Bengaluru’s residential rental market, once in overdrive, is showing a clear slowdown after two years of relentless increases. Premium 3BHK apartments that recently commanded ₹50,000–₹75,000 per month are now being leased for ₹35,000–₹55,000 — a drop of nearly 25–30% in some areas.
Neighbourhoods such as Rajajinagar, Basaveswara Nagar, and Malleshwaram are seeing sharper corrections due to limited inflow of new tenants, especially from the IT sector. Experts attribute this cooling to a surge of newly completed housing projects, slower hiring in tech and startups, and tenants becoming more cost-conscious amid rising living expenses.
Historically, rents spike early in the year as families relocate before the academic session. This year, festive season delays and hybrid work patterns have softened demand. In high-demand hubs like Indiranagar and HSR Layout, rents have stabilised, while oversupplied areas such as Electronic City are seeing aggressive negotiations — properties listed at ₹40,000 are closing at ₹30,000–₹35,000.
The slowdown contrasts sharply with 2022–2023, when corridors like Whitefield and Sarjapur saw hikes of up to 35%. Mid-segment homes are most affected: 2BHK units in BTM Layout and Sarjapur now fetch about ₹30,000, down from ₹35,000–₹40,000.
With ongoing layoffs at major tech firms, a shift toward automation, and a potential drop in disposable incomes, analysts warn of more stabilisation ahead. The city’s high cost of living — long propped up by its affluent tech workforce — could recalibrate if this trend continues.