While rentals in the Silicon Valley in India have increased more than 25 percent since 2020, salaries have barely maintained rhythm, which raises Conerns growing on Bengaluru’s affordability | Photo credit: Sudhakara Jain
Alisha, thirty -two, who works in the oil and gas sector and arrived in Bengaluru a decade ago, is recovering from rental clashes. While your salary has seen scarce annual walks or 5-10 percent, it has a leg of 50-60 percent at home over the years. The rent of the house has increased from ₹ 42000 to ₹ 56,000, and then to ₹ 75,000 in recent years, which forced it to evaluate whether to remain in the city. The only escape from the cost trap is to leave, she says.
While rentals in the Silicon Valley of India have increased more than 25 percent since 2020, wages have barely maintained rhythm, which raises Conerns growing on Bangalore’s affordability and long -term sustainability as a technological capital. According to Teamlease data, the technological sector has witnessed annual salary increases of only 8-12 percent, with a little better increases in the range of 12-15 percent.
Bad compensation
Neha (changed name), analyst at a leading consulting firm, complains that most of your salary now rents. “While obtained an increase of 13 percent, the rent has increased by almost 10 percent. There is hardly any space to save,” she says.
She is still lucky to get a salary walk. In many sectors, professionals complain about stagnant wages. While technology, new companies and services have seen a healthier compensation growth, traditional industries are lagging behind, highlighting a driving division between conventional and conventional sectors.
The FMCG sector has seen modest annual increases or 5 to 8 percent, medical care, despite a Covid peak, has been established in a 6-9 percent growth, while construction and real estate are delivering only 5-7 percent of the increases. Logistics has managed a salary growth of 6-8 percent, driven by electronic commerce. Within technology, there is a division gap. AI/ML professionals are seeing walks from 10 to 15 percent, but traditional TI roles barely move, says Neeti Sharma, CEO, digital teamlease.
Firing rentals
The rental panorama in Bangalore has seen a dramatic change after 2020, especially in the main micromarkets. According to the co-founder and CEO of Noboker, Amit Agarwal, the occupation in co-life spaces has shot 55 to 60 percent to more than 85 percent recently, which reflects the stress of affordability. Areas such as Whitefield observed a 20 percent jump in 2025 Compared to 2024While Indirangagar increased by 25 percent. Marrathahalli witnessed an increase of 21 percent, and in Jayanagar, rentals rose by 15 percent.
“In Whitefield, a 1 bhk that costs ₹ 15,000 in 2020, now more than ₹ 22,000- ₹ 24,000,” said Dharamveer Singh Chouhan, co-founder and CEO or Zoost.
Anshuman magazine, the president and the CEO-India, the Southeast of Asia, the Middle East and Africa, CBRE, added that the micro-markets of this, north, southern and southeast have become residential critical points, which show a constant pleasure and a long-term period.
Shared life
The increase in rentals has caused a clear change in behavior among professionals who work younger. Co-life and shared adaptations are gaining popularity, especially among the age group from 21 to 29 years. These arrangements sacrifice profitable options, plug-and-play, and encourage a sense of direction of the community both financial and social needs.
“Younger professionals are choosing to rent beds or rooms instead of complete apartments. Flexibility and shared cost make life very attentive,” Chouhan said.
With internal bl Nethra Sailesh entries
Posted on April 18, 2025