RENTAL MARKET IN BANGALORE


THE RENTAL MARKET OF RESIDENTIAL AND COMMERCIAL BUILDINGS HAVE TAKEN A BEATING AND THE RENTS ARE DOWN BY 5% TO 25% DEPENDING UPON THE LOCATION.  THOUGH, THE COMMERCIAL BUILDINGS HAVE 50% TO 75% OCCUPANCY RATE, BUT THE DEMAND IS STAGNANT AND THERE IS ABUNDANT SUPPLY, NATURALLY, THE RENTAL REVENUE IS SLIDING.

THE RESIDENTIAL BUILDINGS, INCLUDING APARTMENTS IS VERY BADLY AFFECTED AND ESPECIALLY THE SINGLE BED ROOM AND TWO BED ROOM HOUSES AND APARTMENTS WHICH WERE BEING RENTED OUT AT EXORBITANT RENTS IN THE RANGE OF RS.10,000/- TO RS.20,000/-, IN ALL MOST ALL THE AREAS ARE DOWN BY ALL MOST 10% TO 30% AND THE OCCUPANCY RATES ARE DOWN BY 25%.

THOUGH, THE DEMAND HAS COME DOWN, IN SOME GOOD APARTMENT COMPLEXES OR BLOCKS, THE RENTAL RATES HAVE REMAINED STAGNANT IN BANGALORE EAST AND NORTH TALUKS, WHERE THERE IS CONCENTRATION OF IT INDUSTRY.

THE RETURN ON INVESTMENT THROUGH RENTAL INCOME HAS COME DOWN CONSIDERABLY AND INVESTORS ARE SLIGHTLY WARY ABOUT INVESTING WITH THE TOP BUILDERS.  

THINKING OF SAVING SOME MONEY, IF YOU ARE A TENANT, LOOK FOR A NEW ACCOMMODATION WITH LOW RENTS. 

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