– In the wake of water woes, investors are rethinking
– As a result, rents are expected to decrease by 10 to 15 percent
The rents in Bengaluru have not gone down except during the COVID period. However, now it is estimated that apartment rents will decrease by 10 to 15 percent due to the current water crisis. The reason for this is said to be that real estate buyers and investors are reconsidering due to the water crisis in Bengaluru. This problem is particularly prevalent near the IT corridor of the city.
* Unplanned development has led to water scarcity in Bengaluru’s eastern IT corridor and central areas. As ponds and lakes are encroached upon and construction is carried out at one’s will, there is more concern about the availability of water in the future. In this context, investors are reluctant to invest in the Bengaluru housing market. In fact, rents in Bengaluru have increased significantly in the last two years. 2 BHK apartment rents in areas favoured by tech professionals have increased drastically last year. However, due to water scarcity in these areas, investors and tenants are looking towards areas with good water availability, like North Bengaluru and Indiranagar. They are moving away from large gated communities to smaller projects that require less water. This is having an impact on rental prices and the entire housing landscape in Bengaluru.
Experts predict that if the water crisis continues like this, there may be a significant decrease in rental prices. Bengaluru is currently at a critical stage in terms of real estate. In these circumstances, it is said that there is a danger of this water crisis falling on the real sector, as it will play a vital role in real estate purchase decisions.
