Bengaluru real estate booms: Prices surge 57% in 5 years
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Bengaluru, India’s dynamic metropolis known as the ‘Silicon Valley’ and ‘Garden City’, has emerged as a prime hub for residential and commercial real estate opportunities. According to the ANAROCK report titled ‘Bengaluru’s Real Estate - Your Gateway to Opportunity’, the city has seen a remarkable increase in average residential prices , rising by 57% over the last five years.
Dr Prashant Thakur, Regional Director & Head of Research at ANAROCK Group, noted, “Average residential prices in Bengaluru reached INR 7,800 per sq. ft. by H1 2024-end, up from INR 4,960 per sq. ft. in H1 2019-end. Notably, there was a substantial year-on-year increase of 32%, rising from INR 5,900 per sq. ft. in H1 2023 to INR 7,800 per sq. ft. in H1 2024.”
Driven by escalating construction costs and escalating demand from investors and buyers, prices have rebounded after a period of relative stagnation between structural reforms and the 2019 pandemic. Post-COVID-19, heightened demand and increased construction expenses have prompted developers to raise prices.
Dr Thakur added, “The surge in new launches within Bengaluru’s premium and luxury segments in H1 2024 further contributed to the rise in average prices. Approximately 75% of the new supply totalling around 32,500 units in H1 2024 was concentrated in these upscale segments.”
North Bengaluru leads with the highest average capital value exceeding INR 7,000 per sq. ft. among the city’s quadrants (East, West, North, and South).
The report notes Bengaluru’s strong office space demand since 2020, reaching record levels and highlighting its enduring appeal and vibrant business environment. Average office rentals in key Bengaluru markets saw annual growth between 4% and 8% last year.
Despite positive trends, Bengaluru grapples with urban challenges like traffic, water scarcity, air pollution, waste management deficits, and flooding due to urban sprawl. Mitigation efforts include ongoing projects like MMLP, BSRP, Namma Metro Phases 2 and 3, Bengaluru Satellite Ring Road, expressways, airport city development, and connectivity corridors to alleviate these pressures.
Looking forward to 2024, Bengaluru expects a 10-15% rise in residential launches and sales compared to 2023, with average property values set to increase by 10% citywide. Prime locations and tech corridors may experience higher growth rates.
Bengaluru sees 24% Y-o-Y surge inoffice leasing
Bengaluru saw a 24% year-on-year rise in office leasing, reaching 8.5 million sq. ft. during the first half of 2024. The ‘CBRE India Office Figures Q2 2024’ report noted tech firms, flexible space operators, and life sciences companies dominated quarterly absorption from April to June 2024. Global Capability Centers (GCCs) accounted for 55% of the quarterly absorption.
CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, unveiled these findings today. According to the report, Bengaluru’s office space leasing reached 8.5 million sq. ft. in the first half of 2024, up from 6.9 million sq. ft. in the same period of 2023. The supply of office space stood at 7.7 million sq. ft. during January to June 2024.
In the second quarter of 2024, leasing activity reached 4.0 million sq. ft. with supply at 3.8 million sq. ft. Key transactions included Syngene leasing 213,900 sq. ft. at Bengaluru Lifesciences Park, MathCo leasing 212,000 sq. ft. at HPE IWF Campus – Tower B, and Atlassian leasing 200,000 sq. ft. at DivyaSree Greens – I.
Nationwide, office leasing stayed strong, totalling 32.8 million sq. ft. in H1 2024, a 14% YoY increase across nine major cities. Bengaluru led with approximately 25% of the leasing, followed by Delhi-NCR at 16%, Chennai at 14%, and Pune and Hyderabad at 13%.
Dr Prashant Thakur, Regional Director & Head of Research at ANAROCK Group, noted, “Average residential prices in Bengaluru reached INR 7,800 per sq. ft. by H1 2024-end, up from INR 4,960 per sq. ft. in H1 2019-end. Notably, there was a substantial year-on-year increase of 32%, rising from INR 5,900 per sq. ft. in H1 2023 to INR 7,800 per sq. ft. in H1 2024.”
Driven by escalating construction costs and escalating demand from investors and buyers, prices have rebounded after a period of relative stagnation between structural reforms and the 2019 pandemic. Post-COVID-19, heightened demand and increased construction expenses have prompted developers to raise prices.
Dr Thakur added, “The surge in new launches within Bengaluru’s premium and luxury segments in H1 2024 further contributed to the rise in average prices. Approximately 75% of the new supply totalling around 32,500 units in H1 2024 was concentrated in these upscale segments.”
North Bengaluru leads with the highest average capital value exceeding INR 7,000 per sq. ft. among the city’s quadrants (East, West, North, and South).
The report notes Bengaluru’s strong office space demand since 2020, reaching record levels and highlighting its enduring appeal and vibrant business environment. Average office rentals in key Bengaluru markets saw annual growth between 4% and 8% last year.
Despite positive trends, Bengaluru grapples with urban challenges like traffic, water scarcity, air pollution, waste management deficits, and flooding due to urban sprawl. Mitigation efforts include ongoing projects like MMLP, BSRP, Namma Metro Phases 2 and 3, Bengaluru Satellite Ring Road, expressways, airport city development, and connectivity corridors to alleviate these pressures.
Looking forward to 2024, Bengaluru expects a 10-15% rise in residential launches and sales compared to 2023, with average property values set to increase by 10% citywide. Prime locations and tech corridors may experience higher growth rates.
Bengaluru sees 24% Y-o-Y surge in
Bengaluru saw a 24% year-on-year rise in office leasing, reaching 8.5 million sq. ft. during the first half of 2024. The ‘CBRE India Office Figures Q2 2024’ report noted tech firms, flexible space operators, and life sciences companies dominated quarterly absorption from April to June 2024. Global Capability Centers (GCCs) accounted for 55% of the quarterly absorption.
CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, unveiled these findings today. According to the report, Bengaluru’s office space leasing reached 8.5 million sq. ft. in the first half of 2024, up from 6.9 million sq. ft. in the same period of 2023. The supply of office space stood at 7.7 million sq. ft. during January to June 2024.
In the second quarter of 2024, leasing activity reached 4.0 million sq. ft. with supply at 3.8 million sq. ft. Key transactions included Syngene leasing 213,900 sq. ft. at Bengaluru Lifesciences Park, MathCo leasing 212,000 sq. ft. at HPE IWF Campus – Tower B, and Atlassian leasing 200,000 sq. ft. at DivyaSree Greens – I.
Nationwide, office leasing stayed strong, totalling 32.8 million sq. ft. in H1 2024, a 14% YoY increase across nine major cities. Bengaluru led with approximately 25% of the leasing, followed by Delhi-NCR at 16%, Chennai at 14%, and Pune and Hyderabad at 13%.
