Despite a recent stabilization in rental prices and geopolitical uncertainties, Bengaluru’s real estate market continues its upward trajectory. While the central areas face congestion, a significant shift towards northern parts of Bengaluru has been evident due to a rising demand for serene living environments, leading to substantial property value appreciation.
Bengaluru, the Silicon Valley of India that has been thriving as a leading IT exporter, extending its branches to education, biotechnology, aerospace, manufacturing, innovation, startups, and so much more, has accelerated its real estate market. Despite the rental prices stabilizing and cooling down after a surge in 2023-24, Bengaluru has continued to drive growth in this sector, with average residential pricing of INR 7,900 per sq. ft., recording 5% quarterly increases in Q1 2025, according to PropTiger.
With its perfect weather, amazing cuisine, booming job opportunities and soaring educational institutions, the city has seen an influx of migrants every year. This has skyrocketed the rental, leasing, and buying rates of living spaces. With the main city areas are experiencing the congestion, individuals are moving to organized northern parts of Bengaluru for peace, tranquility and serenity.One can see the growth of residential property and rising demand for rental homes. Areas near Devanahalli and Sarjapura are witnessing an appreciation of 20-25% annually and monthly rental income returns of more than ₹30,000, with Sarjapura property prices rising 63% over 3 years.
The Northward Shift.
Bengaluru real estate is looking forward to creating a dual spatial arrangement that balances leisure and productivity. Areas at the farthest end of the city, like North and East Bengaluru, are growing in an orderly and structured manner, unlike the main city, which is crowded and chaotic. Regardless of the tumultuous city life that Bengaluru has, these areas offer placid, undisturbed living space. Moreover, to boost connectivity, the state government has begun construction of the peripheral ring road and several metro lines, increasing the frequency of public transportation to connect these areas to the major landmarks across the city.
In addition to residential buildings, North Bengaluru is seeing the construction of international schools, industries, and other establishments, such as the iPhone factory in the ITIR industrial area. Bengaluru currently houses numerous international companies like Accenture, Infosys, IBM, SAP Labs, Deloitte, Goldman Sachs, etc driving demand for labour force. Since premium properties are predicted to triple in value over the next few years and offer satisfactory ROI, NRIs have been focusing on buying them. The proximity to Kempegowda International Airport has also influenced this property buying.Real estate data reveals that 40% of NRI transactions are concentrated in North Bengaluru. Given its proximity to several major destinations like the KIA airport, top-tier schools, and hospitals and large IT parks, North Bengaluru has become a sought-after destination for living.
Current Trends
Home buyers are increasingly opting for minimalistic, eco-friendly living spaces, biophilic designs, smart living and sustainability that embraces both indoor and outdoor spaces, focusing on wellness, personalization and rejuvenation with many developers meeting this demand.
Numerous multinational corporations, global industries, and IT hubs post-pandemic have set off the work-from-home lifestyle. People are looking for spaces that can not only enhance their productivity but also provide peace during times of stress. Smart homes that are flexible for the future and that can accommodate emerging technology are the new rage.
The balance of technology and sustainability is currently in vogue. So it is not just the integration of new amenities but also the creation of energy-efficient and eco-friendly infrastructure. Properties that cater to the diverse needs of organized residential, recreational and work spaces ensure optimal performance and minimize conflicts of zones intersecting, thereby giving their customers developed and well-planned urban living properties. The increasing number of health and environment-conscious people are going for eco-friendly, breathable and sustainable spaces in North Bengaluru which can holistically improve their life.
Long Term Growth Potential
Bengaluru has proved to its residents the long-term growth potential of its real estate market. With steady growth, the market is set to hit a 30% increase in property prices by the year 2030. Experts predict that most localities near Devanahalli and Sarjapura will likely see a double-digit appreciation in the next few years. Fuelled by its thriving IT sector, expanding industries, and growing educational institutions, it continues to attract a large influx of professionals and investors. This sustained demand, coupled with ongoing infrastructural development, particularly in the organized northern corridors, positions Bengaluru as a promising market for residential real estate.
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