Rentals of mid-range (Rs 3,500 to Rs 6,000) residential properties in Bangalore’s south-east (Sarjapur Road, Outer Ring Road, HSR Layout) is up 7 per cent during the last three months. However, in other parts of the city, mid-range properties were the first to react to sluggish market conditions and have seen values coming down 2-3 per cent.
This sudden rise in mid-range property rentals in the south-east is attributed mainly to the large supply of commercial office space, which is facilitating ready-to-move in residential developments for the floating working population and improved social infrastructure.
“This has led to adequate land availability, coupled with overall subdued demand. Tenants in most cases today have more bargaining opportunities over landlords,” Aditi Vijayakar, director-residential services, Cushman & Wakefield India, said. The mid-range markets of Whitefield and Marathahalli saw about 12 per cent depreciation over the last six months on account of an oversupply. On the whole, going by the trend of the last quarter, rental values across the city in most markets remained stable.
According to Zahed Mahmood, director, Sliverline Realty, “Values of property under construction have seen a fall in the range of 2 to 5 per cent whereas there has been a reasonable demand for ready to occupy properties.”
With regard to capital values over the last six months, high-end units witnessed a 1-3 per cent rise whereas mid-range properties appreciated 1-2 per cent in the south-east, north, south-west and off central locations of Vasanth Nagar, Richmond Town and Indiranagar.
North-west and off-central regions of Cox Town, Frazer Town, Banaswadi and Benson Town witnessed stabilisation over the last six months.
