Why Property Prices are Rising in Bangalore?
Bengaluru, often called the ‘Silicon Valley of India’ and the ‘Garden City’, has become a thriving real estate hub, witnessing a significant rise in property prices.
The city has experienced growth in various areas ranging from residential projects to commercial spaces. Let’s explore the key reasons behind the surge in property prices in Bangalore.
Booming IT and Commercial Sector
A huge factor in why Bengaluru’s real estate property value increases is the entrenchment of the core IT sector in its economy. The city has many international corporations, Global Capability Centres (GCCs), technology corporations and start-ups. As per the CBRE India Office Figures Q2 2024 report, the office leasing volumes surged by over 24% in the October — December 2023 period when compared to that of the previous year.
For the January-June 2024 period alone, from the first half of 2024, Bengaluru witnessed upwards of 8.5 million sq. ft. in office leasing. The arrival of massive amounts of technology and life sciences companies has driven both office and housing demand which results in increasing the property rates.
Surge in Residential Demand
The residential sector of the city has shown very aggressive patterns of growth during our research findings period. According to a report, the city has witnessed an increase in the residential price by about 57% over the last five years. As of H1 2024, the price per square foot reached ₹ 7,800 from ₹ 4,960 per square foot in H1 2019.
Such development can be attributed to the fact that there are investors and home buyers who are keen on acquiring houses. This rise is also due to the evolution of Bengaluru as a business and technology hub that attracts professionals from almost every corner of the country.
