Zerodha's Nikhil Kamath says doubling of rents in Bengaluru 'short-term phenomenon'

There has lately been a lot of debate on whether it is better to buy or rent a house, as Bengaluru is experiencing a doubling of rental prices. Nikhil Kamath, billionaire and co-founder of Zerodha, expressed on Thursday that this increase in rent is only a temporary occurrence. He shared some infographics on Twitter that explained the reason for this surge in rent prices. According to those, the sudden demand for rental properties in cities like Bengaluru and Pune is due to a large influx of people returning to these cities. These people are returning to work in major IT and other companies that are calling them back to the office. The infographics shared by the Zerodha co-founder indicated that the rental prices for standard 1BHK flats in Bengaluru rose by as much as 57 per cent over the last year. Despite this increase in demand for rented spaces, the number of unsold residential properties is currently at an 8-year low. On the other hand, the post-COVID era has proven to be a good time for those looking to purchase property, according to the data shared by Kamath. In 2022, there was a record-high demand for residential properties. Kamath pointed out the contrast between renting and purchasing a property in the current situation. He suggested that the current rise in rental rates is likely to be a temporary trend, as long as the rental rate remains at 3 per cent and the housing loan rates remain above 8 per cent. He also expressed his belief that housing prices will likely decrease instead of rental rates increasing to reach equilibrium. He stated, “If I had to bet on house prices going down vs rent going up to reach equilibrium, my bet is still on the former.” https://twitter.com/nikhilkamathcio/status/1651211568045244417 A report in Bloomberg earlier revealed that rental rates in Bengaluru, India’s technology hub, have almost doubled since the beginning of last year. This makes it the most sought-after residential market in the country. Market researchers have found that landlords in Bengaluru now charge a higher percentage of their property’s value as rent compared to Mumbai, which is considered the country’s financial centre. Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.