After calling Bengaluru home for more than a decade, Alisha, 32, who works in the oil and gas sector, highlights the challenges of the city’s rental system. With a modest salary increase of 5–10 percent compared to an amazing jump of 50-60 percent in the rent, Alisha saw its monthly rent ascend from ₹ 42,000 to ₹ 56,000, and then to ₹ 75,000 year after year. “The Bangalore rental agreement is biased towards the owners. There is nothing in it to protect the tenants,” she says. For her, the only escape from the cost trap is to leave.
While rentals in the Silicon Valley of India have increased more than 25 percent since 2020, wages have barely maintained rhythm, which raises Conerns growing on Bangalore’s affordability and long -term sustainability as a technological capital. According to Teamlease data, the technological sector has witnessed annual salary increases of only 8-12 percent, with a little better increases in the range of 12-15 percent.
Despite the growing costs, Bangalore continues to attract professionals attracted by his robust technological ecosystem. However, the combination of high income and recent increases in public services positions is beginning to affect both financial stability and quality of life.
Salary increases do not cover rental walks
Nethra (changed name), analyst at a leading consulting firm, shared how most of his salary now goes to Rends. “While obtained an increase of 13 percent, the rent has increased almost 10 percent. There is hardly any savings space,” he said.
Nethra belongs to a cohort that has recovered a walk. In all sectors, however, the situation is unequal. While technology, new companies and services have seen a healthier growth in compensation, traditional industries are lagging a serious division between conventional and conventional sectors.
The FMCG sector has seen annual fashion or 5 to 8 percent increases, medical care, despite a peak driven by COVID, has been established in a growth of 6 to 9 percent by 2025, while construction and real estate have grown constantly, but 5-7-7-7-7-7-7-7 –7 increases in proportion. Logistics has achieved growth from 6 to 8 percent, driven by electronic commerce but cannot match the pace of technology. Even within technology, there is a marked division. AI/ML professionals are seeing walks from 10 to 15 percent, but traditional TI roles barely move, “according to Neeti Sharma, CEO, digital teamlease.
Firing rentals
The rental panorama in Bangalore has seen a dramatic change after 2020, especially in the main micromarkets. According to the co-founder and CEO of Noboker, Amit Agarwal, the occupation in co-life spaces has shot 55 to 60 percent to more than 85 percent recently, which reflects the stress of affordability. Areas such as Whitefield observed a 20 percent jump compared to 2020, while Indirangaar increased by 25 percent from 2020. Marathalli witnessed an increase of 21 percent, and in Jayanagar, rentals increased by 15 percent.
“In Whitefield, a 1bhk that cost ₹ 15,000 in 2020, now above or ₹ 22,000- ₹ 24,000,” said Dharamveer Singh Chouhan, co-founder and CEO or Zoost.
Anshuman magazine, the president and the CEO-India, the Southeast of Asia, the Middle East and Africa, CBRE, added that the Micro-Mercados Este, Norte, Sur and Southeast have become residential hot points, which show a constant expensive potential.
Change to a shared life
The increase in rentals has caused a clear change in behavior among professionals who work younger. Co-life and shared adaptations are gaining popularity, especially among the age group from 21 to 29 years. These arrangements sacrifice profitable options, Plug-And-Play and foster a sense of community management both financial and social needs.
“Younger professionals are choosing to rent beds or rooms instead of complete apartments. Flexibility and shared cost make life very attentive,” Chouhan said.
(With internal bloc tickets Nethra Sailes)
Posted on April 18, 2025