Many startup owners in Bengaluru see hunting for office space as a costly lesson in staying afloat, not just business plans. Landlords ask for 10 to 15 lakh rupees in deposits for basic spots. This matches a full year’s fees at a top business school, say money experts. They note this tight spot hits new founders hard. These folks balance home bills, family needs, and company goals all at once.
Many startup owners in Bengaluru see renting office space as a steep survival course. Landlords demand 10 to 15 lakh rupees in deposits. That rivals fees at business schools. (Stock photo) (Unsplash)
Startup owners say the money strain from commercial rents in Bengaluru has hit new highs. Chandralekha M.R., a money advisor and head of fintech firm Dime, posted her story on LinkedIn lately. She compared landlords here to those in other big cities.
“In Delhi, deposits run two months’ rent. Mumbai asks for six. Bengaluru? Ten months flat!” she noted. While looking for a spot for her expanding team in Bengaluru, Chandralekha got a shock. A landlord wanted 10 months up front. “At 50,000 rupees a month, that’s 5 lakh right away to grab the keys. My yearly total? 11 lakh! I grew up here, but it still seemed crazy,” she added.
More Stories ‘Control your wife’: Mira Rajput faces online hate, Shahid Kapoor pulled in over fireworks post Woman from India stabs husband in US after he skips house chores Who is Mehul Goswami? Man from India in New York caught with secret side job, risks 15 years behind bars Pavitra Punia engaged to businessman post-split from Eijaz Khan, hides his name. Check photos Man in Bengaluru kills girlfriend’s child by slamming head on floor for privacy interrupt ‘Look, I’m in great shape’: Satish Shah chatted with TV wife Ratna Pathak hours before passing, bragged on health days prior Ramya Krishnan holds back tears chatting with Jagapathi Babu on Soundarya: ‘She stayed true amid stardom’ Son of ex-Punjab police chief, dead last week, claimed dad cheated with wife Office rents in key Indian cities
Knight Frank’s APAC Office Report for July to September 2025 shows Bengaluru’s top rents in the main business area hit 1,807 rupees per square foot yearly. That marks 2% growth from last quarter and 8.8% from a year ago. Vacancy sits at 11.5%, one of the tightest in big cities. Rents should climb more in the next year.
In Mumbai’s Bandra Kurla Complex, top rents average 3,953 rupees per square foot a year. Growth was 2% quarter-over-quarter and 3.9% year-over-year. Vacancy hovers at 17.3%, yet rents in this money hub look steady ahead.
Delhi-NCR’s Connaught Place leads with 4,200 rupees per square foot yearly. It saw 2% quarterly and 3% annual rises. Vacancy is 12.5%. Experts see no big rent shifts in the year to come.
Vimal Nadar, who leads research at Colliers India as national director, says picking buy or rent for commercial space ties to company size, cash on hand, and future aims. “It boils down to start costs, ongoing payments, setup and upkeep fees, plus legal fees,” he explained.
Buying office space in Bengaluru means a big initial outlay. That covers buy price, stamp duty, and registration. Add costs to design and furnish it for work. Renting skips those hits up front. Deals often need 6 to 9 months’ rent as deposit, no interest paid back. Rents rise 5% yearly or 10 to 15% every three years, per experts.
Nadar notes young companies lean toward shared workspaces now. “Managed spots charge per seat. They let firms grow or shrink as needed. No heavy ownership load long-term,” he said.
Handle money right: Keep personal and work funds separate, say pros
Money planner Suresh Sadagopan warns new business starters often mix home and work cash. “Set aside two years of personal spending before launch. Cover loans, home costs, kids’ school if needed,” he urged.
He says folks lowball how much cash a new business eats early on. “Bills run higher than planned. Income lags behind,” Sadagopan added. “Figure exact personal input to the firm. Know how long you last without pay.”
For partners starting a venture, he suggests not both leaving jobs right away. “One should keep steady pay until things settle. Key if you have family relying on you,” he said. “Startups carry risks. Better one holds income while the other dives in.”
Sadagopan adds to count full costs of a work space before jumping. A small office at 2 to 3 lakh monthly rent might total 4 to 5 lakh out each month. That includes power, fixes, and extras. “Earnings must top rent and bills easy,” he said. “Or the firm stays broke all the time.”
Pros say owning space builds value over time. But renting or managed spots give key wiggle room in shaky startup days. As Sadagopan summed it, “In business, just lasting pays off most, beyond land gains.”