Bengaluru real estate: Rising prices, shrinking spaces, buyers feel the pinch

Bengaluru real estate: 2BHK hunt gets tougher as prices surge and rents spike, squeezing affordability despite strong tech demand

Finding a 2BHK apartment in Bengaluru has become increasingly difficult for homebuyers, as both prices and rents surge. Flats that were priced at around ₹1.4 crore just three years ago are now being listed for nearly ₹2 crore, even in areas plagued by poor infrastructure, such as bad roads and water shortages, according to Reddit users.

Finding a 2BHK in Bengaluru is getting harder as prices and rents surge, with homes rising from ₹1.4 crore to nearly ₹2 crore in three years despite poor infrastructure. (Picture for representational purposes) (ChatGPT )

While buying a home may seem costlier at first glance, many buyers say they are also getting less space for the same price, or even paying a higher price.

“In the last 3 years, I have observed the cost of the same flat go from 1.4 crores to 2 crores. The flat isn't perfect, btw, it has a huge drain next to it and lots of other issues that I can list. The only big plus is that it is super close to ORR and hence all IT companies,” one of the Redditors said.

Buyers looking near the Outer Ring Road (ORR) in high-demand areas such as Harlur, Bellandur, Bhoganhalli, and Kadubesanahalli are particularly affected. “We were ok with renting too, but rents have skyrocketed. Today, people are paying ₹70,000 or more for the same flat we were considering buying,” a Reddit user wrote.

Some premium 2BHKs in gated societies are being sold for ₹2.5 crore, and much of the inventory has already been sold out, despite the lack of basic amenities in these complexes, they said.

Buyer demographics

Redditors noted that tech professionals, particularly those in their 30s working along ORR, partly drive the price surge. Many earn ₹60-70 lakh annually in cash, plus stock options worth nearly half of that.

Their spouses often earn ₹30-50 lakh per year, allowing these households to quickly amass ₹70-80 lakh in two years. With few dependents and minimal financial burden from parents, this group has the purchasing power to absorb rapid price increases, they said.

“The people who are getting a fair inflation-adjusted salary are the ones able to buy in the current market,” one Reddit user noted, highlighting the widening gap between tech professionals and salaried individuals whose incomes have not kept pace with inflation.

While rental listings are available for ₹70,000 per month, but most tenants are unwilling to pay that much. “Currently, 2BHKs in a good gated society go for ₹50,000-55,000, and that’s what most people end up paying,” another user said.

Bengaluru’s homes aren’t just getting costlier, they’re getting smaller

Buying a home in Bengaluru today may feel more expensive at first glance, but buyers also say they are getting less space for the same (or higher) price.

Data from NoBroker shows that the average flat size dropped about 8% in 2025, falling from 1,094 sq ft to just over 1,000 sq ft. Among major metros, this is one of the sharpest contractions.

According to Saurabh Garg, Chief Business Officer at NoBroker, the compression is most visible in mainstream housing categories. “Carpet areas in 2BHK units have reduced by 9% and in 3BHKs by about 5% in Bengaluru,” he said, noting that builders are restructuring configurations to balance profitability with consumer expectations. This densified approach, he said, is becoming a preferred strategy in a market where budget constraints are increasingly shaping buying decisions.

Real estate experts say that some grade-A developers continue to offer larger-format homes, typically priced from ₹2.5–3 crore, but this is not reflective of the broader market. “Across most mid-range projects, we are seeing a noticeable reduction in sizes as developers adjust to rising input costs and changing demand patterns,” Garg said.

(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them.)