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Bengaluru’s rental squeeze: Where can you find apartment rentals under ₹20000 in the tech capital?

Bengaluru real estate: Rents near IT hubs like HSR and Bellandur have surged, pushing newcomers to seek smaller or suburban homes under 20,000 a month

Updated on: Oct 18, 2025, 10:58:32 IST
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As rents surge across India’s tech capital, even a modest 1BHK near major employment hubs like HSR Layout, Koramangala, or Bellandur is becoming unaffordable for most newcomers. A Reddit post from a user moving to Bengaluru for work, seeking a 1BHK or PG near HSR Layout under 15,000, sparked a flood of responses reflecting the struggles of thousands in similar situations. What used to be a reasonable budget for a starter apartment barely covers rent for a small room today.

Bengaluru real estate: Skyrocketing 2BHK and 3BHK prices push buyers toward renting, while long-term demand remains driven by tech jobs and infrastructure growth (Representational Photo) (Unsplash)
Bengaluru real estate: Skyrocketing 2BHK and 3BHK prices push buyers toward renting, while long-term demand remains driven by tech jobs and infrastructure growth (Representational Photo) (Unsplash)

“I’m moving to Bengaluru soon for work, my office is in HSR Layout (18th Cross, Sector 4). I will be working full-time from the office, so I am trying to find a good place to stay nearby, ideally within a short commute,” the Redditor wrote.

Also Read: Bengaluru’s 2.5-crore dilemma: Even techies feel priced out of the city’s housing market

Matchbox apartments, premium rents

In prime localities such as Indiranagar and Defence Colony, 1BHK apartments measuring just 400–600 sq. ft. are now being listed for 45,000– 60,000 per month. Even in HSR Layout and Bellandur, tenants say they are forced to pay hefty rents for smaller, poorly maintained homes. “These are matchbox apartments with very high rents,” one Redditor lamented, adding that many lack basic amenities like parking or a reliable water supply.

Real estate experts confirm this trend. “Almost ten years ago, 1BHKs were uncommon and much larger—often 700–750 sq. ft.,” said Sunil Singh, director at Realty Corp. “Now, most new 1BHKs built purely for rentals are just 450–550 sq. ft., as small developers try to fit more units per plot.”

Also Read: Dhanters 2025: Plan to buy a house this festive season in an old building or a new one? Here's what makes more sense

Where can you still find affordable options?

Affordable rentals under 20,000 are now mostly found beyond the city’s core. Singh notes that areas like Kasturi Nagar, OMBR Layout, Marathahalli, and parts of Whitefield still offer limited 1BHK options in the 20,000– 25,000 range, while smaller studios of 300–400 sq. ft. can rent for 15,000– 20,000 in certain neighbourhoods.

Kiran Kumar, vice president of Hanu Reddy Realty, said that renters with tighter budgets, those hoping to find 1BHK or 2BHK units under 20,000, will have to look beyond the city’s central and southern tech corridors. “It’s still possible to find affordable homes if you’re willing to move slightly outward,” he explained.

According to him, areas along the Outer Ring Road stretch toward Kengeri on the city’s western side still offer relatively lower rents. In North Bengaluru, localities such as Kempepura, near Hebbal, and the adjoining Jakkur belt offer 2BHK options in the 15,000– 20,000 range, depending on the size and amenities. Meanwhile, towards the east, Budigere Cross, situated near Whitefield, is emerging as another pocket of affordability.

“For those looking for 1BHK units, standalone apartments in these areas can still be found for 12,000– 15,000 a month,” Kumar said. However, he cautioned that these typically come with additional maintenance costs of around 3,000 per month and may not offer the same level of amenities or security as gated communities.

He said that while these neighbourhoods may not have the lifestyle infrastructure of HSR Layout or Indiranagar, they are gradually improving, with better road connectivity, schools, and retail options attracting a steady inflow of working professionals priced out of core IT zones.

  • 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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