Bengaluru sees steep 79% surge in house prices over five years, highest among major Indian cities real estate insights & city comparisons
Bengaluru’s housing market has surged a remarkable 79 % in the past five years, outpacing Mumbai, Delhi NCR, Pune, Chennai, Hyderabad, and Kolkata. Driven by booming IT demand, shrinking inventory, and rising per‑sq ft rates, this trend signals Bengaluru’s position as a top real estate investment hub.
Bengaluru Leads India’s Housing Boom: 79 % Jump in 5 Years
Real estate data from 1 Finance reveals Bengaluru’s housing prices have skyrocketed 79 % over the past five years, the highest increase among seven major Indian metros .
| CityPrice/sq ft (₹)5-Year Change (%) | ||
| Bengaluru | ₹10,349 | +79% |
| Delhi NCR | ₹23,378 | +47% |
| Hyderabad | ₹8,622 | +43% |
| Pune | ₹10,920 | +45% |
| Chennai | ₹8,519 | +21% |
| Kolkata | ₹8,179 | +61% |
| Mumbai | ₹26,975 | +42% |
What’s Driving the Surge in Bengaluru?
• IT engine: With over one million tech professionals and high‑paying tech jobs, demand is on fire .
• Inventory crunch: Bengaluru and Delhi NCR are two cities where unsold housing inventory has gone down, indicating strong absorption .
• FOMO effect: Existing homeowners profit, but buyers fear missing the rally or overpaying, says Animesh Hardia of 1 Finance, leading to impulse buying .
Contrast with Other Cities
• Hyderabad: Despite 43 % price growth, unsold inventory soared by 177 % — signaling oversupply .
• Mumbai: Now India’s costliest city with nearly ₹27,000/sq ft average price .
• Others like Pune, Chennai, Kolkata saw modest 20–60 % gains, with supply‑demand imbalances varying per city .
Key Takeaways for Stakeholders
• Investors: Bengaluru remains a hot pick, but high entry prices mean timing and location choices are crucial.
• Homebuyers: Consider sustainability of price growth and avoid emotional rush.
• Developers: Yield-unfriendly but demand-stable—new launches may benefit, but affordability challenges persist.
Source: Economic Times
