Residential values in Bengaluru have climbed sharply since the pandemic, and market forecasts now point to another strong growth cycle through 2030, driven largely by infrastructure expansion in the city’s northern and eastern corridors. Analysts estimate average prices could rise 40–73 per cent over the next five years, depending on location and supply conditions.
In early 2021, citywide residential prices hovered around Rs 5,500 per sq ft as the market recovered from pandemic disruptions. By late 2025, averages had approached Rs 9,500 per sq ft, reflecting a structural shift towards premium housing and larger-format homes. Sales volumes remain robust by historical standards, though unsold inventory has expanded as developers launch higher-ticket projects. North Bengaluru has emerged as the standout growth corridor, supported by the expansion of Kempegowda International Airport and proposed business districts around Devanahalli. Property consultants report that select micro-markets in this belt have witnessed price appreciation exceeding 70 per cent over four years, with premium launches increasingly targeting senior executives, returning NRIs and high-net-worth buyers. East Bengaluru, particularly Whitefield and Sarjapur Road, continues to benefit from metro connectivity and established IT employment clusters. Planned extensions under Metro Phase 3 are expected to further compress commute times, a factor that historically correlates with price appreciation in transit-linked neighbourhoods. Rental yields across the city have improved to 4–6 per cent, offering relatively stable cash flows compared with other Indian metros.
Policy tailwinds have also played a role. Extensions to housing incentives under Pradhan Mantri Awas Yojana and supportive home loan rates have sustained end-user demand in select segments. However, the city’s current growth phase is markedly premium-led, with ultra-luxury launches forming a rising share of new supply. Market researchers caution that inventory overhang, estimated at 5–7 per cent in certain pockets, could moderate price escalation if absorption slows. Oversupply risks are more pronounced in micro-markets where speculative launches outpace infrastructure completion. Urban economists argue that Bengaluru’s long-term trajectory will depend on integrated planning. The Peripheral Ring Road and suburban rail projects are expected to redistribute growth more evenly across the metropolitan region. Without synchronised land-use planning, rapid appreciation in core corridors could exacerbate affordability pressures for middle-income households. Looking ahead to 2030, projections place citywide averages between Rs 13,000 and Rs 16,000 per sq ft, with prime northern and eastern clusters potentially exceeding Rs 20,000 per sq ft.
While headline numbers suggest momentum, sustainable expansion will require careful calibration of supply, infrastructure readiness and climate-sensitive urban design. For investors and homebuyers alike, Bengaluru’s next phase will hinge not just on price growth, but on how effectively the city aligns development with mobility, resilience and equitable access to housing.
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