Bengaluru Real Estate Trends 2025: Key Areas for Rental Appreciation
With demand on the rise again, experts predict major rental appreciation in Bengaluru's outskirts, particularly in North Bengaluru and the eastern IT corridor of Whitefield. Sunil Singh, director of Realty Corps, shares insights on the areas likely to see
Bengaluru Real EstateRental AppreciationWhitefieldNorth BengaluruProperty InvestmentReal Estate NewsJan 04, 2025
Tenants in this city, which has a chronic shortage of rental properties, have been struggling to keep up with the ever-increasing demands of landlords.
Some landlords even went as far as checking LinkedIn profiles of potential tenants to assess their financial stability and professional credibility.
However, towards the end of 2024, the residential sector in Bengaluru saw a period of stagnation, with landlords reducing rents by 5% to 10% in city centers.
Industry experts attribute this stability to a reduced gap between supply and demand.
Several areas, like Electronic City and the eastern IT corridor of Whitefield, saw a major influx of new residential units in the second half of 2024, which helped balance the market.
Sunil Singh, director of Realty Corps, stated, “Several places in the city, like Electronic City and the eastern IT corridor of Whitefield, saw a major supply of inventories in the last half of 2024, reducing the gap between demand and supply.
However, with demand picking up again, we expect major rental appreciation in 2025.”
Outskirts of Whitefield and SarjapuraRentals in the prime areas of Whitefield and Sarjapura have seen a significant surge of nearly 20-25% over the past two years, primarily due to the influx of tech professionals.
This surge has led to a shift from the IT corridor to the outskirts, where homes remain more affordable.
Areas like Glenwood Layout and Varthur Road remain in high demand due to their proximity to the IT corridor.
“The outskirts of Whitefield typically have a monthly rent of ₹25,000 for a 2BHK with a 6-9 month deposit.
Additionally, a 2BHK on the outskirts of Sarjapura Road is being rented out for ₹20,000.
We expect these areas to appreciate by 10%-20% in 2025,” Singh added.
However, Whitefield has faced challenges such as water shortages and traffic bottlenecks.
The recently started Namma Metro has helped alleviate some of these issues, but they remain significant concerns.
North BengaluruNorth Bengaluru, once primarily an industrial area, has seen significant development over the past two decades, thanks to the construction of the Bengaluru International Airport and the Manyata Tech Park.
This development has led to the growth of several micro-markets, including Hebbal, Yelahanka, and Thanisandra Main Road.
Areas like Devanahalli and Bagalur, close to the international airport, and Nelamangala in the northwest are expected to see major rental appreciation due to their proximity to the northern IT corridor and the airport.
Companies like Amazon India and Foxconn have relocated or are acquiring land in these areas, driving real estate demand.
“A 2BHK in these areas is being rented out for ₹35,000-38,000 monthly.
We see north Bengaluru growing faster than several prime areas in the city.
And we anticipate easily 20-25 percent rental appreciation in 2025,” Singh noted.
However, infrastructure challenges and flooding continue to plague north Bengaluru.
The area witnessed major flooding in August 2022, but the upcoming Bengaluru metro red line linking Sarjapur to Hebbal, scheduled for operation in 2031, is expected to be a game changer for infrastructure issues.
Other Key AreasOther prime areas like Koramangala, Indiranagar, and HSR Layout are expected to continue to see rental appreciation, driven by their mid-high and luxury inventory.
However, limited inventory availability in these areas continues to push up real estate prices.
“Places like KR Puram are seeing a resurgence in demand due to the establishment of factories in nearby areas like Hoskote and Narsapura.
A 2BHK in these areas now commands ₹25,000-28,000 of monthly rent, up from ₹22,000-24,000 six months ago,” Singh explained.
South Bengaluru's Kanakapura Road is another area witnessing significant demand.
The real estate prices here are relatively cheaper compared to other parts of the city, making it an attractive investment.
The ongoing infrastructure projects, including the conversion of Kanakapura Road into a four-lane highway and the development of NICE Road and Mysuru Road, are significant incentives for investors.
Frequently Asked Questions
Why are rentals in Whitefield and Sarjapura expected to appreciate in 2025?
Rentals in Whitefield and Sarjapura are expected to appreciate due to their proximity to the IT corridor and the demand from tech professionals. The outskirts of these areas, which offer more affordable options, are also seeing increased interest.
What are the main challenges in the Whitefield area?
The main challenges in the Whitefield area include water shortages and traffic bottlenecks. These issues stem from unplanned real estate development and the infrastructural boom. However, the recently started Namma Metro has helped alleviate some of these problems.
What is driving the rental appreciation in North Bengaluru?
North Bengaluru is seeing rental appreciation due to the development of several micro-markets, the construction of the Bengaluru International Airport, and the relocation of major companies like Amazon India and Foxconn to the area. These factors are driving significant real estate demand.
What infrastructure projects are expected to boost the real estate market in Kanakapura Road?
Several infrastructure projects are boosting the real estate market in Kanakapura Road, including the conversion of the road into a four-lane highway, the development of NICE Road, and the Mysuru Road, which connect the area to key locations.
Why are areas like Koramangala, Indiranagar, and HSR Layout expected to continue to see rental appreciation?
Areas like Koramangala, Indiranagar, and HSR Layout are expected to continue seeing rental appreciation due to their high demand for mid-high and luxury inventories. However, limited inventory availability in these areas continues to drive up real estate prices.
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