In booming Bengaluru, PG room rates rival apartment rentals

Paying guest rentals in Bengaluru have risen by 25-40 per cent due to huge demand from students and working professionals, with the rates rivalling and even exceeding apartment rentals in the heart of the city.

Over the past year, many new PGs spaces have mushroomed around the city, which is a tech as well as an education hub, amid a post-pandemic boom.

A ladies' PG not too far from the Indiranagar metro station now asks Rs 13,000 but cost a thousand rupees less just about four months ago.

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PGs close to colleges in the heart of the city demand as much as Rs 21,000 for a single-sharing room, Rs 17,000 for a double-sharing room, and a little over Rs 13,000 for a triple-sharing room.

Several brokers noted that rentals had shot up over the past year. “We can see at least a 30-40 per cent increase in rentals, especially in the IT corridor, because offices are opening, demand for accommodation is going up, and salaries are also hiked," said a broker who asked to remain anonymous.

Ruthvi, a master’s student, noted that one of her friends who lives in a triple-sharing room in the same PG as her now pays Rs 10,800, a 38 per cent hike from the Rs 7,800 she used to pay last year.

Sticking to a certain budget means compromising on amenities, space, or location.

Supriya, a law firm employee, wanted to move to a PG near MG Road, Trinity or Indiranagar to be closer to her office in Fraser Town but found many places to be at least 1.5 times to 1.75 times her budget of Rs 10,000.

"I did not want to spend so much money on a place I’d mostly rest in,” she said. Eventually, compromising on location and travel time, she found one near Ejipura within her budget.

With a budget of Rs 12,000, Pavan, an independent researcher, settled for a PG near the Indiranagar metro station that offers basic amenities. "The other PGs I checked around MG Road and Shanthinagar were over budget by 1.5 to 2 times,” he said.

Kadubeesanahalli resident Nireeksha noted that although her budget was below Rs 10,000. She caved in and went for a room that costs Rs 2,000 over her intended budget after a month of searching. "I would have had to compromise on comfort and hygiene in the PGs within my budget so I chose this instead,” she said.

Suresh Hari, Chairman of Credai, Bengaluru, noted that rentals have picked up compared to this period last year. "There has been a 10-20 per cent hike in rentals compared to January-April last year. But I don't think it has majorly affected PGs because they can be considered a category catering to a different section of the population," he said.