Bengaluru Rental Boom Tiny Flats Commanding Premium Prices
Bengaluru’s rental market has reached unprecedented levels, with tenants forced to pay exorbitant prices for compact and unconventional accommodations. In high-demand areas such as Koramangala, Whitefield, Sarjapur Road, and Bellandur, rental prices have surged by as much as 35% over the past year. The demand-supply imbalance has resulted in property owners repurposing garages, terrace storage rooms, and even stairwell spaces into livable units. A striking example is a garage in Koramangala converted into a 1BHK and rented out for ₹25,000 per month. In another case, a landlord in Indiranagar transformed a 200 sq ft utility room beneath a staircase into a rental unit—albeit without windows or a bathroom—priced at ₹15,000.
The demand for affordable rental options has also driven innovation in space utilisation. Some 1RK (one-room kitchen) units have been partitioned to resemble 1BHKs, fetching higher rental values. A rental firm in Bommanahalli recently listed a 1BHK for ₹17,000, which was originally a studio apartment with an added partition. In premium gated communities across Indiranagar, HSR Layout, and Hebbal, 2BHK apartments are now commanding rents between ₹40,000 and ₹50,000 per month. Experts attribute this steep increase to post-pandemic adjustments, with landlords aiming to recover financial losses incurred during lockdowns and capitalise on the influx of returning office-goers.
Civic Infrastructure Struggling to Keep Pace with Demand
The city’s rapid expansion has led to severe pressure on housing infrastructure, with limited new developments near the central business districts. While tech hubs continue to attract a steady inflow of professionals, the housing supply has struggled to keep pace. As a result, rental inflation has disproportionately affected middle-class tenants, forcing many to either relocate to the outskirts or settle for suboptimal accommodations. Brokers report that in some cases, terrace sheds and repurposed servant quarters are being rented out for upwards of ₹15,000 per month.
This rental crisis highlights a broader urban planning issue—Bengaluru’s infrastructure development has lagged behind its population growth. Traffic congestion, inadequate public transport connectivity, and limited space for new residential projects have exacerbated the situation. Commuting from more affordable areas often adds hours to daily travel, further straining the city’s workforce. The ongoing metro expansions, including the recently operational KR Puram–Whitefield line, provide some relief, but experts argue that long-term urban planning reforms are essential to sustain Bengaluru’s growth.
Sustainability Concerns: Overcrowding and Strain on Resources
The trend of converting unconventional spaces into rental units raises serious sustainability concerns. Bengaluru already faces significant challenges related to water scarcity, waste management, and energy consumption. The rapid densification of residential areas without corresponding improvements in civic infrastructure places immense pressure on local resources. Experts warn that unchecked development could lead to further depletion of groundwater levels, higher waste generation, and increased energy consumption.
Additionally, the surge in makeshift housing solutions—such as partitioned flats and converted garages—poses safety risks. Many of these spaces lack proper ventilation, sanitation facilities, and fire safety measures. Authorities need to implement stricter rental regulations to ensure that landlords adhere to minimum living standards. Sustainable urban housing solutions, such as promoting co-living spaces, incentivising vertical developments, and enforcing green building norms, could help mitigate these challenges in the long run.
Affordable Housing: Are There Any Viable Options Left?
Despite the rising rental prices in Bengaluru’s prime locations, some pockets still offer relatively affordable alternatives. In areas like Bagalur, near Whitefield, 2BHK units are available for around ₹27,000 per month, though these require longer commutes. Similarly, BTM Layout, which borders Koramangala and Whitefield, offers 1BHK rentals ranging from ₹12,000 to ₹20,000 per month.
For tenants seeking budget-friendly options, KR Puram remains a preferred choice, with 2BHK flats available for under ₹30,000 per month. The improved metro connectivity in this region has made commuting more feasible. Additionally, areas like Puttenahalli and Phase 6, located on the outskirts of JP Nagar, continue to provide relatively affordable rental housing, though these too are witnessing gradual price escalations. While Bengaluru’s rental market remains challenging, tenants willing to explore peripheral areas still have options to balance affordability and commute times.
