Are you considering investing in real estate and don’t know why investing in Bangalore’s real estate is the best decision? It’s not just about tech and traffic anymore—it’s also about the vibrant pulse of its real estate scene.
With the anticipated growth in the real estate market to reach a value of USD 40.94 Trillion by 2024, the demand for investing in this market is increasing. Bangalore is emerging as the focal point for this real estate upswing.
So, let’s deep dive into the dynamics of Bangalore’s real estate market trends.
Overview of Bangalore’s Real Estate Market
Over the past few years, Bangalore’s real estate market has continued to evolve and grow, reshaping the landscape of urban living. The city is divided into different micro markets that offer unique investment options, making it an excellent choice for investors.
Economic growth directly affects the demand for real estate, increasing the market value. As per one report, the year-on-year growth in Bangalore’s housing prices increased by 19% in the quarter falling January-March 2024, the highest price increase in the residential category among the other eight cities.
This makes it a lucrative investment choice, offering the possibility for both capital appreciation and rental income.
However, conducting thorough research and understanding the growing market trends and areas for better investment options is crucial.
Current Market Trends:
Due to ongoing developments, the city’s continuing attraction to professionals drives up demand for residential and business properties.
Keep reading to know in detail about current market trends driven by demand for innovation:
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Increasing Demand for Sustainability
In Bangalore’s real estate market, sustainable homes are in increasing demand. These residences are built to reduce the negative impact of construction on the environment.
Several developers include sustainable features in their projects to address the rising demand for green homes in the city.
According to a KPMG and Colliers analysis, green penetration of Grade-A office stock has been significant in metropolitan cities of India, including Bengaluru, Delhi-NCR, Hyderabad, Mumbai, Chennai, and Pune, accounting for 421 mn sq ft.
Builders are incorporating eco-friendly practices like rainwater harvesting, solar panels, and green spaces to meet this growing demand.
Currently, GRIHA (Green Rating for Integrated Habitat Assessment), a tool that can ‘grade’ a building based on its ‘greenness’, and LEED (Leadership in Energy and Environmental Design), the world’s widely used green building program set the industry standards as the top certifications in sustainable development.
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Co-living Rental Spaces for Professionals
Bangalore’s thriving IT sector attracts professionals from across the country as well as abroad. A significant trend in the real estate market is the purposeful development of properties specifically for co-living.
The rise of co-living spaces has created a breakthrough for service providers, significantly enhancing the quality of life for young professionals.
Innovative co-living operators are partnering with developers who have suitable rental housing inventories, which are expected to become increasingly popular in 2024.
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The Need for a Bigger, Better Home
Anarock’s “Consumer Sentiment Survey” reveals that despite rising residential prices, 48% of the property seekers are inclined to purchase 3 BHK homes, and 39% prefer 2 BHK homes. Where the demand is high in Bangalore, with 51%.
This trend is expected to persist, reshaping the real estate market in 2024 as individuals seek homes that balance comfort, functionality, and adaptability to evolving work environments.
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Technological Integration in Real Estate
The incorporation of technology is transforming Bangalore’s real estate market. From virtual property tours and digital transactions to smart home automation systems, technology is improving the homebuying experience while increasing developers’ operational efficiency.
An impressive 56% of luxury properties were launched in Q4 2023 with technological integration, setting a new standard in the world of housing with unique features.
So, Let’s look at how technology leads to transformation in Bangalore’s real estate:
- Smart buildings and IoT Integration allow for real-time monitoring of building systems.
- Virtual Reality (VR) and Augmented Reality (AR) alter how properties are shown and marketed in Bangalore.
- Automation helps speed up construction operations and increase productivity.
- Data Analytics and Predictive Modelling allow for real-time pricing optimization.
Regulatory Changes and Market Reforms
Different states in India have different regulations. The Real Estate Regulatory Authority (RERA) has brought greater transparency and accountability to the real estate sector.
Budget 2024 paves a transformative journey in Bangalore’s real estate sector. Furthermore, the new GST regime provides further impetus to homebuyers.
Investment Opportunities
Growing market trends open the door for better investment opportunities in terms of growth and return on investment.
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Rental Yields
Bangalore is an attractive place for real estate investors looking for an ongoing source of income due to the increased demand for rental properties.
According to the latest report from ANAROCK, the city’s rental yield was 4.45% in Q1 2024, a 24% growth since the COVID-19 Pandemic, which is attracting more investors.
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Rising Housing Demand
According to the Living Index Report for 2023, Bangalore ranked first in providing quality of life. This recognition validates the city’s commitment to offering an outstanding living environment, drawing more people to Bangalore, hence increasing housing demand.
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Emerging Micro-Market
As Bangalore’s real estate market evolves, certain areas emerge as standout investment opportunities. These micro markets are driven by robust infrastructure, commercial activity, and vibrant communities that offer exceptional growth potential.
Look at the top areas to invest in Bangalore’s real estate.
- Sarjapur Road: A Thriving Hub of Connectivity and Commerce
- Bellandur: Where Culture and Commerce Converge
- Jakkur: The Gateway to New Opportunities
- Attibele: Rising Star in South Bangalore
- Kadugodi: Affordable Living with Excellent Accessibility
- Yelahanka: Growing Amidst Aerospace and IT Corridors
- Yeshwanthpur: A Rising Investment Hub in North Bangalore
- KR Puram: A Suburban Haven of Affordability
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Investor Interest
As per Anarock, a 12% real estate price hike in 2024, the economic growth in infrastructure and transportation has heightened investor interest in Bangalore’s IT and manufacturing sectors.
Additionally, residential real estate investors are increasingly attracted to Bangalore’s real estate market. The city is drawing more migrants seeking job opportunities.
Bangalore, known for its strong IT sector, vibrant culture, and rising population, has emerged as a destination for modern living spaces, including Whitefield gated apartments, boasting an impressive 8.98% 10-year return on housing, reflecting a robust and lucrative market.
The increased demand for modern houses has spurred an increase in new residential projects and impending flats, driven by the city’s premier real estate developers. Real estate agents in Bangalore can help you find better investment opportunities.
Conclusion
The real estate outlook 2024 seems optimistic, with several favorable developments on the way. Despite projected swings, the market’s overall strength remains strong.
Demand for cheap housing is increasing, while luxurious living options remain popular. Additionally, there is an increasing trend of people looking for properties outside crowded urban centers.
Commercial and industrial real estate are also improving, with innovations such as smart buildings and more efficient warehouses increasing their appeal.
While the market might experience some ups and downs, it will remain dynamic, providing tremendous opportunities for investors. By thoroughly analyzing each factor, you can get the help of real estate agents in Bangalore and make informed decisions that align with your vision.