The real estate in Bengaluru is witnessing an extraordinary shift in tactics. The rising prices of assets in India's Silicon Valley have triggered a movement now known as “Sell-and-Stay” in the resale sector. More homeowners are selling off their properties but also negotiating for six months to a year to remain as tenants in the same house.
What is the ‘Sell-and-Stay’ Model?
In a traditional real estate transaction, the seller leaves the premises as soon as the sale deed is registered. However, in the current context of the Bengaluru market, sellers are now adding a special clause to their agreements: the right to lease back their own dwelling. The seller gets the full amount of the sale but still occupies the house by making a monthly rent with pre-determined conditions. The period may last six months upwards, or a year.
Why Sellers are Choosing to Stay
The main cause of this phenomenon is the staggering gap of time until new under-construction apartments come on the market and the severe shortage in ready-to-move-in homes in high potential hotspots such as Sarjapur Road, Whitefield and Bellandur.
Harnessing Peak Prices
Sellers feel that they ought to be maximizing resale prices now rather than trying to lock in a price level in the long run. Transition Buffer: Several sellers are transferring into new villas or larger apartments that are nearing the finish line. The “stay” period gives them a stress-less opportunity to finish up interiors without moving again. School Cycles: Families frequently sell during the middle of an academic year but want to stay until the term is over in an effort not to disrupt their children’s schooling.
Buyer Perspective: A Winner or Loser?
For buyers, and particularly investors, this trend is instant Rental Yield from day one. They aren’t forced to scout for tenants or pay brokerage fees to put the house on the market. Then, the fact that the previous owner is a tenant usually keeps the properties in very good condition during transition. Yet end-users who are already paying rent individually face something of a headwind to this trend, as they end up continuing their own rentals while servicing EMI payments for the new home they just purchased.
Market Implications
According to real estate advisors in Bengaluru, the phenomenon continues in the ₹1.5 crore to ₹4 crore range. By keeping themselves as tenants behind, the sellers escape the logistical nightmare set in by so-called “double-shifting” renting a temporary home and moving back to a permanent one. Having seen Bengaluru's ready-to-move-in inventory at a historic low, and with the market expected to follow suit, market-speakers suggest 'Sell-and-Stay' will be a common negotiation tool for the 2026 resale segment.
