Bengaluru’s luxury real estate market is experiencing significant growth, fueled by high-net-worth individuals (HNIs) who are driving demand in the premium property segment. This surge is closely linked to the city’s booming IT sector, thriving start-up ecosystem, and robust infrastructure development. As a result, luxury homes in well-connected areas are becoming highly sought after.
Rising demand for luxury homes
Traditionally dominated by mid-segment properties, Bengaluru’s real estate market is now witnessing a shift towards the luxury segment. Properties priced above ₹80 lakh have seen a remarkable rise in demand, with luxury homes now accounting for 28% of total property sales, up from 16% pre-pandemic. Priyanka Kapoor, Senior Vice President at ANAROCK, explains, “The residential market in Bengaluru is shifting towards premium and luxury segments, with homes priced from ₹80 lakh upwards.” In 2024 alone, 10,785 luxury units were launched, representing 41% of new supply in the city.
New hotspots in Bengaluru
While established luxury markets like Sarjapur Road, Whitefield, and Thanisandra Main Road continue to perform well, newer areas such as Doddaballapur, Bagaluru, and Devanahalli are quickly gaining popularity. These regions are benefitting from improved connectivity to Bengaluru’s IT corridors, thanks to the expanding metro network and Outer Ring Road. According to Kapoor, these emerging areas are seeing increased HNI investments, with several high-end projects, including villas, being launched by reputed developers.
Economic stability boosting investor confidence
2024’s stable economic conditions, including low interest rates and increasing disposable incomes, have further encouraged HNI investment in Bengaluru’s luxury real estate. Shveta Jain, Managing Director at Savills India, remarks, “The reliability of tangible assets, especially during uncertain times, has reinforced this trend.” With global financial market volatility, luxury properties in Bengaluru are increasingly viewed as safe, high-value investments.
As multinational companies expand their presence in Bengaluru, the demand for residential properties near business hubs is expected to continue rising, further solidifying the city’s position as one of India’s most attractive real estate markets.
Bengaluru’s luxury real estate poised for growth
Bengaluru’s luxury real estate market is poised for sustained growth, driven by economic stability, infrastructure development, and strong demand from HNIs. The city’s dynamic economy and expanding real estate offerings continue to make it a prime destination for both domestic and international investors.
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