A recent LinkedIn discussion has sparked widespread concern as rental prices in Bengaluru soar to unprecedented levels. The revelation that a 2BHK in Koramangala now costs ₹70,000 per month—only ₹10,000 less than similar accommodations in parts of New York—has left professionals questioning the city’s affordability.

Uncontrolled demand, restricted supply

Bengaluru’s thriving tech industry attracts a constant influx of job seekers, but the availability of rental homes has not expanded accordingly. Experts point to a sluggish pace of new housing projects as a key reason behind skyrocketing rents. Premium localities like Koramangala are witnessing massive spikes, while northern zones such as Hebbal, Hennur, and Thanisandra have seen lease costs rise by 20-25%, driven by their connectivity to key infrastructure and the airport.

Tenants struggle in a seller’s market

With limited alternatives, property owners dictate terms, pushing renters to pay exorbitant sums. Many complain that despite paying near-global rates, daily life remains a challenge due to traffic congestion, crumbling roads, and inadequate public transportation. A resident summed up the frustration: “We’re paying New York rates in a city where a 10-km commute takes an hour.”

Has Bengaluru lost its affordability?

Once known as an economical hub for professionals, Bengaluru is now one of India’s priciest cities. With rental costs surging relentlessly, residents are left reassessing their housing choices, raising serious concerns about sustainability.