Bangalore rental values show interesting trends -A Dreamz infra survey

Bangalore

Rental values in Bangalore witnessed some interesting trends in the Apr-Jun 2013 quarter. Localities like Koramangla, Banshankari Stage 2 and Yellahanka recorded a rise in rental values. Koramangla and Banashankari Stage 2 grew by 10 per cent each, while Yellahanka reported a 9 per cent increase in rental values as compared to the quarter ending March 2013.

“Land pockets in Koramangla and Yellahanka are now saturated. The existing supply has to cater to the demand,’’ states Balakrishna Hegde, MD, Of an Realty. “Overall the rent values haven’t really increased. What we are witnessing is an expected marginal fluctuation in the said months.’’
What works in favour of places like Yellahanka and Koramangla is the location.

“Koramangla has very good infrastructure. It is strategically located and almost all main roads in this locality have got commericalised. All these factors are driving the residential market of this locality,’’observes Ravindra Madhudi, Director, of an Realty. “Also, as it is an upmarket area, C-level professionals transferred to Bangalore, prefer to rent houses in the area. This has boosted the rental market of Koramangla.’’

In contrast, rental values in localities like JP Nagar VII Phase, Kanakpura Road and Cambridge Layout have witnessed a significant drop, as compared to the Jan-Mar 2013 quarter. While JP Nagar VII Phase and Cambridge Layout recorded a drop of 7 per cent each, Kanakpura Road reported a 5 per cent fall in rental values.

Places such as JP Nagar and Jayanagar are targeted by the traditional rich. These include several expats and Kannadigas returning home. This segment prefers to buy and doesn’t mind paying extra for the locality. Hence, a house put up for rent, however big, cannot command a big price, as it is not perceived as attractive,’’ states Abhijit Badrinath, Proprietor,of an Real Estate Co.With regards to Cambridge Layout developers attribute an `age-factor’ to the fall in rental values.

Development in Cambridge Layout hasn’t kept up with the rest of the neighboring localities,’’ observes Rawal. “Not only does it have bad infrastructure, the buildings in the area are ageing. These two factors have contributed to down-valuing the locality by the emerging IT segment which primarily drives the rental market in Bangalore.

Source : TOI