Is it cheaper to buy a home in Bangalore than rent it? According to a report brought out by a real estate portal, the answer is ‘yes’.
The report on property rentals, brought out by real estate portal 99acres.com, shows how rentals have skyrocketed in the city, so much so that real estate experts recommend that it would be cheaper to buy a home in the city than rent it.
According to the study, Bangalore saw the steepest rise in rentals during the January-March quarter at 13%. It was higher than Mumbai, Pune and Delhi.
As per the latest survey, conducted by Makaan.com, JP Nagar has seen the highest appreciation with rentals moving up by 30%. Marathahalli and Whitefield witnessed 24% and 9% rise in rent real respectively. Indiranagar’s rental value remained steady.
Neville M Vaswani, MD, Vaswani Group, said: “Bangalore has a lower rental rate base compared to Mumbai, and so the 13% rise looks magnified. Considering rental prices were not high to start off with, a 13% increase is actually becomes conspicuous,” he said.
Offering a contradictory view, Ashotosh Limaye, associate director—strategic consulting, Jones Lang Lasalle Meghraj (JLLM), said: “In such situations, capital values appreciate, making it unaffordable for people to shift from renting to buying a property. It is a question of increasing your budget by a few thousand rupees (for renting) as compared to a few lakhs rupees (for buying). People have no choice but to rent.”
Vikram Bapat, executive director– tax & regulatory service–PricewaterhouseCooper (PwC), believes North Bangalore is likely to see the sharpest rise.
“Bangalore is witnessing a shift in focus from the electronic city region towards North Bangalore because of its proximity to the airport along with commercialisation of agricultural land. Going forward, rental values will pick up in the Northern belt of the city, along with the Sarjapur region,” he said
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