The mass exodus witnessed at the start of the pandemic two years back has come full circle with offices and schools reopening in 2022. Properties getting rented out within 6 hours of being listed have grown by 3x Y-o-Y in the last 3 months, with Bangalore witnessing a 5x growth, according to the latest trend being witnessed by Proptech unicorn NoBroker on its platform.
NoBroker being a transaction platform has witnessed 18,000 new rental properties rented out in Bengaluru in less than 24 hours’ post being listed. While the figure stands at 7000-8000 closures for Mumbai, Chennai and Pune were at 5000, and Hyderabad at 4800. All of this only in the last 3 months. Around 35-40% of these deals are getting closed in less than 6 hours after rental properties are posted.
Finding a gated community apartment with amenities in top Bengaluru localities like Bellandur, Sarjapur main road, and Marathahalli is a game of chance, where properties rarely remain available beyond a day. With all companies adopting a hybrid policy with respect to working from the office, employees will be spending a lot of their time at home. This has translated into massive demand for apartments in gated communities with amenities such as power back up.
A similar trend, albeit to a lesser degree, is being noticed in the top localities in Mumbai (Thane West, Andheri West, and Andheri East), Pune (Wakad, Kharadi and Hadapsar), Chennai (Velachery, Thoraipakkam and Madipakkam), and Hyderabad (Kukatpally, Gachibowli and Kondapur).
While it was very easy to find your home in a gated community in these localities until Feb 2022, over the last 3 months, most top societies are at full occupancy and any available property gets rented out in a matter of hours.
Commenting on the same, Amit Agarwal, CEO and Co-Founder of NoBroker, said, “It is mind-boggling to see properties getting rented out in a few hours. Tenants waiting for the weekend to make house-visits are often shocked to know that property is gone now. High-demand societies are seeing a 10-15% uptick in rental value. Opening of schools and offices have had a dual effect in terms of pace at which tenants have returned to metro cities. This is the exact opposite of what happened during Covid. Owners were ready to negotiate rent downward and provide leeway in terms since many properties were struggling to get tenants, post hometown-migration of many tenants.”
Rohit, an IT professional, was provided with 2 weeks’ stay in a hotel by his company while he tried to find a rental property with another colleague of his. While working through the week, he shortlisted 4-5 good properties with a plan to visit them over the weekend. By the weekend, however, none of those properties were available. The only way anybody stands a chance at finalising a gated society apartment in the high demand areas is by visiting the property within the 24 hours instead of waiting for the weekend.
Kulkarni, owner of an apartment in a gated society in the Bellandur locality in Bangalore, was overwhelmed with calls from tenants seeking his property for rent within a few minutes of listing it on NoBroker. His apartment was rented out within 2 hours with a rent appreciation of 25% by an IT professional working in a Tech park near his society.
The top Indian cities are experiencing an average rent appreciation of over 12% over last year. The high demand areas are seeing an increase in the range of 15-20% for Bengaluru and in the range of 12-15% for Mumbai, Pune, Chennai and Hyderabad.