Why Millennials in Bengaluru Are Opting for 1 BHK Homes
The demand for 1 BHK homes is on the rise among millennials in Bengaluru, driven by high rental yields, affordability, and alternative business models.
Bengaluru1 Bhk HomesMillennialsReal EstateRental YieldsInvestmentProperty PricesReal Estate MumbaiAug 03, 2024
The high rental yields in Bengaluru, ranging from 4-5%, have made purchasing a 1 BHK home an attractive option for many. With property prices surging by 10-12% year-on-year, investors are opting for 1 BHK units over traditional 2 BHK homes. Moreover, security deposits in the city range between 5-10 months' rent, making it easier for buyers to convert their monthly rent into EMI.
Developers are also planning to give more attention to the 1 BHK segment. According to Anarock Research, out of the total 650 projects launched in Bengaluru between 2022 to H1 2024, merely 115 projects offered 1 BHK units, accounting for just 18% of the total. However, developers like Concorde are now allocating a higher share to 1 BHK units in their projects.
The trend is driven by the city's growing IT industry, which has created a high demand for housing, particularly among young professionals. The 1 BHK projects are doing well in areas close to IT offices, hospitals, and colleges. Real estate developers have reported a 40 60 split in terms of buyers, with 40% purchasing for end-use and 60% for generating rental income or benefiting from value appreciation.
The growth in demand for 1 BHK homes is not limited to traditional buyers. The city is also witnessing an increase in demand for Airbnb-style rentals, driving the preference for one-bedroom properties as an investment opportunity. As such, developers are expected to focus more on the 1 BHK segment in the coming years.
Frequently Asked Questions
What is the current demand for 1 BHK homes in Bengaluru?
The demand for 1 BHK homes is on the rise, driven by high rental yields, affordability, and alternative business models.
What is the typical age range of buyers of 1 BHK homes in Bengaluru?
The typical age range of buyers of 1 BHK homes in Bengaluru is between 27-35 years for end-use and 35-50 years for investment purposes.
What are the main reasons behind the rise in demand for 1 BHK homes in Bengaluru?
The main reasons behind the rise in demand for 1 BHK homes in Bengaluru include high rental yields, affordability, and alternative business models.
How are developers responding to the rise in demand for 1 BHK homes?
Developers are planning to give more attention to the 1 BHK segment, allocating a higher share to 1 BHK units in their projects.
What is the expected growth trend for 1 BHK homes in Bengaluru?
The demand for 1 BHK homes is expected to continue to grow, driven by the city's growing IT industry and the preference for one-bedroom properties as an investment opportunity.
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