Soaring rents in Bengaluru have emerged as a major challenge for the software professionals who are already affected by salary cuts and fear of layoffs.
As companies are slowly coming out of hybrid working mode and making reporting to the office compulsory, techies from across the country are coming back to Bengaluru and settling down.
The rents for flats, independent houses, and residential facilities in Bengaluru, especially those which are close to IT parks, have almost doubled.
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The techies, especially those in the early phase of their careers, are finding it difficult to afford exorbitant rents and they are considering migrating to distant localities that have affordable rents as well as good connectivity with their workplaces. Bachelors are coming together to share the living space while married ones are finding it hard, explain industry sources.
Magicbricks Property Index Report for January to March revealed that residential demand (searches) in Bengaluru increased 10.3 percent QoQ, making it amongst the top 3 preferred metros in India.
During the same time, residential supply (active listings) observed a marginal decline of 1.1 percent QoQ and the demand-supply mismatch led to an increase of 2.5 percent in the average property rates.
The average rates of ready-to-move and under-construction properties increased by 2.5 percent and 2 percent QoQ, respectively.
The report also stated that Bengaluru records the second-highest increase in residential demand (10.3 percent QoQ). Sarjapur Road emerged as the most preferred residential area in Bengaluru, the report said.
The report also revealed that 3BHK configurations gained the highest traction commanding a share of 48 percent in the total residential demand during this (January-March) quarter and a 43 percent share in the total supply (listing).
This was followed by 2BHK configurations which held a 38 percent share of the demand and 43 percent of the supply in the city.
Elaborating on the trends, Sudhir Pai, CEO, of Magicbricks commented: “Several multilateral agencies have projected that the Indian economy will grow by 6-7 percent in FY23, despite the global slowdown.
The recent Union Budget has also introduced several encouraging initiatives, including substantial allocations to PMAY and UIDF, which have set the wheels in motion for facilitating employment opportunities and infrastructure development.
“Given the under-served demand for home ownership in the affordable and mid-range segment, we are optimistic about the growth trajectory for residential demand in the coming quarters as well.
We anticipate that the market will stabilize, supplemented by new projects and expedited delivery of under-construction properties, which will open up new avenues for investment and innovation.”
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