Bengaluru vs. Mumbai: Which City Offers Better Rental Options?
Bengaluru, the IT hub of India, has seen a surge in rental demand in recent years, especially after the pandemic. The city attracts many young professionals and students who prefer to rent rather than buy homes. But how does Bengaluru compare with Mumbai, the financial capital of India, in terms of rental options and prices?
According to a report, rentals in certain pockets in Bengaluru today are almost on par with the most prime locations in Mumbai. Like Worli, Bandra, Juhu, and Versova, with an average rent of Rs 90,000–2 lakh. However, it’s not a strictly like-for-like assessment. While more than 50 percent of the floating population in Bengaluru makes the city a rental-driven market. Mumbai continues to witness high traction in capital sales.
The report cites an example of a 4BHK apartment in Indiranagar. One of the most sought-after areas in Bengaluru, that commands a rent of Rs 2.5 lakh with a deposit of Rs 25 lakh. In comparison, a similar apartment in Worli, Mumbai, would cost Rs 2.75 lakh with a deposit of Rs 50 lakh.
The high rentals in Bengaluru are due to the limited supply of quality housing. The high demand from the IT and start-up sectors. The city also offers better amenities, infrastructure, and connectivity than Mumbai, which suffers from congestion, pollution, and poor public transport.
However, Mumbai still has an edge over Bengaluru regarding capital appreciation and property resale value. The city has a more diverse and stable economy and attracts investors and end-users alike. Mumbai also has a higher per capita income and a more cosmopolitan culture than Bengaluru.
According to a another report, most tenants or renters (32%) fall into the age bracket of 25–35 years. Youth, i.e., 18–25, is the second-highest age bracket tenants fall under. The report also reveals that people use online portals. Such as NoBroker to find homes to rent without paying any brokerage fees. The report also states that the most significant reason people move from one rental home to another is their job.
Another report states that the Mumbai Metropolitan Region and Bengaluru have seen a significant spike in rental demand, resulting in a rise in residential rentals. In both cities, residential rentals have risen 15-20% each compared to the pre-Covid period of 2019.
The report also suggests that it’s time to be a greedy landlord amid India’s rental housing demand boom. The landlords can increase their rent by offering their tenants better facilities, amenities, and services. They can also leverage online platforms to reach more potential tenants and negotiate better deals.
In conclusion, both Bengaluru and Mumbai offer different advantages and disadvantages for renters and landlords. While Bengaluru provides more affordable and spacious rental options with better infrastructure and lifestyle. Mumbai offers more capital appreciation and resale value with more economic diversity and culture. Ultimately, the choice depends on the renters’ and landlords’ personal preferences and needs.
