April 15, 2024 – Bengaluru, once known for its lush green spaces and vibrant IT industry, is now facing a water crisis that is reshaping the city’s rental market. The eastern IT corridor of Whitefield, which used to boast a rental yield of 4 percent, is no longer the preferred choice for tenants and investors.
The ongoing water shortage has led to an increase in the maintenance cost for apartment owners in Whitefield by at least ₹6,000 per month. This has prompted a shift in rental demand towards the north and central corridors of Bengaluru, where piped water is still available. Families that once considered investing in Whitefield are now looking elsewhere, concerned about the sustainability of their investments amid the depleting groundwater table.
The Chief Minister’s announcement of the Cauvery Project Phase-5, which promises to provide 110 liters of water daily to each of the city’s roughly 12 lakh residents by May 2024, offers a glimmer of hope. However, for many, the promise of future water supply does little to alleviate the immediate challenges.
As a result, areas like Hennur and Hebbal in northern Bengaluru are seeing an uptick in rental interest. A 2 BHK in the north costs around ₹27,000-30,000 per month, almost 15 percent lower than prime locations like Indiranagar and Whitefield. The water crisis has underscored the importance of sustainable urban planning and the need for immediate action to address the city’s water scarcity.
