Bengaluru's Rental Crisis: ₹50,000 for 500 sq ft 1BHK Sparks Outrage
Bengaluru's rental market is mirroring San Francisco's, with exorbitant rents for small apartments, sparking outrage among tenants. Demand far outstrips supply, leaving workers with limited options.
Rental MarketBengaluruSan FranciscoReal EstateTenantReal Estate NewsAug 22, 2025
Landlords argue that these prices reflect the ‘market rate,’ but tenants counter that it strains household budgets and fuels broader inflation. Many workers are left with the difficult choice of either paying exorbitant rents or enduring long commutes from the city’s outskirts.
Is Bengaluru headed the San Francisco way? One tenant recently took to Reddit to express frustration over the rental market. “Bengaluru seems to be headed the San Francisco way. There’s zero market regulation here, and there’s always some rich person who will rent that HSR 500 sq ft 1BHK for ₹50,000; he doesn’t care,” the post read. The Redditor, who is currently staying with relatives thanks to work-from-home flexibility, found the hunt for a reasonably priced flat exhausting.
Another Bengaluru resident recalled how rents have surged in just a few years. “Three years ago, I was paying ₹20,000 for a 2BHK. Today, the same flat costs ₹32,000, and it’s unbelievable,” they said. The Redditor added that tenants are left with a tough choice: move to the outskirts and spend hours in traffic, or stay closer to the office and “pay through your nose for rent, food, and groceries.” They even remarked that at this rate, “living in hotels might soon be the cheaper option.”
According to Zillow.com, an American tech real estate marketplace, apartment rents in San Francisco start at around $750 (₹65,000 per month) for a studio in Broadway and $771 (₹60,000 per month) for a one-bedroom in the eastern suburb of Hunters Point, and can go over $1,900 (₹1.6 lakh per month) for higher-end units. This comparison underscores the growing concern in Bengaluru.
Other prospective tenants pointed out how landlords’ attitudes shifted after the pandemic. “Before Covid, my owner only wanted us to keep the house nicely and never raised the rent. But once the IT companies reopened, her house manager insisted on matching the ‘market price.’ She is incredibly wealthy and doesn’t need the money, but suddenly wanted more,” a tenant shared.
A Reddit user recalled house-hunting in Mumbai 25 years ago. “Brokers and flat owners were some of the most unscrupulous and greedy people I ever met. I was so traumatised that I vowed never to be at their mercy again. Within a year, I saved for a down payment and haven’t looked back since.” Now based in Bengaluru, the Redditor said, “Brokers and owners are mostly a broken bunch of people.”
Several users posted that a few developers are selling cramped, poor-quality homes at exorbitant prices. One Redditor pointed to a recent example in north Bengaluru's Bagaluru, where a relative had purchased a premium apartment. The 3BHK, priced at ₹1.85 crore, offered little more than a single balcony, two “cage-sized toilets,” and interiors made of what they described as substandard materials. “For that kind of money, you’d expect quality and space. Instead, these are matchbox apartments,” the Redditor wrote, adding that anyone who has invested such large sums is unlikely to accept lower rental yields. In their view, this mindset contributes to inflated rents, since owners see even steep monthly charges as negligible compared to the crores they’ve already sunk into buying the property.
Another tenant agreed, saying that builders and developers have turned affordability into a joke. “They pass on the high costs to buyers, and the buyers, in turn, pass them on to tenants. It’s a cycle, and tenants are always the ones squeezed,” the post said.
Frequently Asked Questions
What is the current rental rate for a 500 sq ft 1BHK in Bengaluru?
Currently, the rental rate for a 500 sq ft 1BHK in Bengaluru can be as high as ₹50,000 per month.
How does Bengaluru's rental market compare to San Francisco's?
Bengaluru's rental market is beginning to mirror San Francisco's, with high demand and limited supply leading to exorbitant rents for small apartments.
What are the main concerns of tenants in Bengaluru?
Tenants in Bengaluru are concerned about the high rental costs, lack of market regulation, and the strain on household budgets. Many are forced to choose between paying high rents or enduring long commutes from the outskirts.
How have landlords' attitudes changed after the pandemic?
After the pandemic, many landlords in Bengaluru have become more focused on matching the 'market price,' leading to higher rents even for tenants who previously enjoyed stable and reasonable rates.
What are the challenges faced by developers and buyers in Bengaluru?
Developers and buyers in Bengaluru face challenges such as high costs for premium apartments, which they often pass on to tenants in the form of higher rents, contributing to the rental crisis.
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