10-15% dip in housing rents in Bengaluru

Picture used for representational purpose only

Bengaluru: As the Covid-19 pandemic had many disruptions, the housing rents have fallen by 10 to 15 per cent in parts of Bengaluru and other cities. Several tenants who left the city to be with their families or to cope with their financial instability are yet to return and thus, many properties and flats are vacant.

The monthly rent for a 4 BHK in Dollars Colony- RMV Extension Stage 2 has come down from Rs 50,000 in March 2020 to Rs 45,000. Somewhere in RT Nagar, a 3 BHK independent house which was earlier available for Rs 35,000 is now been given in Rs 31,000. The same situation prevails in suburbs and tier 2 cities.

Previously, a 2 BHK house in Vijayanagara 1st Stage, commanded Rs 25,000. The present rate is Rs 19,000. Rents have also fallen in Mangaluru, Hubbali-Dharwad, Belagavi and Kalaburagi

But rentals have not been changed in some areas such as Indiranagar, Jayanagar and Sadashivanagar. Shabeer Sait, the executive head of operations at Irshads Property Matters said, “There has been minimal impact on big-ticket properties (Rs 2 lakh or above rent per month) in Bengaluru. The vacant level at these properties has been below 10 or 15 per cent, and therefore their rentals have been largely unchanged.” He also said that occupancy of rental properties available for Rs 1 lakh or less had decreased.

The vacancy level during the first wave of Covid was around 10 to 15 per cent. But, now it had gone up to 25 per cent. In Bengaluru and Mysuru, many landlords have put up the to let boards as they face difficulty in finding tenants.

GN Rishikesh, a property owner and consultant in east Bengaluru said, “Landlords were not ready to reduce rents during the first wave. They have realised now that there is no point in waiting for higher rents as senior professionals and company executives are facing salary cuts. There is uncertainty in the job market, so people are reluctant to lease properties with higher rents.”

According to CREDAI Bengaluru secretary Errol Fernandes, the retail space was also witnessing a 10 to 12 per cent downward revision in rents. He said, “Landlords who took loans to develop their buildings are under pressure from banks as repayments are falling short.”