Tiny Flats, Hefty Rents - Other Side of High Potential Bangalore Real Estate

Bangalore has lately seen a shortage of housing projects, which has led to the rise of alternative rental spaces and hefty rents. House owners are now converting their garages, storage sheds, and utility rooms into compact 1 BHK units that can be rented out for over ₹20,000 per month.

In the real estate market in the IT capitals of the city, annual hikes are up to 35% since 2023. The house owners drive this upswing and raise the demand as IT workers return to offices.

Affordable rental options are still open in the city outskirts, such as Bagalur, BTM Layout, and KR Puram, with 1 and 2 BHK flats rent for ₹12,000 to ₹30,000 per month. The IT boom and influx of IT pros have driven up demand for housing.

Large IT firms like Infosys, Wipro, TCS, and Accenture are asking employees to return to offices, increasing demand for rentals near IT hubs. Many owners who reduced rents during the pandemic are now charging higher rates. Many living spaces here are fully furnished and target IT pros, justifying higher rents.

Co-living startups like Zolo, Stanza Living, and Co Live are offering private studio rooms for ₹15,000 to ₹30,000. There are owners who still demand ₹1-2 lakh as initial deposits. New rental platforms like NoBroker and NestAway are offering zero-deposit rentals to attract tenants. New rental supply in central and well-connected areas is limited, hence has pushed rents higher.

Tiny Flats in Prime Locations

Koramangala, Indiranagar, HSR Layout, Whitefield, and JP Nagar are listed above ₹20,000 per month for 1 BHK or studio flats.
New high-rise and premium gated townships in Bellandur, Marathahalli, and E-City also command similar rents.
In areas like MG Road, Brigade Road, Ulsoor, and Richmond Town, even paying guest (PG) stays in prime areas cost over ₹20,000.
Studio flats (300-500 sq. ft.) in popular spots are rented for ₹20,000-₹30,000.
In high-end areas, a small 1 BHK (600-700 sq. ft.) cost ₹35,000+ per month.

Rental Hotspots

○ Central Business District

- Areas: MG Road, Brigade Road, Richmond Town, Ulsoor, Lavelle Road
- Average Rent: ₹25,000–₹40,000 for a 1BHK (~500-700 sq. ft.)
- Why so Expensive?

Average Rent: ₹22,000–₹35,000 for a 1BHK (~500-700 sq. ft.)
Studio flats: (~300-400 sq. ft.): ₹18,000-₹28,000
Why So Expensive?

The IT pros and startup owners prefer these locations.
It has easy access to top co-working spaces, cafes, and pubs.
They have high demand but have fewer new housing projects.

Whitefield & Marathahalli
- Average Rent: ₹20,000–₹32,000 for a 1BHK (~600-800 sq. ft.)
- Why So Expensive?

HSR Layout, Bellandur, Sarjapur Road
Average Rent: ₹20,000–₹30,000 for a 1BHK (~550-750 sq. ft.)
Why So Expensive?

These career hubs are very popular among mid-senior level IT people.
Many IT parks and retail spaces surround these areas.
Gated Townships with modern features push up prices.

Bangalore - An Investment Prospect Strong Rental Yields (3-5%)

Compared to other Indian metros, Silicon City offers fairly good rental returns. Investing in 1BHKs and studio flats can yield steady rental income due to high demand.

Best Areas to Invest

Sarjapur Road, HSR Layout, Whitefield, and North Bangalore (Hebbal, Yelahanka) are seeing rapid real estate growth. Metro expansions and the rise of IT parks are keeping the rates higher.

Resale Market & Future Growth

Real estate Projects in Koramangala, Indiranagar, and CBD areas already have high prices. Emerging locations like Devanahalli (near the airport), Bagalur, and E-City Phase 2 are showing a strong future and will have potential appreciation.

Bangalore has friendly rental laws, and the Model Tenancy Act, once proposed, may improve clarity in rent agreements. It is good for investors who are looking for steady rental income.

Prestige Group Prelaunch Project is Prestige Southern Star