Bengaluru Techies Shift to Affordable Outskirts as Rental Prices Drop

After a surge in rental demand over the past two years, Bengaluru tech professionals are relocating from IT corridors to more affordable outskirts. Brokers report that rental prices in IT suburbs like Whitefield have decreased by 15-20% year-on-year.

A couple working in IT recently moved from Sarjapura’s prime area to its outskirts, finding a 3BHK for Rs 38,000, compared to 2BHKs in Sarjapura starting at Rs 35,000-40,000. The eastern IT corridor includes Whitefield, Hoodi, Outer Ring Road, and Sarjapur Road, with outskirts like Varthur, Kundalahalli, and Channasandra becoming popular for their lower rents.

Experts note that increased inventory has provided more options for prospective tenants. During mid-2023, Bengaluru’s real estate market saw fierce competition, with tenants bidding aggressively for apartments, resulting in a 20-40% rental hike in prime IT corridors.

Sunil Singh, Vice President of Realty Corp, observed a price correction in April-June 2024 as more inventory was added. A Cushman and Wakefield report highlighted 8,850 new units in Q1 2024, a 14% year-on-year growth, with Whitefield accounting for 35%. ANAROCK predicts 51,685 units will be delivered in 2024, slightly down from 52,565 in 2023.

Rental prices in suburbs like Kadugodi, Hoodi, and Channasandra have dropped to Rs 30,000-35,000 from Rs 40,000 a year ago. With hybrid work culture and metro connectivity, renters are increasingly considering areas like Old Madras Road and KR Puram. Landlords, facing a demand-supply mismatch, have begun reducing rents by Rs 10,000-15,000, even in prime locations like Koramangala.