Bengaluru's Real Estate Market Struggles: Prices Soar, Buyers Weigh Renting vs. Owning
Once a haven for tech professionals, Bengaluru’s housing market is now facing significant affordability issues as property prices soar, leaving many prospective buyers to reconsider their options.
BengaluruReal EstateProperty PricesRentingAffordabilityReal Estate NewsOct 18, 2025
A Reddit user, who has lived in the city for six years, summed up the sentiment: “Prices seem insane everywhere. Rent has skyrocketed since COVID-19. I get that Bangalore is growing fast, but is this appreciation sustainable, or are we just riding a bubble?”
Experts note that Bengaluru remains a prime destination for careers and investment, but high prices have made home ownership challenging. “For investment purposes, the market is tough now. But for opportunity, it’s still probably the best in the country,” one commenter noted, adding that other cities like Mysore may offer better entry points for property investment.
The city’s most expensive units, including 3BHKs priced around ₹3 crore, are increasingly accessible only to high earners or households with generational wealth. “Assuming a 20% down payment, a ₹3 crore flat comes with an EMI of about ₹2 lakh. Dual-income tech households earning 30L+ each can manage it, but beyond that, it gets tricky if prices rise further or job security falls,” a Redditor explained.
Another perspective highlights the cyclical nature of real estate: “Real estate isn’t about how many can afford it, it’s about how much people are willing to spend to own a space. If middle-class buyers can’t buy, they rent, which pushes demand and prices further,” one commenter wrote.
With prices continuing to rise, some buyers are opting to rent instead. A Redditor renting in Bellandur shared, “I’m happy with no EMIs, flexibility to move, and investing elsewhere. A friend bought in Whitefield last year and regrets it, builder delays, traffic, and new projects nearby selling cheaper.”
Comparisons with other cities put Bengaluru’s prices in context. “I own a 2BHK in Navi Mumbai that crossed ₹1.6 crore. Compared to that, Bangalore is still cheaper and offers many job opportunities,” another user said, noting that inflation across real estate is a nationwide trend since 2020 due to factors like post-COVID quantitative easing.
Despite concerns over affordability and rising costs, many buyers continue to see Bengaluru as a long-term destination, with its tech-driven economy and improving infrastructure providing ongoing demand. Market watchers suggest that while rapid price jumps may slow or flatten, a sharp crash is unlikely, making renting a viable short-term strategy for many.
Frequently Asked Questions
What is causing the rise in property prices in Bengaluru?
The rise in property prices in Bengaluru is primarily driven by the city's tech boom, which has increased demand for housing. Post-pandemic economic factors and inflation have also contributed to the surge.
Are property prices in Bengaluru sustainable?
While property prices in Bengaluru have been rising rapidly, experts suggest that the market may slow down or flatten. However, a sharp crash is unlikely due to the city's strong tech-driven economy and infrastructure growth.
What are the benefits of renting in Bengaluru?
Renting in Bengaluru offers flexibility, no EMIs, and the ability to invest elsewhere. It is a viable short-term strategy for those who find property prices unaffordable or are unsure about long-term commitment.
How does Bengaluru's real estate market compare to other cities in India?
Bengaluru's real estate market is still considered relatively affordable compared to cities like Navi Mumbai. However, the rapid price increases and high rents have made it challenging for middle-class buyers.
What are the key factors driving the rental market in Bengaluru?
The rental market in Bengaluru is driven by the tech industry, which attracts a large number of professionals. High property prices have also pushed many middle-class buyers to rent, increasing demand and prices in the rental sector.
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