BANGALORE: Residential rentals in Bangalore have fallen by close to 30% in the last six months alone.
So, if you are looking to rent a house or ink an extension in your contract, make sure that the owner drops the rental in line with the current market rates. The economic turmoil, which has led to job cuts and lower pay hikes, has forced many to either vacate their homes or go in for more affordable rentals. This, combined with an increase in brand new flats, has created a huge supply in the market and left landlords with no choice but to drop prices.
Three days ago, a two-bedroom flat in an apartment in Kodihalli 1st Main, near Indiranagar 2nd stage, went for a sweet Rs 12,000 a month as rent inclusive of maintenance. Barely four months ago, the same area commanded a rental of Rs 18,000 exclusive of maintenance per month for a two-bedroom apartment.
In Whitefield, a two-bedroom flat is going for just Rs 12,000, and there are still no takers. Just eight months ago it would have fetched a price anywhere between Rs 25,000 and Rs 35,000.
Even villas in Adarsh Palm Meadows in Whitefield at Rs 75,000 a month have no takers. And this was a project where monthly rentals started at Rs 2 lakh onwards just a year ago.
“The market has dropped by a minimum of 25% due to the overall economic gloom. People are not able to pay those exorbitant rentals with no pay hikes happening and the constant fear of being asked to leave their job,” says Feroze Abdulla, MD, Feroze’s Estate Agency.
According to Farook Mahmood of Silverline Realty, one of the city’s leading real estate agents, “many people in the city have already started serving their notice period to home owners. This has forced owners to renegotiate the contracts and lower prices.” In the last one month, Silverline Realty has closed about five deals, all of which saw owners dropping their rentals by 20%. “We have told our clients that if they want takers they have to drop prices,” says Mahmood.