The Many Challenges Of Renting A House In Bengaluru: News18 Uncovers The Home Truths – News18

Last Updated:November 27, 2024, 06:30 IST

A majority of people who move to the city often find it extremely difficult to rent a place, not just in the prime areas, but in the interiors and outskirts as well

Experts say that rents in the city have been soaring post-Covid, especially after IT companies opened up their offices and slowly began doing away with work-from-home arrangements. Representational image

When Pritesh Dalal moved to Bengaluru after his job as a logistics manager made him shift cities from Pune to the IT capital of the country, he was not prepared for what was going to hit him when it came to renting a place for himself.

Single and in a new city, his hunt for a flat began with an advertisement on a social platform seeking options. His inbox was flooded with options near his new office on Bannerghatta Road, but it wasn’t just the rental that took him by surprise, but the deposit as well.

“One of the brokers who called me said a 1 BHK, which is roughly around 700 to 800 sq ft, commands a rent of Rs 22,000 in the Bannerghatta-Tavarekere-Madiwala (popularly called BTM) area. The deposit sought was Rs 3 lakh. I saw another 2 BHK as I thought I would like a more spacious place. The rent was Rs 42,000, and the deposit was Rs 5 lakh. I am aghast!” he told this reporter.

Another young IT professional, Vaishnavi Singh, moved from Delhi to Bengaluru after landing a new job as a data analyst with an MNC.

“Since I was shifting with my mother, I decided to look for a 2 BHK. My office is located near Electronic City Phase 2, but the flat rentals in the vicinity of the area, be it Sarjapur, HSR Layout, or Koramangala, are just mind-boggling. A tiny apartment of 900 sq ft for a 2 BHK was going for a rent of Rs 50,000 without maintenance. The owner told me that the flat has CCTV coverage, Wi-Fi, wooden flooring in one room, and kitchen interiors done, so the rent would not be less than that,” she explained.

Then came the matter of the deposit. There was no discussion. Just a plain statement—it will be Rs 6 lakh. “How are we supposed to get that kind of money?” asked the IT professional, who now lives in Marathahalli and commutes 25 km one way to work each day.

That’s not all—many renters also say that landlords ask for their resumes, annual income, family background, and, in some cases, even a police verification certificate.

“One person asked me for a police verification certificate of character as their two-storey house had elderly parents on the ground floor. I asked him why, and he replied, ‘We don’t know what kind of criminal background people come with, and I don’t want the police at my doorstep’,” said Harman Shaikh, the CEO of a young startup working on waste management and sewage disposal.

Another young entrepreneur, who wanted to move into a flat away from her family as she worked as an illustration artist, was asked several questions.

“All I wanted was a quiet space of my own where I could work without disturbing my family with my odd hours. Instead, I was asked why, despite being a Kannadiga and a local, I wanted to stay away,” said the 34-year-old artist, who has had several art shows.

Post-pandemic change

Experts say that rents in the city have been soaring post-Covid, especially after IT companies opened up their offices and slowly began doing away with work-from-home arrangements. Companies are increasingly discouraging remote work and asking employees to return to the office.

“Lots of new companies are coming in, especially what are called global capability centres (GCCs) of MNCs, and they are creating new jobs.”

Remember the viral post by a young investor, Harnidh Kaur, who posted on social media site X, “5 lakh deposit for a flat with 40k rent. I’m so tired.” This has once again brought to light the woes of renters in the city. Along with being infamous for its traffic and flooding, the country’s tech capital is also increasingly being known for its housing crisis.

A majority of people who move to the city often find it extremely difficult to rent a place, not just in the prime areas, but in the interiors and outskirts as well. Landlords asking for resumes, funding details of the startup one is employed at, and career plans, among other details, have become the norm.

Rental norms by landlords, which used to be three months’ rent in advance, have now shifted to asking for 11 months’ rent as a security deposit.

“Now with the rents, the security deposit has also gone up, and so has the greed of the owners,” said Shailaja Bakshi, who recently moved back to her hometown in Indore after dealing with high rentals in Bengaluru.

31% jump in rents

According to a report by Anarock Group released a few months ago, residential rents in India’s IT hub have increased by up to 31%, and rent inflation is expected to be even higher in prominent areas, metro routes, and around tech parks.

A 2 BHK flat in areas like Koramangala and Indiranagar costs anywhere between Rs 35,000 and Rs 45,000 for a place around 750 to 1,050 sq ft, while it ranges between Rs 25,000 and Rs 45,000 in other parts of north, south, and west Bengaluru, with deposits of 11 months’ rent in advance.

While cities like Delhi usually require security deposits equal to one or two months’ rent, Bengaluru’s pricey and space-scarce market frequently demands deposits equivalent to five to ten months’ rent. Metropolitan cities like Mumbai, Delhi, and Bengaluru are making it challenging for the middle class to find decent and affordable housing options.

A report shows that Sarjapur Road saw a rental increase of 67% between the end of 2021 and the first half of 2024, with average monthly rentals for 2 BHKs (approx. 1,000 sq ft) rising from Rs 21,000 to Rs 35,000. Annual rental increases typically tend to be between 5% and 10%.

Flat owners and brokers say that high deposits are also due to many renters defaulting on monthly payments, especially those working in startups who often claim they have not been paid their salaries.

“By keeping a higher advance, there is accountability. The steady flow of monthly rent is also taken care of, and in case of default, the landowners are not at risk,” said Shailendra Kamat, who has four flats on rent in the HSR and Koramangala areas of Bengaluru.

“There are a lot of amenities and fixtures that come with the flats we give, as well as the cost of painting and repair when people move out. Many do not treat it as their own home and deface the walls or the place, and that maintenance costs a lot. This is why we are forced to take a higher deposit,” said Chaithra, another flat owner who rents out several flats in her family-owned residential building.

The growing influx of students from around the country, attracted by the city’s prestigious educational institutions, has also driven rentals up.

Sharing apartments new trend

Trends also show that students and young professionals are opting for shared apartments to save on rental costs and avoid paying for guest accommodations that come with rigid rules and poor living conditions. Millennials, especially students and freshers, are increasingly choosing shared apartments over PG accommodations due to the greater freedom and privacy they offer.

The steep rentals have forced many to seek accommodation far from their workplaces. A growing number of people are therefore commuting longer distances to reach their offices. The situation not only affects their quality of life but also contributes to the city’s overall traffic woes.

Not just residential, commercial spaces in Bengaluru are also seeing skyrocketing prices.

Indiranagar in Bengaluru has gained global attention for its retail real estate. Its 100 Feet Road has been ranked as the top high street for rental growth in the Asia Pacific region in 2024, according to the latest Cushman & Wakefield Main Streets Across the World report.

Indiranagar has become a leading retail location because of its combination of luxury stores, fine dining restaurants, and trendy cafes, as well as its prime location in the city’s eastern area. The area’s proximity to tech parks, upscale residential areas, and metro stations has helped make it a top retail space in the region.

The area saw a large increase in rental prices, rising by 32% compared to last year.

This increase in rents is part of a bigger trend across India. While areas like MG Road in Pune, Anna Nagar in Chennai, Fort area or Fountain in Mumbai, and Park Street in Kolkata saw smaller increases, they all experienced a rental growth of over 10%. On average, retail rents across 16 cities in India grew by 9% annually, the report says.

The report also mentions that the average rent on 100 Feet Road in Indiranagar is Rs 330 per square foot per month. However, other streets in Bengaluru, like Brigade Road and Vittal Mallya Road, have higher rents of Rs 400 and Rs 380 per square foot per month, respectively.

Experts say that the growth is also due to the unique mix of international brands, fashionable stores, and entertainment options along 100 Feet Road, making it a popular place for shopping and leisure.