These people know that its tough for the people to move as they are settled there and kids are going to near by school, so they are simply using the situation and taking advantage of the same.
Its true that there are / were many people in queue to get a place but that's with old rent, but with this new rent, I doubt much people would interested in a place which is far away from city.

Opening one lulu branch is not the reason to increase the rent, its all about greed and using the situation.