Bengaluru is a globally renowned cosmopolitan city and home to the largest number of IT/ITeS companies including Infosys, Wipro, IBM, Microsoft, Google and many more. Demand for real estate in Bengaluru is driven by the IT/ ITeS sector, while the city also boasts of strong macroeconomic dynamics and stability. The high rate of growth is primarily due to the presence of global players in the IT, biotech, manufacturing, pharmaceutical, and other such growing sectors. A large job market combined with excellent infrastructure and temperate weather makes Bengaluru an attractive investment destination.
Bengaluru is among the top 10 cities in the Asia-Pacific region for cross border real estate investments. Given its reputation as a home for multinationals, Bengaluru has become the first Indian city to be ranked on the list of preferred investment destinations. Office properties hold the greatest interest for investors. This is followed by industrial and logistics-related properties, multi-family properties, hotels, and retail spaces.
In 2021, Bengaluru’s real estate demand is witnessing a positive shift. Despite the COVID-19 pandemic, property prices in Bengaluru have not witnessed significant long-term effects. In fact, Bengaluru’s property market witnessed a 45% increase in sales volume in October-December 2020 compared to the previous quarter.
One of the most important factors spurring real estate growth is the ballooning of manufacturing hubs, IT parks and SEZs across the city. These commercial centres have also seen the highest demand and appreciation for residential property. Due to stable realty market conditions, steady price rates and the absence of drastic fluctuations – the Bengaluru property market is viewed as an ideal destination for investment.
There are several locations in Bengaluru that are promising residential real estate investment destinations. These areas are located in close proximity to commercial hubs, parks, hospitals, schools, retail outlets and restaurants.
North Bengaluru is an attractive area for a real estate investor. This area is well connected via the Outer Ring Road. Property values in this area have more than doubled over the past few years due to its close proximity to Kempegowda International Airport, as well as the Central Business District. The real estate outlook in North Bengaluru is expected to get directly benefitted from Aerotropolis, IT and Aerospace parks. The growing monorail project and widening of roads will add to the infrastructure development mandate. The location is also a safe and serene residential option due to the defence establishments surrounding it. Areas including Hebbal and Devanahalli have an abundance of empty plots that are ready for development, making them lucrative investment options.
Yeshwantpur has gained much popularity due to its infrastructure development and connectivity to the rest of Bengaluru. The area itself is fast becoming a flourishing hub for educational institutes, hospitals and entertainment centres. Previously an industrial zone, this locality is rapidly upscaling to an affordable residential property option for investors. The entry price point is relatively lower, making it an attractive destination for long-term investors. The Peripheral Ring Road has led to better connectivity and reduced commute time.
KR Puram is located in the eastern part of Bengaluru. The location attracts investors given its strategic location. KR Puram acts as the centre of operations of the Bangalore-East taluk and also, houses many government offices along with 50-year old Indian Telephone Industries (ITI). Its proximity to the IT hubs of Whitefield and Manyata Tech Park further boost the demand for real estate in KR Puram with many premium gated community projects located in this area. Since this is an emerging area, the presence of major IT hubs and wide peripheral ring roads make it an excellent choice for investment.