by THO
In 2023-24, Bengaluru saw a major surge in residential rentals, increasing rents by more than 20%-30%. In a city starved of rental properties, tenants have been struggling to cope with the ever-changing demands of the landlords, some of whom have gone to the extent of checking out LinkedIn profiles of their prospective tenants.
However, towards the end of 2024, the residential sector in the city witnessed a stagnancy, with landlords reducing rents by 5% to 10% in city centres. Industry experts believe that the main reason for citywide rental stabilisation is the reduced supply-demand ratio gap.
“Several places in the city, like Electronic City and the eastern IT corridor of Whitefield, saw a major supply of inventories in the last half of 2024, reducing the gap between demand and supply. However, with demand picking up again, we expect major rental appreciation in 2025,” Sunil Singh, director of Realty Corps said.
Real estate experts say several outskirts of the eastern IT corridor of Whitefield and north Bengaluru are among the top places that are likely to see major rental appreciation in 2025.
Here are the top places expected to see rental appreciation in 2025:
Outskirts of Whitefield and Sarjapura
Rentals in the prime areas of Whitefield and Sarjapura in the southeast—being snapped up vigorously by techies—saw a major rental surge of nearly 20-25 percent in the last two years.
“This led to several shifts from the IT corridor to the outskirts, where homes remain affordable. Areas like Glenwood Layout and Varthur Road remain in demand due to their close proximity to the IT corridor. In the recent months, we have received major queries for these areas, especially from people looking forward to moving to Bengaluru,” Singh said.
The outskirts of Whitefield typically have a monthly rent of RS 25,000 for a 2BHK with a 6-9 month deposit. Additionally, a 2BHK on the outskirts of Sarjapura Road is being rented out for ₹20,000. Experts say they expect these areas to appreciate by 10%-20% in 2025.
However, areas like Whitefield witnessed major water shortages in 2023-24 due to unplanned real estate development and the infrastructural boom. Several apartments in posh gated societies received only limited water slots per day.
Additionally, Whitefield also sees major traffic bottlenecks, especially close to the IT corridor. The recently started Namma Metro helped greatly decongest the area.
North Bengaluru
North Bengaluru started as an industrial area about two decades ago. However, the construction of Bengaluru International Airport and the Manyata Tech Park were game changers that led to the development of several micro markets, such as Hebbal, Yelahanka, and Thanisandra Main Road.
Experts say areas like Devanahalli and Bagalur (close to the international airport) and Nelamangala in the northwest are one of the upcoming areas for rental appreciation due to its proximity to the northern IT corridor and the airport.
For example, several companies, including Amazon India, have recently relocated their office space to an area close to the airport, driving major real estate demand in the area. Additionally, other companies like Foxconn acquiring land close to Devanahalli to set up its iPhone factory has also added to the real estate momentum, Kiran Kumar, vice president of Hanu Reddy Realty, said.
A 2BHK in these areas is being rented out for ₹35,000-38,000 monthly. “We see north Bengaluru growing faster than several prime areas in the city. And we anticipate easily 20-25 percent rental appreciation in 2025,” Singh added.
However, infrastructure challenges and flooding continue to plague north Bengaluru. The area witnessed major flooding in August 2022 and severe inundation after heavy rainfall.
However, experts say the upcoming Bengaluru metro red line linking Sarjapur to Hebbal—-—targeting operation in 2031—will be a major gamechanger for infra challenges.
Other places to see rental appreciation
Experts add that other prime areas like Koramangala, Indiranagar, and HSR Layout—which continue to remain in high demand for mid-high and luxury inventories—are expected to continue to appreciate over the year. However, inventory availability remains a challenge in these areas, which continues to drive real estate prices in the areas.
“We see places like KR Puram coming back to demand due to the majority of factories being set up in its proximity, especially in places like Hoskote and Narsapura. Today, a 2BHK in these areas commands ₹25,000-28,000 of monthly rent, compared to ₹22,000-24,000 rent six months back,” Singh added.
Among the other places, experts say they have started witnessing major demand in south Bengaluru’s Kanakapura Road. The real estate prices in Kanakapura Road are relatively cheaper than in some other parts, making it attractive for investments. The average residential rentals in the area vary from ₹25,000 per month to ₹30,000-35,000, depending on the type of development.
Several infrastructure projects have been a major boost, including making the access to Kanakapura Road a four-lane highway. Additionally, NICE Road, which connects the area to the southern IT Hub of Electronic City, and Mysuru Road, which connects Ramanagaram to Mysuru, have also been significant incentives for investments.
