PNN
Bangalore (Karnataka) [India], June 6: According to Oxford Economics, The Silicon Valley of India will be the fastest-growing city in Asia-Pacific in 2023, competing with cities like Beijing and Tokyo. The city's economy is expected to rise by 6%, affecting all segments, including the rental industry. There is an increase in individuals searching for 1BHK flats for rent in Whitefield, the IT hub of the city. As a result, Bangalore will see a steep rise in residents migrating from different parts of the country due to the shift from work-from-home back to office. From skyrocketing rent prices to tenant issues, Kots, the Leasing Company based in Whitefield, Bangalore, is looking to bridge the gap in the rental housing industry.
Bangalore's sudden rental spike by 30% results from many combining factors.
- The rapid increase in demand for 1BHK flats for rent in Whitefield, Indiranagar, Koramangala, and other top rental localities has led to a gap in the rental market. The 3% increase in residential units in 2022 filled out fast due to people returning to the office. Over 50% of the population in the city is looking for 1BHK/studio rental homes. There is a large demand v/s supply gap in the market.
- Another factor leading to the rental value rise is the landlords are making up for the passive income losses during the COVID-19 lockdown. Most individuals returned to their hometowns, creating home vacancies. Now, there needs to be a better match in the demand v/s supply.
Apart from rising rents, the tenant faces issues and unsatisfactory rental experiences. Many faced problems for over a decade due to the landlords' preferences.
Kots has adopted the BTR (Build-To-Rent) model to address these issues in the rental market to bridge the gap between the tenant & landlord. BTR is a rental model that provides affordable, livable housing where investors assist in its construction. The real estate market in the country needs to be more organised and provide information asymmetry. Over 10.2 million houses are vacant in India. This data contrasts the data showing a shortage of 19 million houses. Hence, the BTR model ensures the process is optimised, sustainable and organised. The model can also drive the rental yield from 3% to 8%.
Kots is a leasing company that provides modern tenants with relevant 1BHK and studio homes. They aim to optimise the product for a better tenant fit, bridging the gap between landlord and tenant. They are among the first companies to adopt the BTR model in Whitefield. Their homes are fully furnished and managed. Unlike PGs and co-living spaces, Kots homes are unique in the following ways:
- Better Quality Homes: Kots offers studios and 1BHK flats for rent in Whitefield, offering a premium living experience.
- Better Home Locality: Kots understands that the locality of a home makes a significant difference. All the Kots properties are in better localities than other apartments in East Bangalore.
- Better Value for Money: Kots offers 1BHK and studio apartments with amenities like laundry and housekeeping services, high-speed WiFi, and water and power supply backup.
- Better Managed and Maintained: Kots offers digitally-equipped homes that are professionally managed. They also have 24/7 security surveillance, ensuring the safety of the tenants.
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