Living becomes expensive in IT hub

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Economy is going through rough patch. It is visible in growth forecasts downgrade by financial institutions. On top of it impact of interest rate hike has started becoming visible. Amidst all this we have a news from real estate sector that will put a dent on your pocket. The latest update is from the report of property consultant firm Anarock. It stated that housing rent in major cities have increased in last one year. Higher demand for rental housing after covid is considered as major factor for this.

For the year 2022-23, Anarock  stated in its report that demand for renting houses have gone up in most of the cities. You might have felt happy after covid lockdowns got over. However, opening up of economy had its after effects and spilled over in housing rent. As economy resumed, people started going back to the offices, childern resumed their schools and that meant they had to go back to their respective cities from their native home.

One industry in which lot of people enjoyed work from home was IT. Now which in India is IT hub? Well that’s none other than Bengaluru. So naturally, when IT people started coming back to offices in Bengaluru from their native home towns, they looked to rent houses. This increased demand of rental houses in Bengaluru which in turn led to huge price increase.

In Bengaluru’s Marathahalli-ORR and Thanisandra Main Road, Anarock reported that values of residentials in Q1 2023 went up by 24% from same period last year. The Whitefield region witnessed second highest increase in rental rates across seven major cities. Average rent in Whitefield increased from Rs 21,000 per month to Rs 26,000 per month in 1 year.

Bengaluru is IT hub and IT has atttacted lot of youth. Youth is not sure if they will stay in same city for ever. So they would prefer staying on rent than buying a house. This factor may continue to play in Bengaluru.