Rentals for high-end villas in Bangalore have experienced a noticeable decline over the past year, primarily attributed to the surge in new villa projects within the city. Additionally, falling numbers of expatriates have further influenced rental prices.
Statistical evidence indicates that the rental market for premier villas has dipped between 25 and 30% in the last twelve months.
According to DTZ India, a leading property consultancy, rental prices in locations such as Whitefield are now markedly lower. Just a year ago, rental values in this area ranged from Rs. 2.5 lakh to Rs. 4 lakh per month, but they have plummeted significantly in the current market.
Similarly, realty firm L J Hooker India reported a comparable decline, noting that even highly desirable properties like Palm Meadows are witnessing a considerable drop in rental prices, decreasing from Rs. 4 lakh to Rs. 3 lakh monthly.
The tightening of budgets by corporations globally has led many companies to reconsider their expatriate staffing. This has resulted in fewer high-net-worth individuals relocating to Bangalore.
In the initial quarter of 2013, L J Hooker India’s CEO, Alexander Moore, pointed out that only 50 expatriates have relocated to Bangalore, a stark contrast from the previous year when this number was twice as high. Companies particularly from Europe have significantly curtailed their budgets.
Last year, a spacious villa complete with a private pool in the exclusive community of Epsilon fetched the highest rental at Rs. 4.25 lakh per month. In contrast, this sought-after area, often referred to as the Beverly Hills of Bangalore, previously enjoyed rentals up to Rs. 17 lakh per month, with multiple properties generally securing rentals exceeding Rs. 7 lakh.
Despite the downward trend in villa rentals, the situation for apartments appears to be different, as their rental prices are witnessing an upward trajectory in Bangalore. Locations such as Sarjapur Road, Whitefield, and the Outer Ring Road area are now experiencing a more favorable rental appreciation.