Bengaluru Real Estate Market: Current Trends, Prices & Investment Opportunities

Bengaluru Real Estate Market Overview

Bengaluru's real estate market in 2025 is vibrant and growing across residential, commercial, and luxury segments, driven by strong economic fundamentals, infrastructure development, and rising demand from tech professionals and investors.

Current Property Prices and Location Insights

Residential Sector

Bengaluru dominates the mid to high-end segment with most properties priced in the INR 10-15 million range (~₹1–1.5 crore), constituting a leading share of sales in Q2 2025. Luxury properties priced above INR 30 million (~₹3 crore) are growing steadily, representing 10% of sales, up from 8% previously, reflecting robust demand for premium housing.

Price appreciation in the residential segment shows a quarter-on-quarter rise of 3.5% in capital values, with rents increasing by 0.9%, indicating sustained demand. Submarkets in the North, East, and South-East are witnessing steady appreciation, especially the North corridor which leads with 60% share of new launches.

Prime Locations and Price Ranges

• North Bengaluru (Whitefield, Sarjapur Road): ₹8,000-₹25,000 per sq ft, leading with 60% of new launches
• East Bengaluru (Marathahalli, Old Airport Road): ₹7,500-₹20,000 per sq ft, strong IT corridor presence
• South-East Bengaluru (Electronic City, HSR Layout): ₹6,500-₹18,000 per sq ft, affordable luxury options
• Central Bengaluru (Koramangala, Indiranagar): ₹12,000-₹35,000 per sq ft, premium established areas
• South Bengaluru (Jayanagar, JP Nagar): ₹8,000-₹22,000 per sq ft, mature residential zones

Commercial Sector

The office market is robust, particularly driven by IT-BPM, flexible workspaces, and engineering sectors. Gross leasing volume in Q2 2025 reached 5 million sq ft, with net absorption showing a strong 41% quarter-on-quarter growth. The Outer Ring Road submarket accounts for approximately 32% of leasing activity followed by Peripheral East.

Retail Market

Retail leasing volumes picked up with mall spaces leading at 89%, driven by fashion, entertainment, and food & beverage sectors. Q3 2025 leasing volumes increased by about 59% quarter-on-quarter, reflecting growing consumer activity in end-use retail spaces within Bengaluru.

Luxury Segment

High-end residential sales demonstrated a remarkable 25% quarterly growth, with new luxury launches comprising 51% of the Q3 2025 residential launches — slightly surpassing the mid-segment. Luxury buyers prefer gated communities with integrated amenities, advanced technology, and proximity to tech parks in prime locations such as Whitefield, Koramangala, and Central Bengaluru.

Market Trends

Shift Towards Premium and Luxury

The residential market shows a clear upscaling trend; properties priced above INR 10 million dominate sales at 62% for H1 2025. This upshift is driven by rising purchasing power among professionals and a preference for premium, well-planned living spaces with amenities matching global standards.

Moderation and Supply Dynamics

While new residential launches recorded a slight contraction of 3% year-over-year in H1 2025, Bengaluru bucked this trend with its semi-annual launches increasing 19%, the highest ever recorded. This surge is partly fueled by optimism about the festive season demand and infrastructure boosts. Excess inventory growth has slowed to just 2.7% annually, signaling improving absorption rates.

Robust Commercial Demand

The commercial segment remains a pillar with steady office space absorption, partly supported by Bengaluru's role as India's IT hub. The rise of flexible workspaces and emerging sectors like data centers is expanding the commercial real estate ecosystem.

Retail and Mixed-Use Developments

Increasing demand for experiential retail with a focus on malls and high streets complements residential and commercial growth. Developers integrate retail and living spaces in mixed-use projects, offering lifestyle convenience and diversified investment opportunities.

Investment Opportunities

Residential Investment

The mid to high-end residential market, particularly in the northern and eastern suburbs, offers attractive capital appreciation prospects due to strong infrastructure projects and connectivity enhancements. Luxury residential projects in gated communities appeal to HNIs and NRIs, with robust demand and growing resale values.

Commercial Real Estate

Investors can target core office assets in established IT corridors like Outer Ring Road and Whitefield, with consistent leasing demand. Opportunistic strategies focusing on redevelopment and value-add properties are gaining traction amid supply constraints of prime office buildings.

Emerging Asset Classes

Data centers, logistics hubs, and mixed-use developments blending residential and commercial components are becoming major focus areas aligned with Bengaluru's tech-driven economy and urban growth plans.

Future Outlook

Bengaluru's real estate market is poised for sustainable growth through 2025 and beyond, supported by:

• Continued economic expansion anchored by the IT and manufacturing sectors
• Infrastructure projects like Peripheral Ring Road, airport metro extension, and suburban rail enhancing accessibility
• Growing preference for premium and luxury residential properties among tech professionals
• Increasing investor interest in diversified asset classes, including built-up offices and redevelopment projects
• Expansion of tier-2 cities nearby, while Bengaluru maintains leadership in Karnataka's real estate

Market fundamentals remain strong, with controlled inflation and favorable interest rates expected to support steady price appreciation and demand stability. Developers and investors will likely emphasize compliance, sustainability, and technology integration in future developments, maintaining Bengaluru's position as one of India's most attractive real estate hubs.