Bengaluru Real Estate Prices Surge: High Demand and Limited Inventory Driving Growth

Bengaluru’s residential real estate market continues to rise as demand surges while available inventory remains limited. Areas such as Bagaluru, Hennur, Whitefield, and Varthur-Sarjapur are witnessing substantial price increases, a phenomenon largely driven by pent-up demand from the pandemic era.

Key Growth Areas

In particular, Bagaluru has seen a remarkable transformation, with property prices soaring by 90 percent in just five years. A report by ANAROCK highlighted that property values in Bagaluru jumped from ₹4,300 per sq. ft. in 2019 to ₹8,151 per sq. ft. in 2024. Other developing areas in Bengaluru, such as Sarjapur and Whitefield, are also experiencing significant growth, with Sarjapur Road seeing prices rise by 58 percent during the same period.

For those interested in big apartments in Bangalore, these neighborhoods offer significant opportunities for investment. The surge in demand is also attributed to the influx of the IT sector and infrastructure projects like the metro expansion.

Affordability Concerns

Despite this growth, affordability remains a significant challenge, particularly for first-time homebuyers. In Whitefield, despite the launch of 18,600 new units this year, no affordable housing projects were introduced. Similarly, Sarjapur witnessed 36,150 new units, but only 8 percent were designated for affordable housing.

With the increasing cost of homeownership, many potential buyers are now shifting towards rental properties. Rental prices in Bengaluru have risen by approximately 5-8 percent in the past year due to the growing demand in prime areas near employment hubs. However, luxury apartments in Bengaluru remain a lucrative investment option for buyers seeking premium living spaces.

The Impact of Limited Inventory

The shortage of ready-to-move-in homes has also contributed to price hikes. According to Shivam Agarwal, Vice President of Strategic Growth at Sattva Group, the scarcity of ready-to-move-in homes in key micro-markets is pushing prices higher. This trend is further corroborated by Brigade Group's COO of Residential, Viswa Prathap Desu, who emphasized that demand for homes in areas like Whitefield and North Bengaluru remains robust.

Devanahalli to Doddaballapur is another developing corridor that is poised for future growth. As infrastructure improves and connectivity strengthens, these areas will likely see a steady rise in real estate prices, offering significant returns for investors.

Future Outlook

Despite rising prices, experts believe that Bengaluru’s real estate market still has room for further growth. As the city’s IT sector continues to thrive and new infrastructure projects emerge, residential and commercial real estate in the region will remain strong.

For instance, the upcoming 500-acre tech city in Hosur is expected to create new opportunities for buyers and investors alike. Additionally, Brigade Eldorado in Bengaluru is emerging as a key investment destination, offering a mix of residential and commercial spaces. Those interested can view Brigade Eldorado photoshere for more details about the project.

Looking ahead, areas like Devanahalli and North Bengaluru will continue to be in high demand, particularly for those seeking best luxury apartments in Bangalore. These areas are well-positioned for future growth, making them ideal for both investors and homebuyers.

Conclusion

Bengaluru’s real estate market is undergoing a rapid transformation, driven by increasing demand, limited inventory, and ongoing infrastructure projects. While affordability remains a challenge for some buyers, the city’s real estate market is expected to remain resilient, especially in developing areas in Bengaluru.

Explore more about the ongoing real estate trends and opportunities at PropPulse for deeper insights and detailed market analysis.