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Bengaluru real estate: Tiny flats and partitioned 1BHKs renting for over ₹20,000 per month in the IT capital

Bengaluru Rentals: With limited space and rising demand, landlords are capitalizing on every inch of space, converting garages and storage sheds into 1RK units

Published on: Feb 12, 2025, 12:15:46 IST
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When Swagata Bhar began her house-hunting journey in Bengaluru, she was taken aback by the small sizes of most 1BHKs, often less than 350 sq feet. "Some barely had enough space for a sofa in the living room, leaving little room to move around. One even lacked a bathroom—the owner just pointed to one on the terrace," Bhar recalled

Bengaluru Rentals: With limited space and rising demand, landlords are capitalizing on every inch of space, converting garages and storage sheds into 1RK units (Representational Image) (Pixabay)
Bengaluru Rentals: With limited space and rising demand, landlords are capitalizing on every inch of space, converting garages and storage sheds into 1RK units (Representational Image) (Pixabay)

Since 2023, high-demand areas in Bengaluru, including Koramangala, Sarjapur Road, Whitefield, and Bellandur, have seen annual rent hikes of up to 35%. This surge has been driven by landlords trying to recover losses incurred during the pandemic and rising demand as employees returned to the office for work.

Today, Bengaluru is facing a housing crisis, with skyrocketing apartment rents putting tenants under pressure. This has led to the rise of unconventional rental spaces as property owners capitalize on the demand-supply imbalance to maximize rental income.

Also Read: Claustrophobics might not want to see. Viral video of Bengaluru's 25,000 rent flat shocks internet

Shortage of housing inventory leading to a rise in unconventional rental spaces

A Bengaluru man's viral Instagram video showcasing his unbelievably tiny flat shocked the social media recently. The viral video features a man showcasing a cramped 1BR (balcony room) flat, which costs an eye-popping 25,000 per month.

With demand for rental apartments surging near Bengaluru’s city centre, property owners are turning to unconventional spaces to capitalize on the supply crunch. Local brokers report that some landlords have converted car garages into compact 1 BHK units, renting them out for over 20,000 per month.

Recently, a landlord in prime Koramangala leased out a garage-turned-1BHK for 25,000 per month, with a three-month security deposit. In another case, an Indiranagar owner transformed a utility room beneath a staircase into a 1RK, aiming to rent it for over 15,000. However, the unit lacks both windows and a bathroom, said Sunil Singh, director of Realty Corps.

A shortage of available inventory near the city centre has pushed rental prices in prime areas up by 10-15% over the past year. In localities like Koramangala, Indiranagar, HSR Layout, and Hebbal, 2BHK apartments in gated communities now command rents between 40,000 and 50,000 per month, depending on amenities.

A rental firm in Bengaluru that did not wish to be named has listed a 1BHK for 17,000 monthly close to Bommanahalli. However, it's not a typical 1BHK. "It was originally a 1RK, but we added a wooden partition to convert it into a 350 sq ft 1BHK. We've already received many inquiries," said a company executive.

"With limited space for new apartment developments and growing demand, landlords are monetizing every available space, even repurposing storage sheds on terraces," Singh added.

Many property owners have already converted terrace storage rooms into 1BHK or 1RK (one-room kitchen) units, renting them out for 15,000 or more per month. These spaces, typically 200-400 sq ft, come with a three-month security deposit.

"Some units offer added amenities like lifts and air conditioning, pushing rental prices beyond 25,000 per month. These rentals are common in areas like Indiranagar, BTM Layout, and the outskirts of Koramangala," Singh noted.

Also Read: Bengaluru real estate market: Areas where you can rent an apartment for less than 30,000 per month

Are affordable rental options still available in Bengaluru?

Despite soaring rents in Bengaluru’s prime locations, more affordable alternatives can still be found on the city’s outskirts.

Local brokers note that areas like Bagalur, near Whitefield, offer 2BHK units for around 27,000 per month. However, these properties are situated further from the prime Whitefield area.

In areas like BTM Layout, located on the outskirts of Koramangala and Whitefield, several 1BHK apartments are available for 15,000 to 20,000 per month, with some options even as low as 12,000.

For those seeking budget-friendly 2BHK rentals, Krishnarajapuram (KR Puram), one of Bengaluru’s key eastern suburbs, offers options for under 30,000 per month. The recently launched KR Puram–Whitefield metro line has further eased commuting challenges in the eastern IT corridor.

Additionally, local brokers highlight areas like Phase 6 and Puttenahalli, located on the outskirts of JP Nagar in South Bengaluru, where apartments are available for under 30,000 per month.

  • Souptik Datta
    ABOUT THE AUTHOR
    Souptik Datta

    Souptik Datta is a deputy chief content producer at Hindustan Times Digital, where he reports on southern India with a focus on real estate, urban infrastructure and environmental urban issues. His coverage tracks the intersection of policy, capital flows, regulation and sustainability, examining how these forces shape housing markets, commercial real estate and large-scale infrastructure development across rapidly transforming cities. He also closely tracks civic issues affecting urban residents, including property taxation, planning approvals, public transport expansion, water stress, waste management and the governance challenges that influence everyday life in India’s metros. Souptik’s reporting is driven by a strong interest in accountability, consumer rights and the lived realities of homebuyers and investors navigating volatile pricing cycles, regulatory changes and project delivery risks. He frequently analyses project launches, land monetisation strategies, planning frameworks, RERA-related developments and the broader implications of infrastructure investments on emerging growth corridors. His work blends on-ground reporting with data-backed analysis and long-form explainers aimed at demystifying complex real estate and infrastructure developments for readers. He is an alumnus of the Indian Institute of Journalism and New Media. Before joining Hindustan Times Digital, Souptik was associated with Moneycontrol at Network 18, where he covered real estate, infrastructure and allied sectors, producing market insights, policy-led stories and in-depth features. Outside the newsroom, Souptik is an avid solo traveller and documentary enthusiast, exploring diverse regions and visually documenting unique narratives through film and photography. In his early career, Souptik also freelanced as a documentary photographer, independently working on visual storytelling projects that captured grassroots narratives, urban change and everyday life. He can be reached at souptik.datta@htdigital.in.Read More

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