As India’s silicon valley and start-up capital, Bengaluru is one of the fastest growing cities in Asia and has long been a preferred destination for real estate investments in commercial, residential, and retail spaces. The city’s cosmopolitan culture, gamut of employment opportunities, young demographic, smart infrastructure, and favourable climate have allowed it to emerge as a favourite for IT, R&D, aerospace, pharmaceutical, and other allied sector companies. According to a report by Knight Frank, the Bengaluru residential market saw a 61% YoY jump in sales in 2021. The city ranked as the second largest market in the country, trailing only Mumbai, with housing sales of 38,030 units in the same year.
The epicentre of this growth has been north Bengaluru, the home of global investments and luxury lifestyles. The region recorded the fastest sales growth of 134% Y-o-Y during H2 2021.
Throughout the last decade, north Bengaluru has benefited from several massive infrastructure investments thanks to the Kempegowda International Airport at Devanahalli and its emergence as India’s first aerotropolis. In 2019, the airport drew up a Rs. 13,000 crore plan to further develop the airport with a new terminal, a second runway and expanded road access. The airport handled over 33 million passengers that year, representing a 4.1 percent increase over previous years. In addition to the upcoming Metro rail project, the area is well-connected to the main city and other states with access via expressways and major railway stations, along with several other connectivity projects in the pipeline. With the second phase of the metro expected to connect Hebbal, Nagawara, and Jakkur to the airport and MG Road, we can expect to see further growth in these areas.
North Bengaluru has also witnessed the development of large IT/SEZ and business parks in the vicinity, such as the software & hardware technology park, the Devanahalli Business Park and the Aerospace Park, which has added to its reputation as a prime homebuying hub. It is anticipated that the region will add another 3.5 lakh new jobs and will capture around 30% of the city’s overall office absorption by 2025. This commercial boom will also increase the residential catchment potential, with a requirement of over 1 lakh units by 2025.
As a result of the pandemic, there has been a massive consumer focus-shift to health, safety, and balanced living. Buyers are increasingly seeking properties with features that could be described as “experiential,” revealing a preference for homes that have access to amenities that enrich family life and lifestyle options. This, as well as the demand for larger spaces, a move away from renting to wanting to own a home, and growing interest in second or weekend homes, has added to the skyrocketing demand for properties with fresh air, gardens, private pools, and balconies with superlative views.
Able to cater to a global lifestyle with north Bengaluru’s social infrastructure, including the myriad of multi-speciality hospitals, international schools, malls, and shopping centres, developers have built a base for their luxury housing portfolio in the region. Against the scenic backdrop of Nandi Hills and nestled in the lush and tranquil lap of nature, it has drawn in modern homebuyers that desire prime locations, elevated luxury, and a return-on-investment. Tapping into the potential of the market, offerings span plotted developments, expansive villas, luxurious condominiums, fully-serviced homes, branded residences, and more.
With much of north Bengaluru still in the development phase, we anticipate that the property prices will appreciate as more buyers move to the region for jobs driven by the IT and other industries in the area. Buoyed by the government’s promotion of the region as the next prime business hub in the city and the sanctions to support the development of IT, business, and industrial parks, residential real estate is anticipated to see greater rates of return and liveability.
North Bengaluru is the hotbed of investment for not just seasoned investors but also first-time homebuyers and millennials who are looking for worthwhile long-term investments. Its excellent connectivity to the city and airport, future employment opportunities, and growth potential have added to its reputation as a game changer in Bengaluru’s real estate landscape.