In recent months, Bengaluru has been making headlines, not for its tech boom, but for its skyrocketing rental prices.
Surprisingly, some parts of the city are now rivalling New York suburbs in terms of monthly rent. While many of the localities are still struggling with daily commutes that can take over an hour for just 10 kilometres.
Bengaluru Rent vs New York Suburbs
A 2 BHK apartment in Koramangala now rents for around ₹70,000 per month, while a similar flat in a New York suburb averages ₹80,000. This comparison highlights a growing mismatch between cost and convenience for a city still grappling with infrastructure challenges.
Why Are Rents Rising So Quickly?
There are various reasons for this sudden price surge after the pandemic. Below, we have listed some of the major reasons:
- Return-to-office mandates have brought professionals back to the city in large numbers.
- Colleges and universities have resumed in-person classes, increasing student demand for housing.
- Limited new housing supply, especially in high-demand areas, has given landlords the upper hand.
As a result, rents in locations like North Bengaluru, Whitefield, and Sarjapur Road have increased by 20–30 percent in the past year alone.
High Rent, Low Return on Livability
Despite paying premium prices, tenants are not necessarily getting a better quality of life. Traffic congestion remains a major issue, with peak-hour commutes stretching up to an hour for relatively short distances. Public transport options are still evolving, and metro lines are not yet fully operational across the city.
Additional concerns, such as water shortages, power outages, and poor last-mile connectivity, add to tenant frustrations. In many cases, the high rent is not matched by the services and infrastructure one would expect at such price points.
Should You Consider Buying Instead of Renting?
With rental costs soaring, more residents are exploring the option of homeownership.
Here are a few reasons why buying a house could be a smarter long-term move:
- Stability: Freedom from unpredictable rent hikes and landlord conditions.
- Asset building: Monthly EMIs contribute to ownership, not someone else’s income.
- Tax benefits: Homeowners can claim deductions under Sections 80C and 24 of the Income Tax Act.
- Property appreciation: Growing localities often see steady increases in real estate value.
Localities such as Hebbal, Hennur, Thanisandra, Whitefield, and Sarjapur Road are experiencing rapid rent escalation. These areas are close to IT parks, upcoming infrastructure projects, and educational institutions, keeping demand consistently high.
Bengaluru’s rental market reflects both the city’s growth and its growing pains. While it remains a hub for technology and opportunity, the rising cost of living, combined with lagging infrastructure, presents challenges for tenants.
If you’re considering renting in Bengaluru, it’s essential to evaluate not just the property but also the broader neighbourhood ecosystem. Commute times, accessibility, amenities, and future development plans should all factor into your decision. For many, buying a home may offer greater long-term value, stability, and peace of mind in an otherwise unpredictable market.
Here are some of the best projects you can check out:
You can check the complete list of upcoming projects in Sarjapur Road.