Bengaluru techies opt for work-from-home; house rents decline over 3 months

By Vinaykumar Patil | First Published Jul 14, 2024, 4:32 PM IST

Over the past few months, Bengaluru's home rentals have dropped as tech professionals opt for remote work. This trend is exacerbated by increased traffic congestion and campaigns prioritizing local employment. Consequently, rental rates in areas like Whitefield and Koramangala have declined, impacting property owners who relied on rental income.

In the past three to four months, the number of home rentals in Bengaluru, often referred to as Silicon City, has plummeted. This trend is attributed to the rising number of tech professionals who, following the end of the financial year, have opted for work-from-home positions, even at reduced salaries. This shift has posed challenges for property owners who built large houses on the outskirts, anticipating rental income.

The financial year ends on March 31st, with the new one commencing on April 1st. This period usually sees salary hikes, transfers, and other company activities. However, there has been a notable increase in techies requesting work-from-home arrangements despite salary increments.

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Bengaluru, being close to the borders of Tamil Nadu, Andhra Pradesh, and Kerala, attracts many techies from these states. These out-of-state professionals often accept lower wages than local job seekers. Consequently, many are opting for remote work, further reducing the number of residents in Bengaluru.

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Techies working in ITBT companies in Bengaluru show little interest in returning to the office post-Covid. Many are content with lower salaries as long as they can work from home. This preference has led to a significant drop in rental rates in areas like Whitefield, Koramangala, and Electronic City. Property owners now find themselves renting to locals at whatever price they can secure.

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Traffic congestion in Bengaluru has worsened since the easing of Covid restrictions. Despite efforts by the traffic police and BBMP, areas like Hebbal Overpass, Electronic City, K.R. Puram, Silk Board, and Koramangala face severe traffic jams.

Commuting to work can take 1 to 2 hours each way, leading to 3-4 hours spent in traffic daily for an 8-hour workday. To avoid this, many employees prefer to work from home, adding an extra hour to their workday but saving commuting time.

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Rental rates for houses in popular areas like Koramangala, Whitefield, KR Puram, Kengeri, Kadugodi, Hoodi, and Channasandra have seen a sharp decline. Previously, 1 BHK houses was rented for 3,000 to 5,000 rupees, 2 BHK houses for 5,000 to 8,000 rupees, and 3 BHK houses for 10,000 rupees. Now, 1 BHK houses are available for 10,000 to 20,000 rupees, 2 BHK houses for 20,000 to 35,000 rupees, and 3 BHK houses for 25,000 to 35,000 rupees.

There has also been a campaign to prioritize employment for Kannadigas in Bengaluru’s IT companies. Allegations have surfaced that HR teams, often from outside Karnataka, favor candidates from North India, Tamil Nadu, Andhra Pradesh, and Kerala. This has led to a social media campaign over the past three months on platforms like Twitter (X), Facebook, Instagram, and LinkedIn, advocating for local employment, and further influencing rental rates.

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