Rents in gated communities in Bengaluru increase by 40%, says report

High demand for apartments in gated residential societies has hiked the home rentals in gated communities across Bengaluru by up to 40 per cent, as per NoBroker survey. 

Listings in gated societies are in such high demand on the platform that almost all properties get rented out within 5-6 hours, especially those located in East Bengaluru or close to the IT corridor. 

As per survey, in Adarsh Palm Retreat, Bellandur, 3BHK apartments with monthly rent in the range of Rs 45,000-55,000 in 2021 are now attracting monthly rents of Rs 65,000-75,000.

Similarly, 2BHK apartments in another gated society, Raheja Residency, in Koramangala are now attracting a monthly rent of Rs 50,000-55,000, as opposed to the Rs 35,000-40,000 that they fetched just a year ago.

The average rental yield for such properties along areas such as the Outer Ring Road and Sarjapur Main Road has also registered a significant increase, growing to 4-5 per cent as compared to the 2-3 per cent that they secured before the pandemic.

Speaking on the development, Amit Kumar Agarwal, CEO and Co- founder, NoBroker.com said, “ Gated societies have always been a preferred choice for most people due to the conveniences they offer. But given the fact that construction activity came to a grinding halt during Covid, the supply of new constructions has not matched up to the demand.”

Traditionally, rents increase by 7-8 per cent in a year but this year they have increased from anywhere between 15-40 per cent, he said.

Past two years saw rapid urbanisation in IT cities such as Bangalore and Pune. Now, as offices have opened up, professionals who were working in these cities had gone back to their hometowns due to prolonged work from home and are now back.

While there is sudden demand from these three segments, the supply has not kept pace as construction activity was muted for almost two years.

“What is most interesting about this trend is that it is not a localised phenomenon but one that is playing out across all major cities in India,” said Agarwal.

He also said that more and more urban residents now value their living experience over other considerations such as affordability.