5 Best Rental Markets for IT Professionals in Bangalore
At the heart of all economic growth in Bangalore are hardworking IT professionals who drive the engines of the city. Thus, neighbourhoods popular among IT professionals are either already established hotspots or in the process of becoming one. From the high-rise apartments in Bellandur to the upscale homes in Whitefield, we examine five property hotspots preferred by tech workers. Each area offers unique benefits, catering to the diverse needs of Bengaluru’s dynamic workforce. Read along to get a full comparison of the top 5 micro-markets based on location, infrastructure, and rental yield.
Electronic City:
Main Advantage – New Airport to Transform the Location
Infrastructure development transforms the rental prospects of the location. Recently, Tamil Nadu Chief Minister MK Stalin announced the construction of a new airport in Hosur. This development is set to bring significant benefits to Bengaluru’s Electronic City, located just 25 kilometres away from Hosur. For tech professionals living and working in this tech hub, the new airport ensures convenient travelling and reduces commuting times significantly. Currently, the commute from Electronic City to Kempegowda International Airport, situated over 60 kilometres away, can take anywhere from one to three hours. The new airport in Hosur is expected to offer a much-needed alternative, potentially easing the strain on Bengaluru’s existing airport and providing faster connectivity for residents of Electronic City.
Rental Trends
Electronic City, one of South Bengaluru’s major tech hubs, has seen significant rental growth over the past year. Rentals have increased by 10-15% year-on-year, driven by high demand from tech professionals. The area offers a range of housing options, from apartments to paying guest accommodations. A 2 BHK property in Electronic City is currently available at an average rental value of ₹28,000. Despite the presence of a lot of unsold inventory, the demand for rental properties remains strong. Kiran Kumar, vice president at Hanu Reddy Realty, noted that the presence of several paying guest accommodations is eating into the share of apartment landlords, which has kept prices relatively competitive compared to other areas.
High Demand in Bellandur
Main Advantage – High Demand and Prime Location
Bellandur, located in South East Bengaluru, has become one of the most sought-after neighbourhoods for tech professionals. Bounded by Sarjapur Road and HSR Layout, Bellandur is home to several corporate giants such as Intel Technology, LinkedIn, Adobe India, and Wells Fargo. Like every well-developed locality, Bellandur offers smooth connectivity and easy access to social amenities.
Rental Trends
The presence of these major companies has driven up demand for housing in the area. The average rent for a 2 BHK apartment in Bellandur is around ₹40,000, reflecting a 20% increase over the past year. This surge in rental prices is attributed to a supply crunch and the unavailability of sufficient land parcels for new projects. Despite the high costs, the area remains highly desirable due to its strategic location and robust mix of modern apartments and gated societies developed by real estate majors like Prestige Estates, the Embassy Group, and Sobha Ltd. Additionally, several co-living brands have established a presence in Bellandur, catering to the growing demand from young professionals.
Whitefield’s Upscale Market:
Main Advantage – Luxury, Community & Metro Connectivity
Whitefield, situated on the eastern periphery of Bengaluru, is known for its upscale IT and residential hubs. The area has attracted numerous real estate developers, resulting in a wide range of housing options.
Rental Trends
Average residential property prices in Whitefield are around ₹10,850 per square foot, making it one of the pricier areas in Bengaluru. A 1 BHK flat in Whitefield can cost between ₹46.25 lakh and ₹87.50 lakh, with fully furnished units commanding average rentals of ₹28,000. For a 2 BHK, the rent is approximately ₹35,000. The recent operationalization of the Purple Line metro in March 2023 has further boosted Whitefield’s appeal, causing rents to increase by 7-10%. Major real estate brands like Godrej Properties, Prestige Estates, Sumadhura Group, and Sobha Ltd. have multiple projects in Whitefield, offering a blend of luxury and convenience that appeals to tech professionals and their families.
Marathahalli:
Main Advantage – Affordable Housing in Vicinity of IT Hubs
Marathahalli, located on the Outer Ring Road in East Bengaluru, is another preferred residential locale for techies. Its strategic proximity to Whitefield, just 8.6 kilometres away, makes it an attractive choice for professionals working in the IT sector. The region is high indemand owing to the location as well as the afoordable options for resideces. It is a bachalor’s hub and hold strong rental potential.
Rental Trends
The average rent for a 2 BHK apartment in Marathahalli is around ₹32,000. Property prices have appreciated by 10-15% annually, reflecting the high demand for housing in the area. According to data from 99acres, the current average property transaction rate in Marathahalli is ₹9,151 per square foot. However, a local broker pointed out that there is limited land available for upcoming projects, which could pose challenges for future development. Despite this, Marathahalli remains a popular choice due to its excellent connectivity and proximity to major IT hubs.
Emerging Hennur
Main Advantage – Most Sought-After in North Bengaluru
Hennur, located in North Bengaluru, has gained prominence as a preferred residential area for tech professionals, especially after the COVID-19 pandemic. Situated just 6 kilometres from the popular Manyata Tech Park, Hennur offers a convenient living option for IT employees.
Rental Trends
Property prices in Hennur have appreciated by 10-15% over the last year, reflecting the growing demand for housing in the area. A 950-1,200 square foot 2 BHK unit in Hennur rents for ₹32,300 to ₹40,000, while a 1,250-1,630 square foot 3 BHK unit commands a rental of ₹43,100 to ₹55,600. The average residential property rate in Hennur is ₹10,850 per square foot, according to data from 99acres. Additionally, Hennur’s proximity to Kempegowda International Airport, located 25 kilometres from Hebbal, adds to its appeal for tech professionals who frequently travel for work.
Hosur as a Residential Choice
Main Advantage – Affordable and Accessible
Hosur has emerged as a popular residential choice for many techies working in Electronic City. Known for its affordable housing options and quicker connectivity, Hosur offers a viable alternative to the more expensive and congested parts of Bengaluru. The city’s proximity to Electronic City makes it an attractive option for professionals looking to balance work and home life without enduring long and stressful commutes. Many tech employees find that they can get more value for their money in Hosur, enjoying spacious homes at a fraction of the cost compared to other parts of Bengaluru. This affordability, combined with the upcoming airport, is likely to make Hosur even more appealing to tech professionals in the future.
In conclusion, Bengaluru’s real estate market offers a variety of options for tech professionals, each with its unique advantages. Whether it’s the high demand and strategic location of Bellandur, the upscale market of Whitefield, the proximity of Marathahalli, the affordability of Electronic City, or the emerging prominence of Hennur, techies in Bengaluru have plenty of choices to suit their needs and preferences. As the city continues to grow and develop, these neighborhoods will likely remain at the forefront of Bengaluru’s dynamic real estate landscape.
