Exploring the Most Preferred Rental Neighbourhoods in Bengaluru: A Closer Look

Bengaluru, often referred to as India’s Silicon Valley, has experienced a notable evolution in recent years, driven by the growth of the IT/ITeS sector. Naturally, this transformation has had an impact on the city’s real estate landscape as well. While the office market of the city gained pole position in the country, Bengaluru’s rental housing market has experienced a significant upsurge, too, which could be attributed to various factors, including economic growth, demographic shifts, and changing lifestyles.

The Key Demand Drivers

Bengaluru’s status as India’s IT capital has played a pivotal role in fuelling the rental housing market. It consistently ranks high in ease-of-doing-business indices, making it a preferred destination for companies. As such, the city attracts a steady influx of tech professionals from across the country and the world. Many of them prefer renting as it provides flexibility and aligns with their transient job assignments.

Of late, Bengaluru has solidified its position as a robust centre for start-ups in the country. Thus, with entrepreneurs, tech companies and employees flocking to the city to be part of the innovation and entrepreneurship wave, the rental market has stepped up to cater to their accommodation needs.

Besides the IT/ITeS sector, the city is home to prestigious educational institutions and universities. Students from various parts of India and abroad come to Bengaluru for higher education. This demographic has contributed to a large share of the demand for rental apartments in the city. Further, the evolving lifestyle preferences of urban dwellers have also led to a surge in rental housing demand. Many young professionals and nuclear families prefer the convenience of renting over the responsibilities of homeownership.

Preferred Neighbourhoods for Renting

Our data on online searches for rental properties in Bengaluru has revealed that HSR Layout and Whitefield garnered the most significant volume of inquiries for rental accommodation. These locations are followed by Bellandur, Koramangala and BTM Layout 2^nd Stage as the other frequently searched areas online.

While HSR Layout and Whitefield command average housing rentals of INR 47,000-48,000 per month and INR 35,000-36,000 per month respectively, the rentals in Bellandur and Koramangala hover around INR 46,000 to INR 48,000 per month. In addition to these areas, other sought-after online searches for rental housing also encompass peripheral neighbourhoods such as those in Electronics City. These locations, understandably, have relatively lower rental values and are quoted within INR 13,000 to INR 22,000 per month.

Proximity to IT hubs and community living the key attributes

Preferred locations such as Whitefield is home to numerous IT parks and tech companies while HSR Layout and Bellandur are close to the IT corridor along the Outer Ring Road, making these neighbourhoods attractive choices for professionals working in the tech industry.

The fact that their proximity to employment hubs reduces commute times and enhances work-life balance, attract a large number of prospective renters. Meanwhile, Koramangala boasts of several renowned educational institutes and enjoys good connectivity to the central business district of the city.

These localities also offer a wide range of rental options, catering to various budgets and preferences. Further, rental accommodation in gated communities and residential complexes often foster a sense of community living, with shared amenities and social events creating a more engaging and connected environment.

Conclusion

Thus, the rental housing market in Bengaluru is on a steady growth trajectory, driven by a confluence of factors such as the IT boom, the start-up ecosystem, educational institutions, and evolving lifestyles. Preferred neighbourhoods, as revealed by our data, offer residents a variety of choices to meet their specific needs, ensuring that the rental housing market in Bengaluru remains vibrant and dynamic for years to come.

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