Bengaluru's Real Estate Booms with 57% Price Increase in Five Years
Dr. Prashant Thakur, Regional Director & Head - Research, ANAROCK Group, stated, "Average residential prices in the city reached ₹7,800 per sq. ft. by the end of H1 2024, compared to ₹4,960 per sq. ft. at the end of H1 2019. Bengaluru saw the highest year-on-year increase of 32%, from ₹5,900 per sq. ft. by the end of H1 2023 to ₹7,800 per sq. ft. by the end of H1 2024."
Soaring construction costs and rising investor and buyer demand are driving prices up after a period of relative stagnation between structural reforms and the 2019 pandemic. Post-COVID-19 demand and increasing construction costs have led developers to hike prices.
"Increased new launches in Bengaluru's premium and luxury segments in H1 2024 also contributed to the rise in average prices," added Dr. Thakur. "Notably, out of the total new supply of approximately 32,500 units in H1 2024, nearly 75% were in the premium and luxury segments."
Among the city's regions, North Bengaluru commands the highest average capital value, exceeding ₹7,000 per sq. ft., leading the city's four quadrants (East, West, North, and South).