Market Reality Check Hits Bengaluru Rentals Hard
Bengaluru's residential rental market is seeing its most significant correction in recent years. Landlords who once confidently demanded premium rents are now negotiating substantial cuts to attract tenants.
The dramatic shift affects 3BHK units most severely. Properties that commanded ₹50,000-₹75,000 monthly are now offered at ₹35,000-₹55,000, marking drops of nearly 25-30%. This marks a stark reversal from the city's relentless rental growth pattern.
Affected Areas and Market Dynamics
Traditional residential neighborhoods bear the brunt of this correction. Rajajinagar, Basaveswara Nagar, and Malleshwaram in the city's western and north-western corridors show the steepest declines. These conventional areas struggle with reduced demand as fewer IT professionals choose them over modern tech corridors.
However, the market tells different stories across locations. North Bangalore continues showing resilience. 2BHK rents range from ₹25,000-₹38,000, with rental demand increasing 26% year-over-year. Infrastructure developments like Metro Phase 2B and airport expressway upgrades sustain demand in these pockets.
Economic Headwinds Drive Change
Multiple factors converge to create this rental correction. Economic uncertainty impacts tenant budgets while hybrid work reduces office proximity requirements. Rising supply from new developments adds pressure on existing landlords. The IT sector's cautious hiring stance further dampens demand in tech-heavy areas.
According to the market survey, rental growth peaked at 15.7% in early 2025 but has now decreased to 7-9% citywide. This normalization suggests the market is finding its sustainable equilibrium after years of speculative pricing.
What This Means for Stakeholders
Tenants gain negotiating power they haven't enjoyed in years. Smart renters can secure quality apartments at significantly reduced rates. Investors must recalibrate expectations, though quality locations with infrastructure connectivity remain attractive for long-term returns.
The correction doesn't signal market collapse but rather a healthy adjustment. Bengaluru's fundamentals - its role as India's tech capital - remain intact, promising eventual recovery once economic conditions stabilize.