Bangalore: Apartment prices in Bangalore’s bustling market for flat houses are soaring and demand is growing for the apartments.
A group of professionals is looking for apartments to rent in the bustling, residential neighbourhood of Kottapuram, which has a population of more than 1 million.
“I can afford one in my house and that’s the main thing,” said Ravi Sreenivasan, a real estate agent from Kottaraswamyam in Bangalore, as he pointed to the house on a street near the intersection of Thakur Road and Nirmal Road.
“There is no other place like that for me,” he added.
But some experts say the trend is already out of control.
“We are seeing a massive increase in the demand for apartments in the area,” said Kunal Ramakrishnan, a property analyst at HUF Realty Advisors.
“People are coming to Bangalore from all over the country.
They are looking for an apartment to live in and it’s happening now.”
Many of the buyers are from Bangalore’s middle and upper classes who have migrated to the city from the country’s north-east.
“These people are the future of Bangalore,” said Ramakumar.
He pointed to a young couple, Rani and Anurag, who are in the process of buying a flat on the outskirts of Kolkata, with a deposit of Rs 1.5 lakh.
Rani is a real-estate agent and Anu is a marketing director.
“They have a baby, so they are trying to save their money,” said Anu.
Rodda and Anil are looking at a two-bedroom flat in the middle of Kollam, a small town on the coast in the state of Karnataka, where the city has about 1 million residents.
“The cost of living in Bangalore is so high and so the rents are so high, that we have to find a cheaper place to live,” said Shubham Nandini, who runs a mobile service in the city for the elderly.
“Even though the rent is high, there is an incentive for people to rent,” she said.
Rent is a factor that has helped the couple, who have lived in Kollams flat for four years, get by.
“It’s not as expensive as some places, but you are paying for your own space,” said Nandinis husband.
He is also the owner of a small company, which provides marketing and social services.
“Most people are coming from the North East and the Middle East,” said V.S. Venkateshwaran, the founder of a realty consultancy, and the owner and chairman of the Karnataka Real Estate Association (KREA).
“They want to live somewhere that’s affordable.
If they move to Kollarams, they will have a much better life.”
For most of the residents, the rental market is driven by the cost of their home.
“When you are in a home, you have to pay the monthly rent, and if you don’t pay it, the rent goes up,” said the housekeeper at the home where the couple have been staying.
“And when the rent rises, the next tenant will have to buy the property.”
For these owners, there’s also the option of selling their property to pay off the mortgage.
“You don’t have to sell the property,” said Venkadeshwaram, “You can sell it for a few hundred rupees (about $25) or even for a lot more.”
But most of these owners have not been able to find an apartment with a market rate that matches their current incomes.
The problem is that rents are rising fast in the neighbourhood, and many are worried about the cost.
“Rents in Kottampuram are going up every year,” said Sudhir Kumar, the head of a construction firm in Kolkam.
“If you don`t get a mortgage, you will be forced to sell.”
The owner of the flat in Kokkurams flat, Ramkumar, says the average rent in his neighbourhood is about $800 a month, but he’s not able to afford that.
“My house is just about half of what it was before, but the prices have gone up a lot,” he said.
He added that his mortgage payments are too high, and he has been evicted from the flat several times.
“In the past, I didn’t want to move out,” he told ABC News.
“But now, I can’t afford to move.”
Renters from the area have complained that there is a shortage of available rental properties in Kattampurams neighbourhood, which is one of the hottest rental markets in the country, and that they have been waiting for months to find somewhere to live. “This