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Q.

What is the Rent Hike in Bangalore?

I’ve been living in a rented 2 BHK apartment in Bangalore for the past two years, and my landlord recently informed me about a rent hike. I’m trying to understand what the usual rent increase percentage is in Bangalore and what factors influence it. Can someone share their experience or guide me on what’s considered a reasonable rent hike here?

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When I first shifted to a new society in Bangalore, I thought I could relax for a few years once I locked in my rent. But, surprise! At the end of my 11-month contract, the landlord mentioned raising the rent. He told me the yearly rent hike in Bangalore is 10%. As I was unsure about it, I asked my colleague, who has been staying in the Bangalore rental property for the last 5 years. Here is what he told me.

What is the Average Rent Hike in Bangalore?

The standard rental hike is 5% increase for an 11-month agreement. My colleague told me that any respectable owner is open to a market-based raise. Bangalore's rental market has peaked, and so has the rental hike.

However, it depends on the following factors:

  • Property location

  • Society rules

  • Type of the property

  • Clause in the rental agreement

  • Current market demands

  • Infrastructure growth and metro expansion

It completely depends on the agreement between the tenant and the owner. When signing a lease, always inquire about the increment in yearly rent percentage. Additionally, you can always negotiate based on your history as a tenant and actual market trends when it's time for a renewal.

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