Rising Rents: Why Bengaluru’s 1BHK Rentals Are Soaring

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    The demand for one-bedroom homes in Bengaluru is skyrocketing, leading to a significant increase in rental prices. Landlords are raising rents by up to 25 percent in some cases, with areas like Sarjapur Road, HSR Layout, and Indiranagar seeing the steepest hikes.

    Experts say that the rental yield, which is the income generated by a rental property compared to its value, has risen to around 4-6 percent in many places. This is much higher than the usual 2-3 percent seen in Bengaluru.

    The surge in demand for one-bedroom homes is mainly due to their proximity to commercial areas, making them convenient for employees returning to offices. With fewer one-bedroom properties available compared to larger homes, the demand-supply gap is driving up rental rates.

    Data shows that demand for 1BHK homes almost doubled in the third quarter of 2023 compared to the previous year, while supply also increased. However, experts believe it will take several years for new supply to stabilize rental prices.

    Despite overall rental prices in Bengaluru increasing by 30-50 percent in the past two years, experts predict that the rental rates for 1BHKs will only rise moderately in the near future and eventually stabilize.

    Also read: BHIVE Launches Exclusive for Retail Investors in Bengaluru’s Booming Commercial Real Estate Market

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