely dynamic in Bangalore. The city is constantly ranked among India's top real estate investment destinations. Strengthening economic growth has led to a better quality of life and job opportunities. The market is predicted to be stable and will have higher rental yields in 2023. The rapid growth in Bangalore's economy in the upcoming years strengthens the real estate market. The government is also looking to improve the infrastructure and inter-city connectivity.

The rapid economic growth of Bangalore in 2023:

Post Covid-19, India's Silicon Valley has gotten back on its feet and is in full swing. Bangalore is likely to outperform major cities like Beijing this year in terms of economy, with a growth of over 6%. There are many benefits of the rapid economic growth in Bangalore, and the following are a few outcomes of this urbanisation:

Growth in opportunities: The information, communication, and manufacturing sectors in Bangalore will rapidly grow in 2023. It is leading to a rise in work-from-office opportunities due to large infrastructure development. Many individuals from other parts of the country migrate to Bangalore for the same reason. Top IT companies like Amazon, SAP, and Samsung are setting up bases here, further leading to its rapid development.

Rise in Rental Home Demands: The demand for houses for rent in Whitefield in layouts like Maithri Layout and Koramangala in layouts like AVS Layout and KEB Layout is rising due to the migration of individuals from other cities. Due to the rapid demand for housing, there is an increase in rental rates by 12%. The landlords are trying to meet the surge in demand and simultaneously trying to overcome the pandemic losses. The tenants looking for houses are willing to pay the rental price to fulfil their immediate need for a home. Most tenants are looking for 1BHKs or sharing apartments near their workplace. The city has good transportation connectivity like Metro, BMTC buses, and road connectivity, which are the top attraction factors for tenants to rent homes in the city. It allows them to travel to their workplace easily, which is often an element of concern.

The Climb in Interest of Investors: The economic growth in infrastructure and transportation has increased the interest of investors in the IT sector and manufacturing sectors. Apart from them, even residential real estate investors are interested in the Bangalore market. The city is ideal for Information Technology and Manufacturing Industries as there will be more migrants moving in for prospective job opportunities.

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BANGALORE IN 2023- THE FASTEST-GROWING ASIA-PACIFIC CITY

The real estate and economy in Bangalore is fast-growing. As per Oxford Economics, Bangalore is predicted to be the fastest-growing city in the Asia-Pacific, competing with cities like Tokyo, Hong Kong, and Beijing. Economic growth directly correlates to the rise in demand for houses for rent in Whitefield, Electronic City, and Koramangala. It is a testament to the fact that there is a surplus of IT employees migrating here to work from the office space. In 2022 alone, the city had around 10.6 million square foot A-Grade assets. The growth prediction is exponential.

In the city, areas like Whitefield ranks 3rd amongst the rental localities in the country, with popular gated societies like Maithri Layout and Sathya Sai Layout. The real estate market is extremely dynamic in Bangalore. The city is constantly ranked among India's top real estate investment destinations. Strengthening economic growth has led to a better quality of life and job opportunities. The market is predicted to be stable and will have higher rental yields in 2023. The rapid growth in Bangalore's economy in the upcoming years strengthens the real estate market. The government is also looking to improve the infrastructure and inter-city connectivity.

The rapid economic growth of Bangalore in 2023:

Post Covid-19, India's Silicon Valley has gotten back on its feet and is in full swing. Bangalore is likely to outperform major cities like Beijing this year in terms of economy, with a growth of over 6%. There are many benefits of the rapid economic growth in Bangalore, and the following are a few outcomes of this urbanisation:

Growth in opportunities: The information, communication, and manufacturing sectors in Bangalore will rapidly grow in 2023. It is leading to a rise in work-from-office opportunities due to large infrastructure development. Many individuals from other parts of the country migrate to Bangalore for the same reason. Top IT companies like Amazon, SAP, and Samsung are setting up bases here, further leading to its rapid development.

Rise in Rental Home Demands: The demand for houses for rent in Whitefield in layouts like Maithri Layout and Koramangala in layouts like AVS Layout and KEB Layout is rising due to the migration of individuals from other cities. Due to the rapid demand for housing, there is an increase in rental rates by 12%. The landlords are trying to meet the surge in demand and simultaneously trying to overcome the pandemic losses. The tenants looking for houses are willing to pay the rental price to fulfil their immediate need for a home. Most tenants are looking for 1BHKs or sharing apartments near their workplace. The city has good transportation connectivity like Metro, BMTC buses, and road connectivity, which are the top attraction factors for tenants to rent homes in the city. It allows them to travel to their workplace easily, which is often an element of concern.

The Climb in Interest of Investors: The economic growth in infrastructure and transportation has increased the interest of investors in the IT sector and manufacturing sectors. Apart from them, even residential real estate investors are interested in the Bangalore market. The city is ideal for Information Technology and Manufacturing Industries as there will be more migrants moving in for prospective job opportunities.

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2023 IS THE YEAR TO INVEST IN RENTAL HOMES IN BANGALORE - HERE'S WHY

Investing in a rental property is a prospect many landlords are looking at today due to the increase in demand for the need of rental homes, especially in a metropolitan and IT hub like Bangalore. Many millennials are shifting to the town for work and seeking flats for rent in Whitefield, Bangalore, or searching for "1BHK on rent near me" online in localities like Koramangala or Jayanagar. Landlords must consider this an opportunity to invest in rental housing real estate to attain high yields.

The real estate market will be on the rise in 2023, especially in residential sales, having increased by 51%. Research shows there will be a 7.5% growth across India in housing prices. Despite that, the housing sales in the top cities in the country are expected to breach 2014's peak sales. The cost of properties is up by 7%-10% in good localities. 2023 is the time to invest in rental homes, especially in Bangalore. Landlords can expect a significant profit increase through yields due to the high demand. But why choose this city? That is the next question that comes across the minds of the landlords. The following section will highlight this city's advantages over other top metropolitan cities in India.

Why choose Bangalore to invest in rental homes?

The housing real estate industry is predicted to grow from INR 12,000 crore in 2019 to INR 65,000 crore in 2024, contributing to 15% of the country's GDP. Many millennials are searching for "1BHK on rent near me", specifically flats for rent in Whitefield, Bangalore. Due to the rise in demand, it is the best time to eye properties for rental homes in this city. The following points will also add value to why the investment must be made in Bangalore over other cities:

 Growing Economy: Due to the city's large infrastructure development and multiple startups and IT sectors, it is ideal to invest in houses for rent here. Many career-oriented individuals migrating to the city seek residence and ease of access to their workplaces. Today, various areas in the city, like Whitefield, Koramangala, Jayanagar, etc., are well-connected through BMTC buses or the city's metro.

Growing Housing Demands: The population growth in India has increased the need for more housing. Most millennials are moving here for better employment and quality of life. It has led to a high demand for flats for rent in Whitefield Bangalore and other localities in the city. People living in Whitefield, Sarjapur, Koramangla, etc., frequently search "1BHK on rent near me", which shows a gap in the supply of homes in the city. It is the best time to invest in real estate to build homes for rent to fulfil the needs of the growing population. 

Higher Rental Yields: The city has become an attractive destination for rental flats investment for real estate investors. As per a survey, the average rental yield in Bangalore is between 5-7%. Even in more densely populated cities like Mumbai, the average yield is only 3.5%. It shows that the landlord has an advantage in investing in Bangalore over other cities.

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HOUSE RENTS SKYROCKETING IN BANGALORE - 2023 TREND ANALYSIS

Bangalore is the fastest growing city in terms of economy, competing with top cities in the world like Tokyo and Beijing, as per Oxford Economics. In 2023, the rates of flats for rent in Whitefield, Bangalore, have increased significantly, worrying engineers and other working millennials seeking residence in the city. The individuals typing "house for rent near me" are finding homes out of their budget. Software engineers seeking 1BHK flats for rent in popular localities like Maithri Layout in Whitefield and others are not finding sustainable homes they can afford.

Many reasons might have led to the rise in rental prices in popular localities like Whitefield, Koramangala, and Sarjapur. The rental struggles of the tenant, reasons for rent hikes, and more will be explained in the upcoming section of the article.

Changing Rental Market Trends (Post Covid-19) - Why There Is a Sudden Spike in Rent in Bangalore:

One of the main problems the tenants are facing is the skyrocketing rental prices, especially in IT Hub residential areas like Maithri Layout in Whitefield, Sarjapur, and Bellandur. The rental value has increased in 2023 compared to last year. There are many possibilities as to why landlords are increasing the rent by almost 30% of the cost. When new-age tenants search for "1BHK for rent near me" or "house for rent near me," they do so with expectations different from Covid-19 times. The trends were much different during the lockdown period, where the working trend shifted from Work-from-office to Work-from-home. Today, it is shifting back to Work from Office. The following are the reasons for rental value hike and issues tenants face in finding a home in Bangalore in 2023:

Demand v/s Supply gap: The increasing requirement for apartments in the IT hub of Bangalore is overshooting the availability of homes in the area. The new residential units added are only a 3% increase compared to 2022. These units are filling quickly, whereas double the demand is coming in. The inflow of migrating working professionals constitutes over 50% of the population in dire need of accommodation. During the lockdown in 2020 and 2021, the construction industry had halted, creating scarce supply. The demand which went home is now suddenly coming back, creating a huge gap in the rental market. It has allowed landlords to hike prices and lease their homes only to individuals who can afford the high rent.

Recovering from Pandemic losses: During the pandemic, most big companies, like Amazon, Wipro, SAP, etc., asked their employees to work from home. These individuals returned to their hometown to work remotely, increasing vacant homes in Bangalore. The landlords had to reduce their rental rates and incur a big loss. Now that the workforce has been asked to return to the office, there is a spike in demand for homes, an opportunity for the landlords to regain the revenue lost.

 Sudden Rental Hike trend: The primary factor affecting the tenants is the sudden hike in the rental rates. The landlords in Bangalore are gaining rental yields of around 3.9%. The rent has increased by almost 40% in the last year, making it difficult for engineers and other working professionals to find a residence in the city. Despite adding 13,560 resident units in Bangalore, there is still a mismatch between the demand and the availability. In Whitefield alone, hundreds of people look for '1BHK for rent near me" and are not finding homes in the reasonable price bracket. The average rent of a 1BHK or a 2BHK home has shifted from INR 25,000 to INR 40,000. The price can go up to INR 60,000 in some in-demand localities.

IT Hub Concentrated areas advantage: Over 350 IT companies in and around localities like Whitefield, ITPL, and Koramangala. There is an increase in demand for homes in these localities, making it difficult for tenants enquiring about the 1BHK homes for rent in Whitefield, Bangalore, to find a home. It increases the value of properties within a commutable distance from the workplace. Therefore, rents of properties in demand around these localities have increased significantly.

Additional issues faced by tenants: Apart from the high rent, there are other issues individuals are facing in 2023 to find a home in Bangalore. Some landlords make decisions based on their personal biases when leasing their property to an individual. Most do not prefer to give their property to unmarried individuals, while others want the tenant not to cook meat in the house. Some landlords rent their houses to potential tenants willing to pay a larger price than the quoted price. It makes the other applicants feel like it was an unfair trade, and the opportunity was taken away. Many landlords are asking for the resumes and LinkedIn profiles of potential tenants to screen the list of incoming applications. Some people ask for the tenant's marks cards and refuse to give them a flat if they have scored below 90%. Working professionals and students seeking residence in the city are finding these demands unreasonable. The stress of house-hunting and the landlords' unreasonable demands affects their mental and physical health, making the process more taxing.

How India's Inflation Rate and Rising Rental Prices are Affecting Each Other:

Inflation is the rise in costs of goods and services in a country's economy. The price rise in 2023 will affect all costs, including the rental market and residential real estate.

India's central bank is fighting against sudden inflation. It is affecting the real estate and rental market as the prices in top cities like Bangalore and Mumbai showed a 30% rise in rent, as reported by 20% of the tenant base in these cities.

Over the last five years, Bangalore has seen an inflation rate of 33%. This percentage is only predicted to grow in the coming years.

The ancillary and house rental costs contribute 10.07% of the weightage of the Indian consumer's price inflation leading to a three-year high.

The inflation in urban housing is rising by 4.47% YoY, as seen in December 2022, compared to 3.61% in December 2021 and 3.21% in 2020.

The RBI's comfort zone of inflation rates is between 2%-6%, where the country's retail inflation fell to 5.72%. But the core inflation excludes fuel prices and food supplies. This inflation rate remains closer to 6%, creating a tricky situation for the bank.

The increase in housing rents affects the inflation rate and could become a risk by leading to a further rise.

The average rent rose to around 20%-25% in top cities than pre-pandemic rates. Some popular housing societies have increased the rent by 30%.

The work-hybrid culture in the post-pandemic era demands larger homes with much more space.

The house pricing index put together by the RBI captures home sales and shows a steady rise in the value, which is the highest in more than ten years.

Although the housing market does not directly fall in the basket that affects inflation, its effect is indirectly captured by the construction sector and raw materials. Analysts have predicted that this rise will only exponentially grow.

Future Prediction- Bangalore to be the Fastest-Growing Asian City in 2023:

The increasing demand for flats for rent in Whitefield, Bangalore, and other localities due to many millennials migrating to the city for career opportunities has increased the demand for growth in infrastructure.

The Oxford Economics survey states that Bangalore is set to outperform other indian cities and Asian Pacific peers in 2023 in terms of overall growth with the help of communication and information sectors as its primary drivers.

Prominent localities in Bangalore, like Maithri Layout in Whitefield and layouts in Bellandur and Sarjapur, are seeing a steep rise in rental home demand as people search for "houses for rent near me."

The city is expected to see a 6% growth compared to other metropolitan cities in India.

Rent in Whitefield and Sarjapur is expected to increase by 12% this year.

The two cities have attracted several investors in the IT and manufacturing sectors.

There will be an increase in the influx of working individuals shifting to the city, rising the demand for 1BHK and studio flats on rent in Whitefield, Bangalore, Sarjapur, and other localities in and around ITPL.

The climb in demand will, in turn, increase the cost of living and house rent. The tenants, consisting of software engineers and other working professionals, must budget accordingly to afford the higher rent.

[kotsworld2021]

10 posts!

[kotsworld2021]

2023 IS THE YEAR TO INVEST IN RENTAL HOMES IN BANGALORE - HERE'S WHY

Investing in a rental property is a prospect many landlords are looking at today due to the increase in demand for the need of rental homes, especially in a metropolitan and IT hub like Bangalore. Many millennials are shifting to the town for work and seeking flats for rent in Whitefield, Bangalore, or searching for "1BHK on rent near me" online in localities like Koramangala or Jayanagar. Landlords must consider this an opportunity to invest in rental housing real estate to attain high yields.

The real estate market will be on the rise in 2023, especially in residential sales, having increased by 51%. Research shows there will be a 7.5% growth across India in housing prices. Despite that, the housing sales in the top cities in the country are expected to breach 2014's peak sales. The cost of properties is up by 7%-10% in good localities. 2023 is the time to invest in rental homes, especially in Bangalore. Landlords can expect a significant profit increase through yields due to the high demand. But why choose this city? That is the next question that comes across the minds of the landlords. The following section will highlight this city's advantages over other top metropolitan cities in India.

Why choose Bangalore to invest in rental homes?

The housing real estate industry is predicted to grow from INR 12,000 crore in 2019 to INR 65,000 crore in 2024, contributing to 15% of the country's GDP. Many millennials are searching for "1BHK on rent near me", specifically flats for rent in Whitefield, Bangalore. Due to the rise in demand, it is the best time to eye properties for rental homes in this city. The following points will also add value to why the investment must be made in Bangalore over other cities:

 Growing Economy: Due to the city's large infrastructure development and multiple startups and IT sectors, it is ideal to invest in houses for rent here. Many career-oriented individuals migrating to the city seek residence and ease of access to their workplaces. Today, various areas in the city, like Whitefield, Koramangala, Jayanagar, etc., are well-connected through BMTC buses or the city's metro.

Growing Housing Demands: The population growth in India has increased the need for more housing. Most millennials are moving here for better employment and quality of life. It has led to a high demand for flats for rent in Whitefield Bangalore and other localities in the city. People living in Whitefield, Sarjapur, Koramangla, etc., frequently search "1BHK on rent near me", which shows a gap in the supply of homes in the city. It is the best time to invest in real estate to build homes for rent to fulfil the needs of the growing population. 

Higher Rental Yields: The city has become an attractive destination for rental flats investment for real estate investors. As per a survey, the average rental yield in Bangalore is between 5-7%. Even in more densely populated cities like Mumbai, the average yield is only 3.5%. It shows that the landlord has an advantage in investing in Bangalore over other cities.

[kotsworld2021]

2023 IS THE YEAR TO INVEST IN RENTAL HOMES IN BANGALORE - HERE'S WHY

Investing in a rental property is a prospect many landlords are looking at today due to the increase in demand for the need of rental homes, especially in a metropolitan and IT hub like Bangalore. Many millennials are shifting to the town for work and seeking flats for rent in Whitefield, Bangalore, or searching for "1BHK on rent near me" online in localities like Koramangala or Jayanagar. Landlords must consider this an opportunity to invest in rental housing real estate to attain high yields.

The real estate market will be on the rise in 2023, especially in residential sales, having increased by 51%. Research shows there will be a 7.5% growth across India in housing prices. Despite that, the housing sales in the top cities in the country are expected to breach 2014's peak sales. The cost of properties is up by 7%-10% in good localities. 2023 is the time to invest in rental homes, especially in Bangalore. Landlords can expect a significant profit increase through yields due to the high demand. But why choose this city? That is the next question that comes across the minds of the landlords. The following section will highlight this city's advantages over other top metropolitan cities in India.

Why choose Bangalore to invest in rental homes?

The housing real estate industry is predicted to grow from INR 12,000 crore in 2019 to INR 65,000 crore in 2024, contributing to 15% of the country's GDP. Many millennials are searching for "1BHK on rent near me", specifically flats for rent in Whitefield, Bangalore. Due to the rise in demand, it is the best time to eye properties for rental homes in this city. The following points will also add value to why the investment must be made in Bangalore over other cities:

The city has become an attractive destination for rental flats investment for real estate investors. As per a survey, the average rental yield in Bangalore is between 5-7%. Even in more densely populated cities like Mumbai, the average yield is only 3.5%. It shows that the landlord has an advantage in investing in Bangalore over other cities.

[kotsworld2021]

THE BEST 5 LOCALITIES TO RENT A HOME IN BANGALORE - A QUICK GUIDE

Bangalore is a city buzzing with opportunities for IT professionals and startups. Many individuals are migrating here for career growth and exploring other prospects. Apart from the job aspect, the city draws prospective residents due to its lovely weather, fantastic food, and cosmopolitan culture. Areas like Maithri Layout with 1BHK for rent in Whitefield, J.P. Nagar, Electronic City, and more are becoming homes for individuals relocating for a better life.

Due to this high influx of inquiries for rental homes, the growth in the rental real estate market is booming. The one question in the minds of potential residents is what are suitable localities to rent homes in Bangalore? This blog will list the five best localities in Bangalore for renting homes.

BEST 5 RENTAL LOCALITIES IN BANGALORE FOR TENANTS:

Individuals looking to shift to Bangalore for work are often confused if they want to look for 1BHK for rent in Whitefield or Banashankari. Many criteria affect the decision-making, like rent, locality, convenience, accessibility, etc. The following is a list of the top 5 best rental localities in Bangalore:

Whitefield: This is the IT hub of Bangalore, where most Software Engineers, Developers and coders are migrating for better career opportunities. As per statistics, Whitefield ranks amongst the Top 3 rental localities in India. They seek rental housing in localities like Maithri Layout due to its security and calmness. Homes like studios, 2BHK and 1BHK for rent in Whitefield range between INR 5,000 and INR 25,000. Whitefield is well-connected to other parts of the town via the Metro purple line, Old Airport Road, and Whitefield main road.

Jayanagar: This is a premium and one of the oldest localities in Bangalore. There are several 1BHK flats with rent ranging from INR 16,000 to INR 28,000. The locality is surrounded by well-established areas like BTM, Banashankari, J.P. Nagar, and Basavanagudi. It has good transportation connectivity to major IT Industries and retail hubs through Jayanagar metro, Outer Ring Road and Bannerghatta Road.

Marathahalli: This locality is towards East Bangalore, which has undergone tremendous infrastructure development. People working in areas like RMZ Ecospace, Prestige Tech Park and Cessna Business Park must seek accommodations in Marathahalli. The rent for 1BHK homes ranges between INR 6,000 to INR 28,000. The locality's neighbouring areas are Electronic City, KR Puram and HAL.

HSR Layout: This is a suburb located in South-East part of Bangalore. The locality is filled with small IT firms and startups, providing employment opportunities to many—the rental homes in the locality range between INR 9,000 to INR 35,000. The locality houses healthcare centres, educational institutions, popular restaurants and hangout spots, making it an ideal rental locality.

Koramangala: This is an upscale residential locality in Bangalore's South-East area. It is connected to major roads like Sarjapur, Ring Road and Hosur. The rent prices range from INR 9,000 to INR 25,000 for a studio or 1BHK home. Koramangala has an excellent social infrastructure with many famous microbreweries and some of the most popular restaurants in Bangalore. The locality also has the famous Koramangala Nexus Mall (Forum Mall), housing top retail brands for residents to have fun shopping at weekends.

[kotsworld2021]

Kots is a leasing company that provides an innovative solution to those looking for one-bedroom homes. Their unique technology makes it easy and more cost-effective to rent a home. Kots offers the convenience of modern living with the latest appliances and technology, making your home experience hassle-free. With Kots, you can enjoy all the benefits of a one-bedroom home without the extra stress and expense of owning

[kotsworld2021]

THE BEST 5 LOCALITIES TO RENT A HOME IN BANGALORE - A QUICK GUIDE

Bangalore is a city buzzing with opportunities for IT professionals and startups. Many individuals are migrating here for career growth and exploring other prospects. Apart from the job aspect, the city draws prospective residents due to its lovely weather, fantastic food, and cosmopolitan culture. Areas like Maithri Layout with 1BHK for rent in Whitefield, J.P. Nagar, Electronic City, and more are becoming homes for individuals relocating for a better life.

Due to this high influx of inquiries for rental homes, the growth in the rental real estate market is booming. The one question in the minds of potential residents is what are suitable localities to rent homes in Bangalore? This blog will list the five best localities in Bangalore for renting homes.

BEST 5 RENTAL LOCALITIES IN BANGALORE FOR TENANTS:

Individuals looking to shift to Bangalore for work are often confused if they want to look for 1BHK for rent in Whitefield or Banashankari. Many criteria affect the decision-making, like rent, locality, convenience, accessibility, etc. The following is a list of the top 5 best rental localities in Bangalore:

Whitefield: This is the IT hub of Bangalore, where most Software Engineers, Developers and coders are migrating for better career opportunities. As per statistics, Whitefield ranks amongst the Top 3 rental localities in India. They seek rental housing in localities like Maithri Layout due to its security and calmness. Homes like studios, 2BHK and 1BHK for rent in Whitefield range between INR 5,000 and INR 25,000. Whitefield is well-connected to other parts of the town via the Metro purple line, Old Airport Road, and Whitefield main road.

Jayanagar: This is a premium and one of the oldest localities in Bangalore. There are several 1BHK flats with rent ranging from INR 16,000 to INR 28,000. The locality is surrounded by well-established areas like BTM, Banashankari, J.P. Nagar, and Basavanagudi. It has good transportation connectivity to major IT Industries and retail hubs through Jayanagar metro, Outer Ring Road and Bannerghatta Road.

Marathahalli: This locality is towards East Bangalore, which has undergone tremendous infrastructure development. People working in areas like RMZ Ecospace, Prestige Tech Park and Cessna Business Park must seek accommodations in Marathahalli. The rent for 1BHK homes ranges between INR 6,000 to INR 28,000. The locality's neighbouring areas are Electronic City, KR Puram and HAL.

HSR Layout: This is a suburb located in South-East part of Bangalore. The locality is filled with small IT firms and startups, providing employment opportunities to many—the rental homes in the locality range between INR 9,000 to INR 35,000. The locality houses healthcare centres, educational institutions, popular restaurants and hangout spots, making it an ideal rental locality.

Koramangala: This is an upscale residential locality in Bangalore's South-East area. It is connected to major roads like Sarjapur, Ring Road and Hosur. The rent prices range from INR 9,000 to INR 25,000 for a studio or 1BHK home. Koramangala has an excellent social infrastructure with many famous microbreweries and some of the most popular restaurants in Bangalore. The locality also has the famous Koramangala Nexus Mall (Forum Mall), housing top retail brands for residents to have fun shopping at weekends.

[kotsworld2021]

HOW TO FIND A HOUSE IN WHITEFIELD AND WHAT ARE THE OPTIONS?

Bangalore, the country’s start-up and tech capital; the Silicon Valley of India, is expected to be Asia’s fastest growing city this year. Bangalore city unquestionably is a millennial’s paradise. With a horde of multi-national corporations setting up large scale offices and employing in masses pan India, close to 77% of Bangalore’s tech workforce are millennials with millions of migrants relocating from different parts of the country, looking for quality, all-inclusive and short-term rental accommodation. With well-established physical infrastructure; arterial road that runs through the city, ring road connectivity, railway station, metro line and thriving urban culture and amenities, Whitefield has become a residential haven, making it ideal for proficient tech savvy millennials to rent homes in this township. For migrant millennials moving to Bangalore for jobs, Whitefield has a plethora of 1BHK and 2BHK homes for rent, given the ease and connectivity it provides to the workplace and rest of the city. However, it isn’t easy moving homes, especially into a new city altogether, it is a cumbersome process which involves important financial and lifestyle-based decisions to make. Typically, for someone house-hunting in Whitefield, especially for migrants, is to go online and google search, “flats for rent in Whitefield”, “fully furnished 1BHK homes for rent in Whitefield”, “budget homes for rent in Whitefield” and so on. The search will pull up an astounding number of housing and rental property sites with pictures and videos, making one’s shortlisting process confusing. Before throwing in their search into a vast pool of online listings and ads, it is far more effective for renters to, firstly, understand their “must haves” or non-negotiables in place. Such as:

Knowing the locality, and Whitefield specific rental rates

Fixing their rental budget and type of homes they want - 1/2/BHK or Studio type

Deciding on a fully furnished flat or semi-furnished? Do they prefer homes that comes with in-built facilities or the routine?

Are they particular about developer brands or private owned building? Or if they are they looking for managed apartments or standard properties?

The current go-to rental options would be in the categories of Co-living, Luxury Paying Guest, Accommodation, Managed Apartments or the standard to-let properties available for rent. The latest rental model picking up pace and expected to be the new go-to for modern renters is the Build-to-Rent (BTR) model wherein properties are built or acquired from scratch to capitalize on a higher property-tenant fit, meaning properties are built or designed to include furnishing, services and amenities to make it ready-to-move in for the renter. BTR models are meant to be more privatized, flexible and organized for renters without losing out on managed services and amenities. Kots Housing Pvt. Ltd. is one the first leasing companies to bring in the BTR model, actively operating in the IT Hubs of Bangalore, focusing on the white collared millennials as their target group. Another way to look for houses, of course, could be through friends/colleagues/relatives who live in Bangalore, get cues on which websites, sub-locality or spots to consider in Whitefield.

Challenges in finding a good home:

Zeroing in on a place ideal for a tech savvy millennial, that is fully furnished, 1BHK for instance, that is maintained, and provides additional services, keeping in mind the taste, timely ease and spatial interiors of the modern-day renter, is definitely a challenge, despite several options that seem presentable online.

Most properties are homes of individuals or owner-built basis their family or investible requirement, and not really built keep in mind the lifestyle of a millennial renter. Which limits one to ‘adjust’, compromising on their personal sense of a home, hence devaluing their rental experience.

Communication (local language could be a barrier), negotiations and transacting with the local landlords is a hassle, especially for migrants, more so with cultural nuances which can be a bit intimidating for a new-comer in a yet-to-be organised housing realty segment.

What you see is not what you get. Photos and videos online can be misleading, since virtual previews cannot help one judge the actual quality of the house layout, interiors and its upkeep, nor the neighbourhood or conveniences available; subject to one’s personal preferences. For instance, amiss on essential fitment and fixtures such as lead to the renter’s maintenance and other costs, not to forget, the hassle of getting it done.

How does Kots housing help and what are its benefits:

Kots is a new business solving this problem at a ground level. A Build-to-rent model guarantees a consumer-focused approach, building properties keeping the target renter’s housing needs in mind- locality, proximity, managed services, security, design and layout of the homes and common areas. BTR is a pre-emptive method of rental housing that stabilizes business costs in the long run, instead of retrofitting old homes to make it rent ready, incurring higher maintenance and refurbishing costs; lowering the aesthetic value of a quality home.

A BTR model provides an optimized property: tenant fit, hence KOTS manages to provide consistent and improved rental yields. This helps cut through the under organized rental realty that has a growing demand of quality, systematic and ready to move in homes in residential hubs across the country.

Millennials in the age group 26 to 40 years relocating to Bangalore for their jobs want savvy 1 BHK or 2 BHK homes or flats on rent, that are quick to fins and ready to move into. Be it single, married or with children, each category comes with prerequisites that can be factored in at the beginning given the BTR (Build-to-Rent) model; Kots is well digitized and growing in inventory, allowing its renters to select, verify and book their flats online and move-in the day they enter the city.

Today’s millennials are more lifestyle renters, who are willing to pay a premium for better facilities included in their housing, but majority of rental realty are just stand-alone buildings with no additional facilities, or they need to be co-shared, or very expensive developer- built apartments that are well outside a millennial’s short-term budget. Kots is addressing this mismatch with the new age renter’s preferences by providing rental solutions that are worth that premium.

Being a digitized platform/ with a downloadable interactive app, allows Kots to make the rental experience hassle-free, organized and faster for the renter.

1BHK FURNISHED HOMES in Bengaluru | Kots.world