In 2024, Bangalore’s real estate market is booming due to the expanding IT sector, vibrant startup scene, shift back to office work, and infrastructure developments. High-end office spaces, luxury homes, new roads, and metro lines are driving property values up.
Real estate in Bangalore has witnessed massive transformation, making it one of the most lucrative investment options. In this article, we will look at market trends in more detail while also analysing the factors affecting Bangalore’s real estate market in 2024.
Real estate produces consistent income through rental yields or capital appreciation over time. This consistency gives homebuyers and investors a sense of comfort, and fits their long-term financial objectives of accumulating wealth and securing a comfortable future.
Table of Contents
Overview of Bangalore’s Real Estate Market in 2024
With a thriving economy, vibrant culture, and numerous opportunities to grow, the city draws many people from across the globe, well into 2024. Regarded as the hub of the Indian IT industry, Bangalore is considered one of the most significant places for innovation.
Organisations like IBM, Microsoft, Accenture and Google have established large offices and campuses in Bangalore. Numerous startups and business owners are based in the city. Areas that are in great demand in 2024 include Whitefield, ORR, Sarjapur Road, Yelahanka, and Banashankari.
Residential Real Estate Trends in Bangalore
Known as the IT and startup hub of India, the city continues to attract people from around the country and the world – making it a lucrative market for real estate investment. Bangalore’s residential market in 2024 has seen robust activity and notable growth, making it an appealing option for first-time and seasoned real estate investors.
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Investment Opportunities in Suburbs
Highly sought-after locales of Bangalore – such as Devanahalli, Thanisandra, and Electronic City – offer fantastic investment opportunities due to their proximity to major commercial hubs and improving infrastructure. Devanahalli is gaining popularity for its excellent connectivity to Kempegowda International Airport and North Bangalore, making it a strategic location for investment. Electronic City is one of the key IT hubs in the city – easily accessible from South and East Bangalore.
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Market Dynamics and Sales Trends
In Q1 2024, Bangalore recorded the highest residential sales volume in India, with 16,995 units sold, reflecting a 30% year-on-year growth. However, this period also showed a significant quarter-on-quarter decline in new supply, indicating tightening in the market. The mid-segment (₹50-75 lakh) and premium segment (₹1-1.5 crore) properties dominated sales, highlighting the diverse budget preferences of homebuyers.
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Emerging Hotspots
Key neighbourhoods such as Sarjapur Road, Bellandur, and Yelahanka are emerging as top investment zones due to their robust infrastructure, commercial vitality, and vibrant communities. These areas will continue attracting significant investment and development.
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Infrastructure Developments
Bangalore is witnessing transformative infrastructure projects, including new metro lines and suburban rail corridors, which will enhance connectivity and boost real estate values. Notable projects include the Blue Line metro connecting Silk Board to Kempegowda International Airport (expected to be completed by mid-2026) and the Peripheral Ring Road encircling the city.
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Sustainable Development
The city’s real estate sector is also embracing sustainable and eco-friendly practices. Developers are integrating features such as rainwater harvesting, solar power, and innovative waste management systems into their projects, aligning with the preferences of environmentally conscious buyers.
Commercial Real Estate Trends in Bangalore
India’s Silicon Valley remains a key hub for businesses across various sectors. The city attracts both domestic and international investors, bolstered by its strong economic growth and an ever-growing skilled workforce.
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Key Office Markets and Leasing Activity
Bangalore continues to dominate the commercial real estate market in India. In Q1 2024, Bangalore and Hyderabad led the country in premium office space leasing activity. This surge is driven by the city’s robust infrastructure and strategic location, making it a prime choice for businesses. Areas like Electronic City, Whitefield, and Marathahalli are particularly popular due to their proximity to residential areas and major IT hubs.
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Growth and Trends in Office Spaces
The demand for flexible office spaces has increased significantly due to the rise of hybrid work cultures post-pandemic. Coworking spaces have seen a substantial rise, with net absorption in office space increasing to 44% from Q1 2023 to Q1 2024. This trend will continue as more companies – including startups and large corporations – opt for coworking and managed spaces to provide flexible working arrangements.
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Infrastructure and Connectivity Developments
Bangalore is witnessing transformative infrastructure projects aimed at enhancing connectivity and boosting the commercial real estate market. Key projects include new metro lines connecting important areas and central business districts to the Kempegowda International Airport.
Peripheral Ring Road, NICE Road, Bangalore-Chennai Expressway, Bangalore-Mysore Expressway, and CDP Road Network will significantly reduce travel time and congestion in & around the city, making office locations more accessible and attractive.
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Market Outlook
The outlook for Bangalore’s commercial real estate market in 2024 remains positive. The city continues to attract substantial investment – driven by its thriving tech industry, supportive government policies, and strong infrastructure development. The demand for office space will remain high, with particular emphasis on flexible and premium office spaces. Investors can expect continued growth in both demand and rental yields, making Bangalore an appealing destination for commercial real estate investment.
Key Trends in Bangalore Real Estate Market 2024
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Demand and Supply Dynamics:
Buyer demand remains robust, with a notable increase in property sales and a surge in new project launches in 2024. Residential projects, in particular, are seeing significant traction.
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Property Price Movements:
Anticipated price trends indicate a steady rise in both residential and commercial property segments, especially in well-connected micro-markets.
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Emerging Localities:
Areas like Whitefield, Sarjapur Road, and North Bangalore are experiencing substantial growth in 2024, and attracting considerable investment due to improved connectivity and infrastructure.
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Focus on Sustainability:
Eco-friendly features and sustainable development are becoming increasingly important, with many new projects incorporating green building practices and renewable energy sources.
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Rise of PropTech:
Technology is playing a pivotal role in the market, with virtual tours, online transactions, and digital property management solutions becoming more prevalent.
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Affordable Housing:
This demand continues to grow, supported by government initiatives and incentives aimed at making housing more accessible to the middle and lower-income segments.
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Impact of Infrastructure Development:
Major projects such as the Bengaluru-Chennai Expressway will significantly boost real estate development in certain areas, enhancing connectivity and driving property values.
Infrastructure Developments and Connectivity in Bangalore
The city is undergoing significant infrastructure development that will enhance connectivity and support its ever-expanding population. Let us explore some of the key projects in 2024 and beyond:
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Satellite Cities and Ring Roads
Plans are in place to develop satellite cities in Devanahalli, Doddaballapur, Nelamangala, and Bidadi. These towns will be connected by the under-construction Bangalore Satellite Town Ring Road (STRR) and the recently opened Bangalore-Mysore Expressway.
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Major Expressways
Bangalore-Vijayawada Expressway: This 518 km long, 6-lane, access-controlled expressway aims to reduce the travel time between the two cities from 12 hours to 6 hours.
Bangalore-Chennai Expressway: Scheduled for completion by the end of 2024, this 262 km expressway will cut travel time between two of the largest cities in South India, Bangalore and Chennai, by 1-2 hours.
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Metro Connectivity
Bangalore’s metro network is expanding under the Metro Rail Phase-2B project, which will cover northern parts of the city, including Kempegowda International Airport. This expansion will significantly reduce travel time and ease congestion in key areas such as Whitefield and Electronic City.
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Comprehensive Urban Plan
The Revised Master Plan 2041 aims to transform Bangalore into a ‘compact city’ by promoting development around public transport systems. This plan includes significant upgrades to metro and road infrastructure, ensuring enhanced support for the city’s growth.
These infrastructure projects will drive the demand for housing, with estimates suggesting that more than 100,000 new residential units will be required by 2025. Improved connectivity and reduced travel time will make the city an even more attractive destination for businesses and residents alike.
Sustainability and Green Real Estate Initiatives in Bangalore
In Bangalore’s real estate market 2024, the trend towards sustainable and green homes is gaining significant momentum. Developers are increasingly incorporating eco-friendly features to meet the rising demand for green housing solutions. These sustainable homes are designed to minimise environmental impact, enhance energy efficiency, and promote eco-friendly practices.
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Energy Efficiency
A key component of sustainable real estate is energy efficiency. Buildings designed with energy-saving features such as solar panels, energy-efficient lighting and HVAC systems, and smart building technologies reduce the city’s carbon footprint while lowering energy costs for residents and businesses.
Better indoor air quality and thoughtful landscaping that promotes biodiversity are also integral to these sustainable homes. According to a report by KPMG, India’s green building footprint has grown substantially, with Bangalore being a frontrunner in this transformation (KPMG) (Jones Asset).
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Innovative Design and Construction
Architects in Bangalore are reimagining traditional designs to seamlessly integrate sustainable features like green roofs, vertical gardens, and passive cooling techniques. These innovations not only reduce the environmental impact but also create healthier, more pleasant living environments. The use of sustainable materials, natural ventilation, and smart building automation systems further enhance the sustainability of these structures.
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Government Initiatives
The Indian government has introduced several initiatives to promote green and sustainable housing. Certifications such as the Green Rating for Integrated Habitat Assessment (GRIHA) and Leadership in Energy and Environmental Design (LEED) encourage developers to adhere to sustainable practices. Financial incentives and tax benefits are also offered to those who adopt eco-friendly measures. These initiatives have significantly accelerated the development of green real estate in Bangalore.
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Community Engagement
This plays a crucial role in promoting sustainable living. NGOs and environmental organisations conduct awareness campaigns and workshops to educate citizens about sustainable practices. Active community participation in initiatives like waste management, composting, and recycling strengthens the green movement in the city.
Growing demand for sustainable and green buildings in Bangalore in 2024 reflects a broader shift towards environmental consciousness and responsibility. By embracing sustainable practices, the city is setting a benchmark for other urban centres, balancing economic growth with ecological sustainability. For more information on these trends and initiatives, you can explore detailed reports from KPMG and JLL.
Legal and Regulatory Updates
Following are the key legislations impacting real estate in India.
Real Estate (Regulation and Development) Act, 2016 (RERA)
- Purpose: Protects the interests of homebuyers and promotes transparency in the real estate sector.
- Key Provisions: Establishes Real Estate Regulatory Authorities and Appellate Tribunals for dispute resolution. Mandates registration of real estate projects and agents, ensuring accountability and timely project completion. Builders must quote prices based on carpet area, not super built-up area.
- Penalties: Non-compliance can lead to significant penalties, including daily fines and imprisonment for severe violations. For instance, promoters providing false information may be fined up to 10% of the project’s cost, and failing to comply with orders can lead to imprisonment.
Transfer of Property Act, 1882
- Scope: Governs the transfer of property in India, including sales, loans, leases, and gifts.
- Significance: Ensures clear and legal transfer of property rights, providing a framework for property transactions.
Registration Act, 1908
- Function: Mandates the registration of documents relating to the transfer of property, in order to establish clear property titles and reduce fraudulent transactions.
Indian Stamp Act, 1899
- Requirement: Imposes stamp duty on property transactions, which varies by state. Ensures the authenticity and legality of documents.
Investment Opportunities and Forecasts
Promising Investment Zones in Bangalore
- Top Locations: In 2024, areas such as Sarjapur Road, Banashankari, Devanahalli, Thanisandra, and Panathur are anticipated to generate higher returns on investment. These regions benefit from proximity to business hubs and strong infrastructure.
- Rising Demand: Bangalore’s robust IT industry drives economic growth, boosting housing demand. The city remains an attractive destination for real estate investments due to excellent rental yields, averaging between 5% and 7%.
Rental Yields and Housing Demand
- Rental Market: High demand for rental properties in 2024 has made Bangalore a reliable source of rental income for investors. The city’s growing population and influx of professionals contribute to increasing rental demand and property values.
- Economic Growth: Continuous expansion of the IT sector and startup ecosystem further support the real estate market, offering ample opportunities for investors.
Bangalore Real Estate Market Forecast 2024
The outlook for Bangalore’s real estate market in 2024 remains positive, driven by many key trends and factors.
Market Growth
Experts anticipate continued growth in the Bangalore real estate market in 2024. According to Knight Frank’s Asia-Pacific Outlook 2023, residential property prices in Bangalore are expected to grow by 5% annually. Business Insider India is even more optimistic, forecasting a 12% increase in prices for 2024. This robust growth highlights the city’s appeal to both investors and homebuyers.
Emerging Micro-Markets
Bangalore’s real estate boom and positive trends of 2024 have led to the emergence of several micro-markets, which offer unique features and cater to specific demographics:
- Outer Ring Road (ORR): This stretch, including Sarjapur Road, KR Puram, and Hebbal, is highly favoured by IT professionals due to its excellent office space and connectivity.
- Whitefield: A major IT hub with a good mix of residential and commercial options
- North Bangalore: Known for good infrastructure and proximity to the airport, this area attracts families and investors alike.
- East Bangalore: With leading educational institutions, large companies, and excellent infrastructure, this area is ideal for families and professionals.
Investor Interest
Bangalore continues to attract significant investor interest. Knight Frank ranks it as the 2nd best performing market out of 24 tracked in the Asia-Pacific region. The city’s strong economic fundamentals and continuous infrastructure development contribute to its attractiveness as an investment destination.
Factors Driving Bangalore’s Real Estate Growth in 2024
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Thriving Tech Industry:
Known as the Silicon Valley of India, the city has a robust IT and tech sector, drawing significant talent and investment.
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Strong Startup Culture:
Supportive environment for entrepreneurs fuels a steady flow of innovative startups, reinforcing Bangalore’s status as a tech hub.
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Government Support:
Policies promoting IT growth and infrastructure investments, such as the metro rail network, enhance connectivity and attract businesses.
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Skilled Workforce:
Top universities and educational institutions produce a highly skilled talent pool tailored to the needs of large MNCs and startups alike.
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Infrastructure Development:
Ongoing improvements, such as better roads and a metro system, enhance the quality of life and facilitate business operations.
Additional Considerations
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Inventory Levels:
Market activity and unsold inventory play a role in price fluctuations. Staying informed about current levels is crucial for making informed decisions.
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Construction Costs:
Rising costs of construction materials in Bangalore add to the overall cost of projects, which may lead to higher property prices.
Conclusion
An excellent way to ensure a better future in a city like Bangalore is to own a property. 2024 is the best time to invest your money in your perfect home. Choose a reputable builder and ensure that your homebuying experience is simple and stress-free.
What is even better is choosing a project that assures on-time delivery. Residential developments in Bangalore combine a high standard of living with modern & spacious homes equipped with world-class amenities and panoramic views.
FAQs
1. What are the expected price trends for residential properties in Bangalore in 2024?
The expected price trends for residential properties in Bangalore in 2024 are overall positive. Some analysts anticipate stable / moderate growth in prices. When evaluating potential price changes, it is important to consider the specific locality, property type, and project features.
2. Which areas in Bangalore are expected to see the most growth in 2024?
Areas in Bangalore expected to see the most growth in 2024 are Sarjapur Road, Whitefield, Electronic City, and Devanahalli.
3. What is PropTech and how is it impacting the Bangalore real estate market?
PropTech refers to the technology-driven solutions used in the real estate industry – such as online property listings, virtual tours, and digital transactions. PropTech is making the market more accessible, efficient, and transparent for both buyers and sellers.
4. What is the forecast for real estate in Bangalore in 2024?
The forecast for real estate in Bangalore in 2024 is continued growth, rising prices, and strong investor interest. Expect a seller's market with potential price increases of 5-12%.
5. Is real estate a good investment in Bangalore in 2024?
Yes, real estate is a good investment in Bangalore in 2024, with rising prices (5-12%) due to strong demand. The best year to buy real estate in Bangalore is 2024 due to increased investor interest – especially NRIs and OCIs – and a solid economic outlook.
6. Is 2024 a good year to buy a house in Bangalore?
Yes, 2024 is a good year to buy a house in Bangalore. If you are looking for an investment with potential appreciation, 2024 is the time to buy. However, prices might be higher than usual, so consider your budget and long-term plans before taking a final decision.
7. Why is real estate booming in Bangalore?
Real estate is booming in Bangalore due to demand driven by the city's expanding population and relatively lower expense of living. According to Bangalore real estate trends 2024, many people are looking for opulent and easily accessible dwelling options.
8. Will flat prices go up in Bangalore
Yes, flat prices could go up in Bangalore, as the city has witnessed the most increase in house costs, at 7%, while Mumbai saw a 6% increase. In contrast, prices in Chennai and Hyderabad increased by 5% each in the first quarter of 2023.
9. Why is house rent so expensive in Bangalore?
House rent is so expensive in Bangalore due to employees’ return to work-from-office, creating a spike in demand for housing. Another reason is higher commute times that have forced professionals to pick residences close to their workplaces, typically concentrated in particular locations, increasing the demand for apartments.
10. What is the future growth of Bangalore?
The future growth of Bangalore is highly promising, with a strong upper trajectory anticipated for residential prices in the city. 2024 is the perfect time for investors and purchasers to explore Bangalore's real estate market, as they can expect higher returns in the future.