Bengaluru Real Estate Thrives: IT Hubs and Metro Connect Boost Property Values
Bengaluru's real estate market is booming, particularly in areas like Sarjapur Road and Thanisandra Main Road, driven by IT expansion and improved metro connectivity. These micro-markets have seen significant capital and rental growth, making them attractive for investors and homeowners alike.
Real EstateBengaluruIt HubsMetro ConnectivityProperty PricesReal Estate NewsAug 30, 2025
Sarjapur Road, a key part of the city’s eastern IT corridor, recorded a 79% jump in property prices over the period. The average monthly rentals for a standard 2BHK rose a staggering 81%, reaching ₹38,000. This surge has been fueled by the upcoming Red Line Namma Metro linking Hebbal to Sarjapur, continued IT expansion, and limited land availability in the area.
Thanisandra Main Road, in North Bengaluru, matched Sarjapur’s capital gains with an 81% rise in prices, while rentals grew 65% to ₹33,800 per month. Proximity to Manyata Tech Park, improving road connectivity, and steady demand from IT professionals have kept the market buoyant.
The ANAROCK report highlights that across 14 high-performing micro-markets in major cities, those with strong infrastructure pipelines—metro projects, expressways, or proximity to airports—consistently outperformed the rest. Nationwide, Noida’s Sector-150 topped the charts with 139% capital appreciation and 71% rental growth, driven by large township developments and greenfield development. Bengaluru’s IT hubs, however, led on rental growth, with Sarjapur Road’s 81% jump being the highest in the country.
Anuj Puri, Chairman of ANAROCK Group, said the real estate boom that began post-pandemic was driven by pent-up demand, low interest rates, and a renewed focus on homeownership. While price growth has moderated since 2023, infrastructure-led markets like Bengaluru continue to defy the cooling trend. “Looking ahead to 2026, we expect housing prices to grow by 6–7% annually, with rentals rising 7–10%—both outpacing inflation,” Puri said. “Micro-markets tied to major infrastructure completions, especially Bengaluru’s metro corridors, are best placed to sustain above-average gains.”
With the city’s IT sector showing no signs of slowing and multiple metro lines nearing completion, its prime growth pockets look set to remain a magnet for both investors and end-users.
Frequently Asked Questions
What are the key factors driving property growth in Bengaluru?
The key factors driving property growth in Bengaluru include IT expansion, improved metro connectivity, and limited land availability in prime areas.
Which micro-markets in Bengaluru have seen the highest property and rental growth?
Sarjapur Road and Thanisandra Main Road have seen the highest property and rental growth, with both areas recording significant increases in both capital and rental values.
How is the upcoming Red Line Namma Metro impacting Sarjapur Road?
The upcoming Red Line Namma Metro is significantly boosting property values and rentals on Sarjapur Road by improving connectivity and making the area more attractive to IT professionals and investors.
What is the expected annual growth in housing prices and rentals in Bengaluru by 2026?
By 2026, ANAROCK Group expects housing prices to grow by 6–7% annually and rentals to rise by 7–10%, both outpacing inflation.
Why are micro-markets tied to major infrastructure projects outperforming others?
Micro-markets tied to major infrastructure projects, such as metro corridors and expressways, are outperforming others due to improved connectivity, increased demand, and better infrastructure, making these areas more attractive for both living and investment.
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