Search and Buy Real Estate in Bangalore

Bangalore is the capital of Karnataka in India. Though widely known as Bangalore, its official name was changed to ‘Bengaluru’ in November 2014. It contributes a lot towards the economy of the state. It witnesses a rapidly transforming real estate market. Its residential and commercial real estate sectors attract many Indian and foreign investors. The prices of residential real estate are increasing due to the developments going on in the city. Housing prices in Bengaluru have increased by 19% year-on-year (YoY) in the January-March quarter of 2024. It was the highest increase in residential prices among the eight major Indian cities. Being dotted with IT hubs like Whitefield and KR Puram, the city is witnessing a high demand for spacious units, particularly 3 BHK and 4 BHK apartments. The presence of several millionaires has led to the growing development of luxury residential projects, especially in the Periphery & Outer North micro market. The property developers in Bangalore are focussing on building more luxury housing spaces to match the specific tastes of High Net Worth Individuals (HNI) homebuyers.

Bangalore is an IT hub, widely denoted as the ‘Silicon Valley of India’. It is blessed with talented personnel and the assistance of investors. Because of this the commercial market of the city is flourishing from top to bottom. The city is designed in a well-planned manner with office spaces close to the residential units.

The growth rate for Bengaluru’s prime office leasing is predicted to be the highest among the 24 APAC cities studied in the report, at 5% to 7% YoY in 2023. The ongoing growth of startups and unicorns and the rising disposable income levels make the city a competent market in the APAC region.

Being a hub of many global giants and Indian unicorns, Bangalore has a promising commercial real estate sector. So, if you are hunting for a new commercial property for sale in Bangalore, contact the prominent real estate agents there. 

Popular Areas for Real Estate in Bangalore

The real estate sector of this Indian city is profusely flourishing. So, if you are seeking rental yields or capital appreciation, you will surely have a slice of what you want. Let's check out a few real estate hotspots in Bangalore.

• Whitefield

Whitefield is dotted with several multinational companies like General Motors, Tesco, IBM, Accenture, Airtel, Oracle, etc. To cater to the housing requirements of IT professionals, several luxury and affordable 1 BHK flats for rent are present in this area. It houses the International Tech Park, designed by a Singaporean architectural firm and is managed by Ascendas. It is even dotted with many high-end and budget hotels to suffice the needs of business travelers. The Forum Shantiniketan, Inorbit Mall, and Phoenix Marketcity are the prominent Malls in this area. Having an average property price of Rs. 9224 per sq. ft., the real estate here is highly sought-after by the young generation. The massive job opportunities provided by this area have stirred the demand for residential and commercial real estate equally. Check out the flats for rent and sale in Whitefield Bangalore listed with the top brokers in the area. 

• North Bangalore

The real estate demand in this area is on the rise due to several infrastructural developments and industrial advancements. The ongoing development of commercial buildings will take the game of commercial real estate in Bangalore to another level. This area is expected to generate more than 3 lakh jobs in the next three years. This will boost the demand for residential plots for sale in Bangalore too to accommodate the working professionals. If you are planning to buy an office space in North Bangalore, then commutation won't bother you. It is well-connected with highways like Outer Ring Road, Bellary Road, New Airport Road, etc. It has a proximity to the Bengaluru Mumbai and Chennai Bengaluru industrial corridors. North Bangalore is strongly connected with the whole of the city. The ongoing projects of Phase 2A of the Namma Metro, the Airport Line, Southwestern Railways Suburban Trans Service Links, and Bengaluru Suburban Railway will further strengthen the realty market of this area. The Devanahalli Business Park, Aerospace Park, Information Technology Enabled Service and Biotechnology, Peripheral Ring Road, Satellite Town Ring Road, Aerotropolis Development…..pheww. Trust us! There's a lot more to it. All these developments will make properties in North Bangalore a perfect real estate investment option. 

• Electronic City

With a total area spanning 800 acres, Electronic City houses several IT parks. These parks in this IT powerhouse have approximately 200 IT company campuses of giants like Infosys, Wipro, Tech Mahindra, HLC, and others. It is divided into 4 phases, namely, Phase 1, 2, 3, and 4. This area is well-connected to the other parts of the city via Hassur Road. The BMTC bus Network, expressways, and Metro Lines enhance the transport system of this area. The upcoming Bangalore Chennai Expressway and the Metro Line 3 will further put stars on the overall infrastructure of Electronic City. Having an average property price of Rs. 5450 per sq ft, Electronic City boasts several gated communities and planned colonies to make it simple for the working population. Its strong social infrastructure is fortified by the presence of VIBGYOR High School, Azim Premji University, Doctor Levine Memorial Hospital, Fortis Hospital, and others. This area offers an array of residential real estate options ranging from affordable 2 BHK flats in Bangalore to well-equipped villas. 

Apart from these, Koramangala, HSR Layout, Indiranagar, and Sarjapur are seeing a high demand for flats for sale in Bangalore. The ongoing project of a 127 km metro line and 270 km of road projects will fortify the transport network of this city. This will in turn boost the commercial and residential real estate dynamics and create numerous property hotspots in the future. 

Navigating Property Prices in Bangalore

Property Trends in Bangalore

The property market of this city is driven by a strong economy, high rental yield, capital appreciation, super connectivity, and good quality of life. The city residents are now getting more inclined towards renting than homeownership. The high property prices and increasing bank interest charges are a major reason for the same. Such obstacles have made homeownership a challenge for the mid-segment. This has made them enquire more about 1 BHK flat for rent in Bangalore. Currently, the mid-segment is struggling and the high-end investors are enjoying the market dynamics.

From April to June 2024, there was an 8% decrease in demand for mid-segment apartments in Bengaluru. The demand for properties priced between ₹80 lakh and ₹1 crore fell by 8.5%, while the demand for homes in the ₹60-80 lakh bracket dropped by 12%. This market trend of increasing property prices and limited availability has made it challenging for many potential buyers to afford mid-segment homes. Whereas, the realty market saw a 4% increase in demand for properties priced above. ₹3 crore in Q2 2024. This growth is driven by the ok. This made the developers also shift the supplies towards the premium segment. The growth of new inventory listings increased from 2.7% to 4.8% in Q2 2024. Out of this, a major chuck was attributed to the luxury segment. Despite this increased supply, overall demand across the market fell by 8%, leading to a slower price increase of 3% quarter-on-quarter, compared to 4.5% in the previous quarter. So, with this, we can conclude that right now the market is favoring the HNI investors. 

Current Market Rates

The current market rates of a few major locations in Bangalore are given below

Future Predictions of Bangalore Real Estate

As per Knight Frank, the developers in Bangalore are expected to create 38 million sq ft of real estate assets in the next five years. The creation of new inventory is expected to balance the overall price increase in the market. So, homeownership will be more affordable for the lower income class and the mid-segment in the upcoming years. Moreover, the real estate market is witnessing a rise in the trend of co-living and co-working spaces. Co-working spaces not only bring economies to scale but also provide a flexible working environment for start-ups. Well, the rental rates are expected to witness a surge. The city is expected to see an increase in housing rentals with the current rise of 24 percent in average inflation, with certain areas witnessing a 30 % spike in rental rates. Government support, IT advancement, and infrastructure developments are collectively making this city a better place to live. 

Investment Opportunities in Bangalore

Residential Real Estate

The residential real estate market of Bengaluru is facing a high demand for luxury apartments and gated colonies. The betterment of IT sector and inflow of Foreign Direct Investment in the city have made many millionaires. So, those who are waiting to invest in residential real estate can buy luxury property in areas like Hebbal, Hennur Road, Jakkur, Whitefield, BTS Layout, Electronic City, and other posh areas. Several investment opportunities are present in these localities for potential investors. Moreover, New launches in Q1 2024 increased by 9% compared to the previous quarter, totaling 12,616 units. Whitefield led the way in new launches, contributing 37% of the total, while Hosur Road and Bellary Road were major contributors. With growing developments of residential units in these localities, the residential real estate sales figures can surely see a surge. This wave of new launches has made Bengaluru emerge as the forefront of residential sales across India in Q1 2024, recording nearly 17000 units sold. Investors can make the most out of this situation by putting their money into the favorable residential real estate market of Bangalore.

Commercial Real Estate

The Electronic City, Whitefield, Marathahali, Koramangala, and Indira Nagar are the major commercial hot spots in Bangalore. With improved connectivity, IT parks, and proximity to residential units, investors from all over the world are choosing Bangalore to set up a new office. Such strong dynamics have made Bengaluru debut in the list of top 20 commercial real estate investment cities in the world. The supportive government policies and upcoming developments are sure to make this city future-ready. The project of PRR and BMIC will ensure commercial development throughout the city. Moreover, the prevailing trend of co-working spaces is dominating the commercial market of Bengaluru. Be it start-ups or established business houses, co-working spaces are bringing economies to all. 

Alternative property options in Bangalore

1. Bank auction properties- These are the properties acquired by the bank due to the inability of the original owner to make a loan repayment. In such cases, the bank puts the property for auction to recover the amount of debt. Buying bank auction properties in Bangalore can be a viable option as these are available at discounted rates and in good condition. These are listed on the official portal of the financial institutions and local newspapers. 
2. Second Hand Houses- These houses too are available at lower prices because these have already been used by an owner for a certain period. All you need to do is to check the property condition, legal clearances, location, and maintenance cost. Make sure that the price of a second hand house for sale in Bangalore is lower than the ongoing market rates. Negotiate with the seller and make the most out of the transaction.

Government Initiatives for Bangalore's Real Estate Sector

The government has played a major role in uplifting the overall economy of this city and turning this so-called ‘Garden City’ of India into the ‘Silicon Valley’ of our country. The government has rolled out several favorable housing policies to ease things out for first-time homebuyers. Consistent enhancement of the infrastructure with the development of roadways, schools, healthcare, etc. has also shaped the city strongly. Let's check out some of the contributions made by the government for the development of Bangalore

Infrastructural Developments

Expanding Bengaluru Metro Rail

Bangalore Metro (Namma Metro) simplifies commuting throughout the city. It is the second-longest Metro network in India which was inaugurated in 2011. The government is continuously expanding this project. With the upcoming Bengaluru Metro Rail Phase 2 (RV Road to Bommasandra), Phase 2A (Outer Ring Road), and Phase 2B (KR Puram to Kempegowda International Airport) the connectivity will tremendously enhance.

• Bengaluru Metro Rail Phase 2

This will connect many small-scale industries in the outskirts with the main city. This is expected to revamp the area with the development of new residential units and office spaces. The traffic conditions of Electronic City Phase 1 and Phase 2 will also improve as this Metro line would be then preferred by many IT professionals. This will further improve the residential and commercial real estate activities in Electronic City. This upcoming project has made some developers plan for new office spaces falling throughout the regions covered by this line along with access to educational institutes, malls, and much more. This will raise the demand for buildings for sale in Bangalore.

• Bengaluru Metro Rail Phase 2A

Metro Line 2A will connect certain residential localities on the Outer Ring Road with the Northern and Eastern suburbs. This project will impact the property prices in these areas. Moreover, the realty market of the undeveloped belt of Mahadevpura to KR Puram will also be benefitted. This development will not only reduce travel time but also uplift the property values in Bangalore.

• Bengaluru Metro Rail Phase 2B

Phase 2B (K.R. Puram to Airport via Hebbal Junction) will have a total length of 37 km and 17 stations. This will make people prefer to buy properties near the metro stations to save time. This project will create many residential and commercial real estate opportunities in the above-mentioned parts of the city. Even the land masses throughout the belt will be enquired after the completion thereby boosting the demand for land for sale in Bangalore.

• Approval of Phase 3

Phase 3 of Namma Metro has recently been approved by the government led by the honorable Prime Minister Narendra Modi. It will start from the Vega City Junction in JP Nagar to Kadabagere on Magadi Road and will cover a distance of 44.65 km. A major portion of this line will pass through the Bengaluru South, providing an efficient transportation system for a large number of commuters. The realty market of areas covered by this line including Bannerghatta, BTM Layout, JP Nagar, Electronic City, and Koramangala is set to witness a boost. This realty boom will be accompanied by a price rise too. So, it is suggested to invest in these areas before the project completion. The strong transport system throughout the best will uplift the demand for residential and commercial real estate in Bangalore.

Bengaluru Suburban Rail Project

Due to completion in December 2027, this suburban rail network project is aimed at developing a suburban railway network of 148 km with 58 stations along four corridors. The corridors would be KSR Bengaluru City to Devanahalli, Baiyappanahalli to Chikkabanavara, Kengeri-Cantonment-Whitefield, and Heelalige to Rajanukunte. The amount sanctioned by the Ministry of Railways is 15767 crores. This project is expected to boost the market of Devanahalli and Rajanukunte by increasing the occupancy rate of residential and commercial spaces. The BSRP might solve the bottlenecks currently faced by the mid-income group as several ready-to-move flats in Bangalore are lined up in the eastern and western micro-markets. This rail network will connect the commercial real estate hubs with the central and eastern regions of Bangalore.

Satellite Town Ring Road

The Satellite Town Ring Road (STRR) project is a 280.8-kilometre (174.5 mi) ring road under construction around the city, Recently PM Modi inaugurated the patch of 42-kilometre Dobbaspet – Doddaballapur section and 37-kilometre Doddaballapura-Hoskote section. It will reduce traffic jams and give relief to commuters and truck drivers carrying industrial goods. This corridor is designed for a speed of 100 kmph and will have 4-6 lanes. 

This will boost the connectivity in the Bangalore Metropolitan Region (BMR). This improved connectivity will make the areas falling across the belt more attractive for real estate investment. This will in turn increase the demand and property prices in the region.

Peripheral Ring Road (PRR)

The Peripheral Ring Road (PRR) is a proposed 12-lane road aimed to decongest the traffic on Outer Ring Road. Peripheral Ring Road (PRR) has 2 components PRR-1 and PRR-2. PRR-1 is a 73-km access-controlled expressway around the east and northern parts of Bangalore. PRR-2 is in the DPR stage, which may cover the other half. It is expected to impact the northern peripheral belt of Yelahanka-Kogilu-Jakkur and other northern locations such as Thanisandra and Nagawara. This project has convinced many real estate builders to develop residential and commercial units in nearby areas to cater to the anticipated demands. After its completion the property rates in Bangalore are expected to rise, especially the areas along with the PRR. This development is going on a fast track and will surely transform many vacant lands into upscale residential and commercial hotspots.

Bangalore Mysore Infrastructure Corridor

This is going to be a whopping 119 km expressway that will reduce the travel time between Bangalore and Mysore from 3 hours to 75 minutes. This 6-10 lane highway will be developed for Rs 8480 crores. It will not only decongest the traffic but will uplift the demand for lands for sale in Bangalore dotted throughout the belt. Many real estate companies in Bangalore are on their toes to build new townships along the expressway. The completion of the corridor will make the region even more attractive for residential and commercial real estate investors. So, invest now, as the property rates in Bangalore are expected to see a sharp rise soon.

Well, the list is not over yet. The mention of upcoming developments in Bangalore would be incomplete without the mention of the 500-crore skydeck that will house restaurants, a sky garden, luxurious complexes, and much more. Apart from this the area of Devanahalli will soon have an Aerospace Park and SEZ that is expected to attract investment from many commercial giants globally.

Housing policies

The government has rolled out several housing policies to make homeownership a feasible option for the residents in Bangalore, Karnataka. Some of them include-

• Karnataka Affordable Housing Policy 2016

This scheme aims to benefit those categorised as Low-Income groups, Below the Poverty Line, and Economically Weaker Sections of the society. The government strives to build new homes and revamp the existing ones to improve the lives of the weaker sections.

• BDA Housing Scheme 

This scheme aims to develop affordable BDA apartments, etc. to cater to the needs of those who are looking for budget housing solutions. This scheme has enabled the low-income group to buy property in Bangalore at economical rates. 

• Karnataka One Lakh Housing Scheme

This initiative by the government has provided housing solutions for the financially weaker section of the society. It offers subsidized home loans at an interest rate of 1% per annum. Those meeting the eligibility criteria can apply for the scheme. It offers viable home loans with tenure of up to 20 years. With this, the Karnataka government has allotted 1 lakh housing to families residing in rural and urban areas of the city.

Such schemes have helped the residents in Bangalore to make their dream of owning a home a reality. This has boosted the quantum of property purchases in Bangalore.

Latest News on Bangalore real estate

The housing prices in Bangalore are seeing a great appreciation. As per the latest Bangalore real estate news, the average housing prices at Bagaluru in Bangalore rose from Rs 4300 sq ft in 2019 to Rs 8151 per sq ft in 2014. This has made Bagaluru rank 1st in the list of highest housing price appreciation in India. It is followed by Whitefield at the 3rd position. This is accompanied by a wave of new launches by reputable real estate developers in Bangalore. This year has witnessed a sharp rise in the new launches in the city @ 45 percent. Around 16537 new residential units have been launched in Silicon Valley itself. This area has even recorded a whopping sales of 18,550 units. This is the highest share of real estate supply in India for Q2. This achievement marks a return of the city to the top position since Q3 2018. The ongoing developments, IT boom, and growing demand for luxury houses can be credited for such impressive figures. So, it won't be wrong to say that Bengaluru is dominating the Indian real estate market.