Bagaluru, Hennur, Whitefield, and Varthur-Sarjapur are experiencing significant price hikes, reflecting a broader trend in the city’s real estate landscape. The surge in property values is largely attributed to pent-up demand from the pandemic era. A recent report from ANAROCK reveals that Bagaluru, located in North Bengaluru, has seen the most dramatic increase, with residential property prices soaring by 90% from ₹4,300 per square foot in 2019 to ₹8,151 per square foot in early 2024.
Sarjapur Road has also seen a notable rise of 58%, with average prices climbing from ₹5,870 per square foot in 2019 to ₹9,300 per square foot. The limited availability of ready-to-move-in properties is exacerbating the situation. “The dearth of immediate inventory in prime micro-markets is a key driver of the escalating demand,” explains the Vice President of Strategic Growth at Sattva Group. Similarly, Whitefield has witnessed a significant uptick, with 66% of new launches in the mid- and premium segments and 34% in the luxury category.
Despite the steep price increases, sales remain stable. According to the COO of Residential at Brigade Group, this stability can be attributed to steady interest rates and a robust economy. However, affordability remains a critical issue, particularly for first-time buyers. The absence of new affordable housing units in newly launched projects, such as those in Whitefield and Sarjapur, has intensified the challenge. In Whitefield, for example, 18,600 new units were launched this year, but no affordable options were introduced. In Sarjapur, out of 36,150 new units, only 8% were affordable. As a result, first-time buyers are increasingly looking at smaller properties or those located further from the city centre to manage costs.
Rental prices are also on the rise, having increased by approximately 5-8% over the past year. This trend is largely driven by heightened demand in desirable neighbourhoods close to work and amenities. The escalating costs of homeownership are making renting a more viable option for many. The outlook for Bengaluru’s real estate market remains positive, buoyed by ongoing infrastructure projects and a thriving IT sector. “We are only three years into what could be a seven to ten-year upcycle, with further price increases expected,” notes the Chairman of Concorde. Developing areas are poised to see continued growth, driven by improving connectivity and rising popularity.
