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Soaring rental prices in Bengaluru have sparked a debate on Reddit, with users comparing the city’s rising housing costs to those in the UAE. Many tenants have expressed concerns over the sharp rent increase across Bengaluru’s prime areas, particularly in IT hubs like Whitefield, Koramangala, and Indiranagar.
Others argue that despite earning salaries on par with global technology hubs, the cost of living in Bengaluru is rising faster than income growth, making housing increasingly unaffordable
“I have been curious about the Bengaluru vs UAE debate. The cost of living is skyrocketing every single day. Education, travel, housing, groceries and above all taxes,” said one of the Redditors.
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A supply-demand mismatch initially drove up rents in Bengaluru, with landlords imposing unconventional requirements such as LinkedIn profiles and salary slips. As a result, rental prices have surged by 30-40% in areas like Koramangala, Indiranagar, HSR Layout, and parts of North Bengaluru.
“Rent is higher in Dubai right now! But Sharjah would be a good choice except for the traffic congestion. You can get a decent apartment for ₹70,000 in Sharjah. If a company offers you ₹50 lakh per year, I would definitely recommend moving there,” said a Redditor who has lived in Dubai.
Higher rents and expenses put Bengaluru tenants in a spot
For young professionals and middle-income families, higher rents mean reduced disposable income, making it harder to afford essential expenses like groceries, transportation, healthcare, and education. Many users said they struggle to balance the cost of living in Bengaluru, while some are even reconsidering staying in the city due to the rising financial burden.
For instance, Akshay Patra, a marketing professional living in Koramangala, spends a total of ₹45,000 per month, including miscellaneous expenses and ₹25,000 in rent for a 1BHK.
Upasana Banerjee, a young professional in Bengaluru, spends ₹35,000-38,000 per month. “I currently live in a well-furnished house in Bellandur, North Bengaluru, where my flat mate and I share a rent of ₹30,000. Over the past 2-2.5 years, our rent has increased by ₹5,000, yet many others in the same area now pay significantly higher rents.”
Banerjee noted that to maintain a decent middle-class lifestyle in Bengaluru, one needs to earn at least ₹55,000-60,000 per month to cover rent and other living expenses comfortably.
However, in areas like Bellandur, Hebbal, and Yelahanka in North Bengaluru, a decent 2BHK now starts at ₹30,000 and can go up to ₹50,000. In Whitefield, 2BHK rentals range from ₹30,000 to ₹35,000. At the same time, in the outskirts, such as Glenwood Layout and Budigere Cross, monthly rents exceed ₹25,000, according to Kiran Kumar, Vice President of Hanu Reddy Realty.
Local brokers report that many tenants have turned down rental listings, citing rents that exceed their salaries. These are mostly young professionals who have recently started their careers in Bengaluru, said Sunil Singh, Director of Realty Corps. “Typically, to afford a rental of ₹15,000, one needs a salary of at least ₹40,000-50,000. For a 1BHK costing ₹20,000-25,000, the minimum required income is around ₹80,000 per month. For a family of three to maintain a decent lifestyle in Bengaluru, the minimum monthly expense is approximately ₹1 lakh.”
Investment options in UAE are driven by higher rental yields
Experts say the UAE remains a top investment choice for Indians, driven by its superior infrastructure and tax-free income, despite its high cost of living.
“In Bengaluru, the typical rental yield is about 3-4.5% depending on area and property type. However, an investment in Dubai gives a minimum rental yield of 7% irrespective of the location, making it an attractive prospect for investors,” Vijay Sawlani, a Dubai-based consultant at Property Junction, said.
Experts say that among the prominent areas that may continue to see growth are Jumeirah Lake Towers (JLT), Dubai Silicon Oasis, Jumeirah Village Circle, Dubai Production City, and Dubai South. “Dubai continues to remain a magnet for investors and is one of the most affordable luxury destinations in the world in comparison to many of its counterparts, including Hong Kong and Singapore, etc,” Morgan Owen, Managing Director – Middle East & North Africa, ANAROCK Group told HT.com.
Typically, in UAE, affordable real estate options can be found in Jumeirah Village Circle and Business Bay for 120 to 170 AED per sq ft ( ₹2000-4000 per sq ft). Yet 2BHK rents in these areas start at over ₹2.2-2.6 lakh per month, Sawlani said, adding rentals in Dubai start from ₹1.9 lakh per month for a studio apartment and can go over ₹5 lakh monthly for a 2BHK.
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