Bangalore Real Estate Industry During the Last 5 Years

About

Bangalore has seen a major boom in the Real Estate Industry since 2002. This is majorly because of the thriving IT Sectors present in Bangalore. Considered one of the fastest growing metropolises in India, Bengaluru has an estimated $359.9 Billion GDP, out of which $150 Billion is associated with the Real Estate Industry. In the past 5 years, Bangalore has seen an increase of a whopping 94% increase in the residential prices alone. The average property prices hiked from Rs. 4,300 per sqft in 2019 to Rs. 8,151 per sqft in 2024. With a rapidly growing IT Industry, the price of Real Estate in Bangalore is only estimated to grow in the upcoming years.

This article lists out some major changes in the Real Estate Industry of Bangalore in the past 5 years.

Increased Prices

The prices of residential property have seen a major increase in the past five years. There was an estimated 90% increase in the prices of residential properties from 2019 to 2024. One square feet of residential area was priced to be around Rs. 4,300 during 2019. In 2024, the price of a square feet of residential area in Bangalore is estimated to be around Rs. 8,151. This can be accredited to the fact that Bengaluru has a thriving and growing IT Sector, which creates a huge demand for housing needs.

This increasing trend is seen not only in the residential properties of Bengaluru, but also on the Commercial Properties. There was an increase of 49% in the prices per square feet on the Commercial Properties of Bangalore in one year alone.

New Launches

There have been an estimated 28,500 new residential constructions alone in the Whitefield area of Bangalore in the past five years. Considering the vast scale of Bangalore City, there has been more than 100,000 new residential constructions completed in the past five years.

There has also been an increment in the Commercial Projects in Bangalore. With the total number of new constructions being unclear, the rate of development of new commercial projects is between 4% to 8%.

Rise in Housing and Commercial Space Demand

Since 2019, Bangalore has seen a rapid increase in the demand of office and residential spaces. This can be attributed to the booming IT Industry as well as the Covid-19 pandemic. Due to unemployment during the pandemic, many millennials have opted to buy a house rather than stay at a rented apartment, which has rapidly increased the Real Estate demands in Bangalore.

Bangalore has seen a rapid increase of 80% since 2019 in the demand of Housing and Commercial Space.

Emerging Localities

Since 2019, there has been rapid real estate constructions in various parts of Bangalore. This has resulted in the static development of some areas which were considered underdeveloped five years before. Some localities include Whitefield, Sarjapur Road and Electronic City. Listed below is the rate of increment in the price per square foot in these areas in the past five years.

Region	Rate of Increment
Whitefield	90%
Sarjapur	58%
Electronic City	38.4%

Increase in Real Estate Sales

In 2024, Bangalore showed a massive increase in the real estate sales; with over 16,995 units being sold in the first quarter itself. During 2019, the real estate sales were estimated to be an average of 7,582. During the past five years, there has been an increment in real estate sales of about 9,413 units, during the first quarter.

Better Infrastructure

In 2024, Bengaluru has seen a major thrive in its infrastructure since 2019. Ranging from Metro stations to Roadways and Railway Stations, an average growth of 8% has been seen annually, each year, in the Infrastructure of Bengaluru. This has resulted in a positive impact on the Real Estate Industry, increasing the property prices since 2019, due to the presence of seamless transport facilities and other services.

Growth and Trends in Office Spaces

Since 2019, Bengaluru has seen a major demand in co-working spaces due to the Hybrid-Work culture, after the Covid-19 Pandemic. This has resulted in new office constructions all over Bengaluru. With an annual increment of 44% in the working spaces, the trend of co-working spaces has kept on growing, aiding in the improvement of the Real Estate Industry in this field, eventually increasing the revenue.

Government Policies Favoring Real Estate Growth

As compared to 2019, there has been a notable surge in the Government Policies related to Real Estate. Various new schemes have been provided, in order to increase personal housing options amongst the public. This has also been a key factor in the increased real estate industry in Bangalore, as this allows more demand of real estate properties, eventually creating more revenue.

Growing Middle Class

The steady growth of the middle class in Bangalore since 2019 to 2024 has resulted in more rental demands in 2024 as compared to 2019. This influx of the new middle class residents has creates a surge in property prices and rentals, aiding to the growth of real estate property values. Overall, the real estate property values has increased 48% during the past five year due to the rapid growing middle class population of Bangalore.

Investment From International Buyers

Since Bengaluru is the most rapidly developing metropolitan city of India, it has resulted in a rapid increment in the real estate value of Bangalore. This has helped attract various international and national buyers from all over the world. As of 2024, almost three-fourths of the privately owned real estate investments came from international investors. Each year, the investment keeps on increasing, with an average of $612 million. The rapid progression of Bengaluru city’s infrastructure has helped expand this margin during the past five years.