East Bengaluru's Luxury Real Estate Market Surges: What's Driving the 7% YoY Growth?
East Bengaluru has transformed into one of the fastest-appreciating real estate markets in 2024-2025. According to Cushman & Wakefield, areas like Whitefield, Sarjapur Road, and Bellandur have recorded average rental values ranging from Rs. 86,000 to Rs. 310,000 in Q3 2025, with a 6% year-over-year increase. These regions have become a preferred residential and investment hotspot, with a 1% quarter-over-quarter change in the high-end segment and a 2% change in the mid-segment, resulting in a 7% year-over-year growth in both segments.
Why Prices Are Surging in East Bengaluru
1. Massive Demand from IT & Tech Professionals The region's appeal is significantly bolstered by the presence of large IT and tech hubs. Embassy Group is developing major aerospace, finance, and IT hubs near the international airport and Devanahalli. Karnataka plans to build the Greater Bengaluru Innovation & Tech City (GBIT), a proposed AI-driven township at Bidadi, envisioned as a sustainable smart city. Embassy Tech Village, a significant tech park close to Bellandur, further cements the region's status as the IT capital of the city. Major tech companies like TCS, Accenture, IBM, and SAP have established large offices in these areas, attracting a substantial influx of IT professionals.
2. Infrastructure Connectivity and Urban Development Infrastructure improvements have played a crucial role in the region's growth. The Namma Metro's Purple Line extension to Whitefield (Kadugudi), the upcoming Blue Line from ORR to the KIA, and the Red Line connecting southeast Bangalore to the north (Sarjapur to Hebbal) are significant developments. The Parijata Line, part of the suburban corridor, will connect Kengeri to Whitefield. Additionally, flyovers like the one on the Old Madras Road and the Varthur Road Widening project, set to be completed by October 2025, will significantly reduce traffic congestion. The Peripheral Ring Road and Eastern Connectivity Tunnel will further reduce travel time to the airport.
3. Developers and Their Land Parcels Prominent developers are actively investing in the region, contributing to its real estate boom. Assetz Group has acquired 11.5 acres on Old Madras Road for a luxury project with over 800 units and a gross development value (GDV) of over Rs. 1,400 crore. Godrej Properties has secured 14 acres in Hoskote for a premium housing project with an estimated revenue of Rs. 1,500 crore. Birla Estate is developing Birla Evara, a 25-acre project on Sarjapur Road in Kodathi village. Sumadhura Group has acquired a 5-acre land parcel in East Bengaluru for a project with a target GDV of Rs. 500 crore. Brigade Group has announced a 20-acre project in Malur with a GDV of Rs. 175 crore. Prestige Group is also building several projects, including a 30+ acre development in Whitefield.
4. Change in Buyer Preference There has been a notable shift in buyer preferences in Bengaluru's real estate market. In Q3 2025, the city witnessed a 37% surge in demand for villaments, which offer the privacy of a villa with the convenience of an apartment. The average size of villaments in Bangalore ranges from 1,600 to 2,500 sq. ft., costing between Rs. 1.5 crore to 3 crore. New developments in East Bengaluru are equipped with modern amenities and high-quality construction, catering to the needs of modern homeowners.
5. Real Estate Market Momentum & Investor Confidence Bengaluru's real estate market has been booming over the past five years, with housing prices rising by approximately 79%. This growth is primarily driven by the city's thriving IT sector and the influx of professional residents. The consistent rise in property values, coupled with ongoing infrastructure upgrades and improved connectivity, has made East Bengaluru an attractive destination for both buyers and investors. The region is poised to deliver promising rental yields and property price appreciation in the future.
Final Thoughts East Bengaluru has evolved from a peripheral suburb to a mainstream residential and investment hotspot. The region's transformation is a result of high demand from the IT sector, significant infrastructure developments, and the appeal of high-end luxury segments and office spaces. For both buyers and investors, Bengaluru's real estate market remains one of the most dynamic and rewarding sectors to explore.
