Bengaluru’s skyrocketing housing rents are becoming a major concern, as they are outpacing salary growth and putting immense financial pressure on tenants. The situation has sparked heated discussions online, particularly after a viral post on the platform Grapevine, which was later reported by Business Today. The post highlighted how rapidly increasing rental costs are making it increasingly difficult for middle-class professionals, young IT employees, and even senior executives to afford a decent home in the city.
The post stated that rental prices in Bengaluru’s prime locations, such as Koramangala, Indiranagar, and HSR Layout, have surged to nearly ₹90,000 for a three-bedroom apartment, while even in Sarjapur Road, Bellandur, and Whitefield—areas near major IT hubs—rents now start at ₹70,000 for similar apartments. Many tenants have expressed frustration, saying that despite working in high-paying IT jobs, they are struggling to manage household expenses due to soaring rental rates.
What’s even more alarming is that the issue is not restricted to Bengaluru alone. Residents of Delhi NCR and Mumbai are also experiencing similar difficulties as rental costs continue to rise in major metropolitan cities. One tenant shared his personal experience, stating that his annual rent was equivalent to his yearly CTC, leaving him with minimal savings. Another individual said that even after receiving an 8% salary hike, his rent increased by 10%, forcing him to cut down on other essential expenses to manage the higher costs. Another tenant shared that he felt like he was working only to pay rent, as a large portion of his salary went directly to his landlord, leaving little room for savings or discretionary spending.
Industry experts confirm that Bengaluru has now become one of the costliest rental markets in India. According to a recent ANAROCK Group report, rental prices in the city’s top residential areas have increased by over 40% between late 2022 and early 2024, significantly impacting affordability. Aditya Kushwaha, CEO of Axis Ecorp, described Bengaluru as India’s “hottest residential market”, pointing out that rental rates have nearly doubled since 2023, making it increasingly unaffordable for many residents.
The ongoing crisis has led to growing debates about potential solutions. Some renters believe that moving to the outskirts of Bengaluru or shifting to developing suburbs such as Yelahanka, Hoskote, and Nelamangala could provide some relief. Others argue that, despite high property prices, purchasing a home might be a better long-term investment compared to paying exorbitant rents indefinitely.
Several tenants have blamed the rising rental costs on the increasing demand for shared housing, where groups of bachelors rent large apartments and split expenses. This trend has contributed to sustained high demand, preventing rental prices from stabilizing. Landlords, recognizing this demand, have continued to increase rents aggressively, making it difficult for families and individual tenants to negotiate lower prices.
With Bengaluru’s continued growth as an IT and startup hub, the housing affordability crisis is expected to persist unless strong rent control policies, affordable housing projects, and better urban planning measures are implemented. Experts suggest that government intervention may be necessary to regulate rental hikes, encourage developers to build more affordable housing units, and ensure that the city’s rapid expansion does not come at the cost of its residents' financial well-being.
As discussions continue, many residents are left grappling with difficult financial choices, trying to balance their desire to live close to their workplaces with the harsh reality of escalating rental costs. The coming months will be crucial in determining whether Bengaluru’s housing market stabilizes or whether tenants will have to continue bearing the brunt of rising living expenses.
