Over the past few months, rental prices in certain areas of Bengaluru, known as the Information Technology (IT) capital of India, have surged up to 40 percent. As a result, many white-collar workers are finding it difficult to afford spacious apartments in upscale neighborhoods.

Following the pandemic, as the city's economy and private sector began to recover, landlords increased their rental rates significantly in an effort to recover the financial losses they incurred during the pandemic when tenants had temporarily relocated to their hometowns.

According to experts, it was inevitable that the rental prices of homes in Bangalore would increase as the pandemic's third wave subsided and office occupancy rates returned to pre-pandemic levels.

Getting a rental property in Bangalore has become no less than cracking an important job interview!

In certain neighborhoods in central Bangalore, finding a rental home has become an incredibly arduous task due to a severe shortage of supply. Estate agents and landlords have become extremely picky and are demanding LinkedIn profiles and resumes from prospective renters. Multiple interview rounds, including Zoom calls, have become commonplace.

The Outer Ring Road (ORR) area and Whitefield are the hardest hit, with around 350 companies employing one million workers in a 17-kilometer stretch. This high concentration of workers has made it extremely difficult to find a rental home within a reasonable distance.

For those searching for a rental home, the process can be incredibly stressful and time-consuming, taking weeks or even months to find a suitable place. Even then, the rent can be exorbitant, with some people paying 1.5 times the rent for half the size of their previous apartment.

The situation has become so dire that some landlords are ignoring the terms of their contracts and hiking up rent prices without warning. When questioned, they simply tell tenants to leave if they don't like it. This has led to frustration and anger among renters, with many taking to social media to voice their concerns.

The struggle to find affordable housing in Bangalore has become a battle for tech workers, who are facing rents that have doubled in just one year. The stress of this situation is not only impacting their search for a home but also their health and work.

Why should you buy a home in Bangalore? How is it better than renting?

Bengaluru has emerged as the leading real estate market in India with a 21 percent share of quarterly housing sales. This is followed closely by Mumbai with a 20.9 percent share. In recent times, the city has witnessed heightened activity in terms of new property launches, making it an attractive destination for property investors.

With the surge in demand, the cost of renting properties has also skyrocketed. Earlier, a property that would cost Rs 25,000 per month is now available at Rs 45,000. The increase in prices is primarily due to the high demand for properties that are located close to office hubs and near the Metro corridor.

In such a scenario, renting a property in Bengaluru could be financially taxing for tenants. For instance, a tenant may have to pay a rent of Rs 35,000 per month, a security deposit equivalent to 10 month's rent, and society maintenance fees at the rate of Rs 4 per sq ft for a 2,000 sq ft in a Grade A project, leading to an outgo of around Rs 50,000 per month.

Whereas, investing in a 2 BHK apartment situated 10 to 12 km away from the Centre in Whitfield, might cost around INR 70 to 80 lakh. Even if the buyer pays 20 percent upfront, and their loan requirement is Rs 60 lakh, the EMI per month would be around Rs 40,000 to Rs 50,000. With the increase in property values and the possibility of future appreciation, buying a property in Bangalore is a wise investment decision.

Moreover, the demand for property purchases continues to remain robust in Bengaluru. If the property meets the requirements of homebuyers, they are going ahead with the purchase in both the primary and secondary markets. The overall sentiment has gravitated towards homeownership after Covid, as people now prefer owning a house with more space and better amenities, over renting cramped apartments.

While the housing shortage presents a challenge for renters, buying a flat in Bangalore could be a more sustainable and financially viable long-term solution. Instead of being at the mercy of rent hikes and property owners, investing in a home could provide you with a sense of stability and security. Not to mention, homeownership is an excellent way to build long-term wealth.

Now that you've got all your reasons to buy a home in Bangalore rather than renting, make this process super easy by joining hands with Dwello, your ultimate destination of homebuying consultation.