Bengaluru Real Estate Boom: Residential Prices Soar 57% in Five Years

A new report by ANAROCK reveals Bengaluru's residential property prices surged by 57% in five years. The city saw record office space demand and a significant rise in housing sales in H1 2024. A diversifying tenant base and thriving business ecosystem underscore the city's robust real estate market.

Residential property prices in Bengaluru have skyrocketed by 57 percent over the past five years, according to the 'Bengaluru's Real Estate - Your Gateway to Opportunity' report by ANAROCK. The first half of 2024 saw housing sales surpass new launches with approximately 34,100 units sold, marking an 11 percent increase compared to H1 2023.

The report highlighted a surge in office space demand that began in 2020 and reached historic highs, reinforcing Bengaluru's reputation as a business hub. Average office rentals saw annual growth of 4 percent to 8 percent across key markets. While the IT-ITeS sector's dominance slightly declined year-over-year, coworking space providers and manufacturing/industrial occupiers expanded their footprint by 3 percent and 2 percent, respectively.

This trend suggests a potential diversification of tenants and a maturing business ecosystem. Residential property prices have also risen, averaging Rs 7,800 per square foot in H1 2024, up from Rs 4,960 per square foot at the end of H1 2019. The inventory overhang dropped to a record low of 8 months by the end of H1 2024, down from 15 months in H2 2019, with available inventory decreasing by 11 percent compared to the first half of 2023. Around 32,500 units were launched in H1 2024, a 30 percent rise over the same period last year, with the premium segment leading new launches at 39 percent and the luxury segment close behind at 36 percent.

(With inputs from agencies.)