2023 IS THE YEAR TO INVEST IN RENTAL HOMES IN BANGALORE - HERE'S WHY
Investing in a rental property is a prospect many landlords are looking at today due to the increase in demand for the need of rental homes, especially in a metropolitan and IT hub like Bangalore. Many millennials are shifting to the town for work and seeking flats for rent in Whitefield, Bangalore, or searching for "1BHK on rent near me" online in localities like Koramangala or Jayanagar. Landlords must consider this an opportunity to invest in rental housing real estate to attain high yields.
The real estate market will be on the rise in 2023, especially in residential sales, having increased by 51%. Research shows there will be a 7.5% growth across India in housing prices. Despite that, the housing sales in the top cities in the country are expected to breach 2014's peak sales. The cost of properties is up by 7%-10% in good localities. 2023 is the time to invest in rental homes, especially in Bangalore. Landlords can expect a significant profit increase through yields due to the high demand. But why choose this city? That is the next question that comes across the minds of the landlords. The following section will highlight this city's advantages over other top metropolitan cities in India.
Why choose Bangalore to invest in rental homes?
The housing real estate industry is predicted to grow from INR 12,000 crore in 2019 to INR 65,000 crore in 2024, contributing to 15% of the country's GDP. Many millennials are searching for "1BHK on rent near me", specifically flats for rent in Whitefield, Bangalore. Due to the rise in demand, it is the best time to eye properties for rental homes in this city. The following points will also add value to why the investment must be made in Bangalore over other cities:
Growing Economy:
Due to the city's large infrastructure development and multiple startups and IT sectors, it is ideal to invest in houses for rent here. Many career-oriented individuals migrating to the city seek residence and ease of access to their workplaces. Today, various areas in the city, like Whitefield, Koramangala, Jayanagar, etc., are well-connected through BMTC buses or the city's metro.
Growing Housing Demands:
The population growth in India has increased the need for more housing. Most millennials are moving here for better employment and quality of life. It has led to a high demand for flats for rent in Whitefield Bangalore and other localities in the city. People living in Whitefield, Sarjapur, Koramangla, etc., frequently search "1BHK on rent near me", which shows a gap in the supply of homes in the city. It is the best time to invest in real estate to build homes for rent to fulfill the needs of the growing population.
Higher Rental Yields:
The city has become an attractive destination for rental flats investment for real estate investors. As per a survey, the average rental yield in Bangalore is between 5-7%. Even in more densely populated cities like Mumbai, the average yield is only 3.5%. It shows that the landlord has an advantage in investing in Bangalore over other cities.
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FAQs
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What is the application process like?
The application process is typically like a KYC process to get to know our customers.
What are the common lease terms?
The rental contract is for a standard of 11 months. However, you can choose how long you want to stay.
Can I renew my lease at the end of the term?
Yes, you have the option to renew your rental agreement whenever you wish to.
Is there any Commitment/Lock in period?
Lock in period is a commitment given by the tenants to us in order to avail free common area maintenance charge. Lock-in period should be a minimum of 6 months to avail free common area maintenance charge.
Can you renew or update only the lock in period?
No, once the contract is made you cannot update or change the lock-in period or any other terms.
Are they any hidden charges?
Being fair &transparent is our core value and we inform all our tenants about our terms &conditions in detail prior to the booking. There are no hidden charges or terms.
What is the difference between contract period and lock-in period?
Both aspects operate independently. Contract period is the 11 month legal term under which tenants will rent the flat with KOTS. Renewal of contracts is possible. On the other hand, the lock-in period refers to the duration for which the tenant commits to remain without terminating the contract, enabling them to take advantage of the free common area maintenance charges offered.
What happens if you terminate the contract (or) vacate the home during the Lock-In period ?
The common area maintenance charges offered will be reversed and you will be charged monthly common area maintenance charges for the entire stay duration.
Is there any notice period to terminate the contract?
Yes, the tenants have to serve 45 days notice period before they terminate the contract.
Are there any painting charges or move out charges?
Move out charges include painting charges to be paid (one time) by the Sub-Lessee in advance or in pre-paid manner at the time of booking the flat. If the rented flat is of Studio / 1BHK flat, painting charges are Rs 14,500 (Fourteen thousand five hundred.) and if the rented flat is a 2BHK flat, painting charges are Rs 19,500 (Nineteen thousand five hundred.).
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