Old Bengaluru vs New Suburbs: Investing in Heritage Charm or Future Growth
As Bengaluru’s real estate market continues to expand, homebuyers must decide between the established charm of Old Bengaluru and the rapid development of new suburbs. Both options offer unique benefits and challenges.
Real Estate:As Bengaluru’s real estate market continues to grow, homebuyers are increasingly faced with a crucial decision—whether to invest in the well-established neighbourhoods of Old Bengaluru or the rapidly developing suburbs.nnAccording to real estate experts, both options have advantages and challenges. Older areas typically offer better infrastructure and proximity to the city centre. However, many of these neighbourhoods are saturated with ageing buildings.nnIn contrast, the newer suburbs are characterized by modern amenities and contemporary residential developments, appealing especially to younger buyers and families looking for a more updated lifestyle. As a result, we see most younger buyers or families choosing to live in these upcoming areas, drawn by the promise of growth and modern conveniences.nn Old Bengaluru: Preserving Charm and Heritage Amid the City's IT TransformationnnThe old parts of Bengaluru, often called ‘Old Bangalore,’ are neighborhoods that developed long before the city's IT boom. They preserve their traditional charm, historic landmarks, and older infrastructure.nnAccording to real estate experts, areas like Basavanagudi, Malleshwaram, and Chamarajpet are renowned for their tree-lined streets, heritage homes, historic temples, and bustling local markets. These neighbourhoods, which emerged well before the tech-driven transformation of the city, continue to reflect a community-oriented lifestyle.nnOther historic areas, such as Shivajinagar, Frazer Town, and Ulsoor, showcase Bengaluru’s colonial and multicultural heritage, marked by colonial-era architecture and narrow lanes. Meanwhile, neighbourhoods like Cooke Town and Richmond Town still feature quaint bungalows and a slower pace of life, offering a stark contrast to the city’s fast-paced, IT-centric developments.nn Bengaluru’s IT Boom: How Whitefield and Electronic City Transformed the City’s LandscapennIn contrast to Old Bengaluru's historic charm, the city’s IT boom has given rise to several modern and rapidly growing neighborhoods, particularly in the eastern and southeastern regions.nnOne of the most prominent areas is Whitefield, which evolved from a quiet settlement into a bustling commercial and residential hub following the establishment of major IT parks like ITPL.nnSimilarly, Electronic City in the south emerged as a key technology centre, housing major firms like Infosys and Wipro. This transformation spurred rapid residential and infrastructure development in nearby areas such as HSR Layout and Sarjapur Road, attracting a large influx of professionals and residents.nn“Areas along the Outer Ring Road (ORR) corridor—especially from Marathahalli to Bellandur—along with newer pockets like Kadubeesanahalli and Devarabeesanahalli, have experienced significant growth with emerging large tech parks and SEZs,” said Kiran Kumar, vice president at Hanu Reddy Realty. “In North Bengaluru too, localities like Hebbal, Thanisandra, and Yelahanka are developing rapidly, supported by better airport connectivity and ongoing infrastructure initiatives.”nn Bengaluru Real Estate: Prices in Traditional Hotspots and Emerging AreasnnAccording to real estate experts, land prices in traditional Bengaluru hotspots like Malleshwaram and Basavanagudi range between ₹28,000 to ₹30,000 per sq ft. Indiranagar remains one of the priciest areas, with land costs reaching ₹40,000 per sq ft, despite being fully developed.nnIn terms of apartments, prices in JP Nagar vary from ₹10,000 to ₹20,000 per sq ft, depending on the location. In Jayanagar, rates start at ₹20,000 per sq ft and go higher. Cooke Town and Frazer Town offer quality apartments from A-grade developers priced around ₹15,000 per sq ft. Upscale neighbourhoods like Defence Colonies and Sadashivanagar have apartment prices at approximately ₹25,000 per sq ft, while new apartments in Basavanagudi are selling for about ₹18,000 per sq ft.nnIn contrast, emerging areas in East and North Bengaluru—such as Whitefield, Hebbal, and Thanisandra—offer more diverse investment opportunities. In Whitefield, apartment prices range from ₹10,000 to ₹25,000 per sq ft, while Hebbal's prime road-facing properties command ₹18,000 to ₹20,000 per sq ft. Thanisandra, being more affordable, typically offers apartments priced below ₹15,000 per sq ft.nnIn Varthur, located in the southeast, apartment prices range from ₹80 lakh to ₹1 crore. Meanwhile, North Bengaluru offers relatively lower entry points, with apartments starting around ₹70 lakh. For plots, areas like Hennur have prices ranging from ₹80 lakh to ₹90 lakh for a 1,000 sq ft plot.nn Should You Invest in New Suburbs or Old Bengaluru?nn“Old localities like Malleshwaram, Basavanagudi, and Jayanagar are like antiques—timeless and priceless,” said Manjesh Rao, chief broker at BlueBroker. “These areas are well-developed with strong public infrastructure, including bus and metro connectivity, which makes them very liveable. However, being closer to the city centre, traffic congestion continues to remain a challenge in these areas.”nnOn the other hand, newer hubs like Sarjapur, despite being major IT corridors, still lack integrated transport and basic infrastructure in many parts. In most of the newer IT corridors like Hebbal and Electronic City, metro work is ongoing and last-mile connectivity continues to remain a challenge.nn“However, we’re seeing modern development in the newer suburbs—better road-laying technology called Tender S.U.R.E., skywalks, and planned layouts. For those seeking a cosmopolitan lifestyle, new Bengaluru makes more sense. For those attached to nostalgia or heritage, the older parts are still in demand, mostly for resale,” Rao said.nnHe also said that plot sizes in older areas like Malleshwaram tend to be larger, and restoring such homes offers a unique opportunity. “However, we see most younger buyers or families are choosing to live in upcoming areas. When it comes to modern amenities in projects located in Old Bengaluru, it depends on the scale—larger projects usually come with modern features, while smaller developments may not.”nnAdditionally, older parts of Bengaluru are better equipped to handle heavy rains, with their well-planned, decades-old drainage systems that help prevent flooding. In contrast, newer areas like Whitefield and Hebbal in the north often struggle with waterlogging during monsoons due to inadequate infrastructure, as witnessed across multiple incidents in 2022 and 2023.nnAccording to Kumar, newer areas in Bengaluru consistently witness fresh supply and capital appreciation of around 15–20%, while older parts of the city see annual appreciation rates of approximately 10–15%.nnFor those looking at long-term investment returns, Kumar advises focusing on newer neighbourhoods that offer a modern and cosmopolitan lifestyle. However, for end-use, particularly for those prioritising peace, greenery, and well-established infrastructure, Old Bengaluru remains unparalleled.nn“New Bangalore is where the growth is, but Old Bangalore is where the charm is still alive,” he remarked.
Frequently Asked Questions
What are the main advantages of investing in Old Bengaluru?
Old Bengaluru offers well-developed infrastructure, proximity to the city centre, and a strong sense of community. These areas are also known for their heritage and historic landmarks, making them timeless and unique investments.
What are the key benefits of investing in new suburbs?
New suburbs in Bengaluru provide modern amenities, contemporary residential developments, and a cosmopolitan lifestyle. They are often more affordable and offer significant capital appreciation potential due to rapid development and growth.
How do property prices compare between Old Bengaluru and new suburbs?
Property prices in Old Bengaluru are generally higher, ranging from ₹28,000 to ₹40,000 per sq ft in areas like Malleshwaram and Indiranagar. In contrast, new suburbs like Whitefield and Hebbal offer more affordable options, with prices ranging from ₹10,000 to ₹25,000 per sq ft.
What are the challenges of living in Old Bengaluru?
Living in Old Bengaluru can be challenging due to traffic congestion, limited new development, and ageing infrastructure. However, these areas are well-connected and offer a rich cultural and historical experience.
What are the challenges of living in new suburbs?
New suburbs often lack integrated transport and basic infrastructure, and some areas may face issues like waterlogging during monsoons. However, they are rapidly developing and offer modern amenities and a more updated lifestyle.
