Bengaluru’s rental market, which had been riding a wave of steep prices over the last couple of years, is now witnessing a sharp correction. Just months ago, landlords were confidently quoting ₹50,000 to ₹75,000 per month for spacious 3BHK apartments in prime areas, often finding tenants willing to pay without much negotiation. However, the tide seems to have turned, with the same properties now being offered at far more modest rates ranging between ₹35,000 and ₹55,000. This marks a notable decline of around 25–30%, catching both homeowners and tenants by surprise.
Several factors are contributing to this sudden dip. A slowdown in tech hiring, a rise in remote and hybrid work models, and an oversupply of premium housing in certain localities have all combined to cool demand. Many tenants who had earlier stretched their budgets to secure homes in sought-after areas are now renegotiating rents or moving to better deals elsewhere. Landlords, faced with the risk of long vacancy periods, are becoming more flexible — something that was unthinkable during the rental boom of 2022–2023, when competition for housing was fierce.
For tenants, this market shift is a rare opportunity to secure high-quality housing at far more reasonable rates. Families and working professionals are taking advantage of the dip to move into larger or better-located apartments without significantly increasing their budgets. Meanwhile, property owners are realizing that holding out for inflated rents may no longer be practical, and maintaining steady occupancy is more valuable than waiting for the market to rebound. Whether this fall is a temporary correction or the start of a longer-term trend will depend heavily on the city’s job market and the pace of new housing supply over the next year.
Several factors are contributing to this sudden dip. A slowdown in tech hiring, a rise in remote and hybrid work models, and an oversupply of premium housing in certain localities have all combined to cool demand. Many tenants who had earlier stretched their budgets to secure homes in sought-after areas are now renegotiating rents or moving to better deals elsewhere. Landlords, faced with the risk of long vacancy periods, are becoming more flexible — something that was unthinkable during the rental boom of 2022–2023, when competition for housing was fierce.
For tenants, this market shift is a rare opportunity to secure high-quality housing at far more reasonable rates. Families and working professionals are taking advantage of the dip to move into larger or better-located apartments without significantly increasing their budgets. Meanwhile, property owners are realizing that holding out for inflated rents may no longer be practical, and maintaining steady occupancy is more valuable than waiting for the market to rebound. Whether this fall is a temporary correction or the start of a longer-term trend will depend heavily on the city’s job market and the pace of new housing supply over the next year.
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