Bengaluru is becoming increasingly unaffordable, silently eating into savings, says IT firm director

Bengaluru, once hailed as India's Silicon Valley, is now facing an affordability crisis that is squeezing its middle-class residents, particularly those in the IT sector. Harish A N, director at software firm Ceiyone, has sparked a conversation with his LinkedIn post, highlighting the city's soaring living costs, stagnant salaries, and worsening infrastructure.


The financial squeezeHarish's post outlines the spiraling expenses that have turned essentials into luxuries:

• Milk Prices: Increased by Rs 4 per litre in March, now priced at Rs 47.
• Diesel Costs: Rose by Rs 2 per litre in April, reaching Rs 91.02.
• Public Transport: Namma Metro fares, already among the highest in India, saw a hike to Rs 90 for the maximum fare.
• Housing: The average rent for a 2BHK apartment in areas like Whitefield or Koramangala has surged to Rs 40,000 per month, up from Rs 25,000 a year ago.

For freshers and early-career professionals migrating from Tier-2 and Tier-3 cities, the dream of making it in Bengaluru is increasingly turning into a financial struggle.

Adding to the financial burden is the city's infamous traffic congestion. Areas like Hebbal have become notorious for gridlock, with some commuters spending over two hours to reach their workplaces. Rising electricity tariffs and garbage taxes further compound the challenges faced by residents.

Harish also pointed out the mismatch between rising expenses and stagnant incomes in the IT sector. Once celebrated for its lucrative pay hikes and bonuses, the industry now sees professionals struggling to keep pace with inflation, eroding their savings and financial security.

Read the complete LinkedIn post here Bengaluru is becoming increasingly unaffordable, silently eating into the hard-earned savings of its residents. Are you feeling the same pinch?

Milk Price Hike: Nandini milk prices rose ₹4 per litre on March 7, 2025, reaching ₹47 with reduced packaging from 1,050 ml to 1 litre.

Diesel Price Surge: Diesel prices went up ₹2 per litre on April 1, 2025, due to a sales tax hike, pushing the cost to ₹91.02.

Local Travel Costs: Namma Metro fares increased on February 9, 2025, making it India’s costliest metro, with the maximum fare rising from ₹60 to ₹90.

Rising Utility Costs: Public transport, power tariffs, garbage tax, and even coffee powder have seen sharp price hikes.

Soaring Rental Costs: A 2BHK in Whitefield or Koramangala now costs ₹40,000/month, up from ₹25,000 just a year ago.

Traffic Congestion: Peak-hour commutes stretch over two hours, with Hebbal becoming a notorious traffic choke point.

Stagnant Salaries: Despite rising costs, salaries remain stagnant, with IT sector hikes barely outpacing inflation.

Young freshers from Tier-2 and Tier-3 cities face the harsh reality of high PG rents, food, and travel costs, questioning if Bengaluru’s opportunities are worth the strain.

Bengaluru’s rising costs, stagnant wages, and worsening congestion make it an increasingly unaffordable city. It’s time the authorities listen to the ground realities.

However, it’s the middle class that bears the brunt, as rising costs outpace stagnant incomes, leaving them squeezed between skyrocketing expenses and limited financial growth.

Yet, amidst the financial strain, Bengaluru’s pleasant weather remains a saving grace, drawing people in with its cool breeze and mild climate, making it hard to say goodbye.

Is it just Bengaluru, or is this trend affecting major cities worldwide? How does the cost of living compare globally?