Bengaluru residential prices rose by 57 per cent in the last five years, owing to soaring construction costs coupled with rising investor and buyer demand, according to a report released by property consultant ANAROCK.
In the first half of the year, Bengaluru’s housing market saw sales of approximately 34,100 units, surpassing new launches marking an 11 percent increase compared to the same period last year.
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The average prices in the city rose to ₹7,800 per sq. ft., up from ₹4,960 per sq. ft. in the corresponding period in 2019. In the second half of 2023 and 2024, Bengaluru experienced a significant year-on-year price surge of 32 per cent, climbing to ₹7,800 per sq ft from ₹5,900 per sq. ft.
“Increased new launches in Bengaluru’s premium and luxury segments in the first half of 2024 also contributed to the rise in average prices. Interestingly, out of the approximately 32,500 units of new supply in the city during the first half of 2024, nearly 75 per cent were in the premium and luxury segments combined”, said Prashant Thakur, Regional Director & Head of Research at ANAROCK Group.
North Bengaluru commands the highest average capital value of more than ₹7,000 per sq. ft. among the city’s four quadrants .
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The report also highlights Bengaluru’s surging office space demand since 2020 highlighting the city’s continued attractiveness and thriving business environment. Average office rentals across Bengaluru’s key markets last year witnessed yearly growth of 4 per cent to 8 per cent.
The report mentions the growing urban challenges, which include traffic congestion, water scarcity, air pollution, and waste management deficit.
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