In a significant shift, the real estate landscape in south Bengaluru is experiencing a notable surge, signaling a catch-up to the soaring prices seen in the eastern IT corridor of Whitefield. Experts observe a 10-15 percent rise in property prices across areas like Kanakapura Road, Electronic City, Bannerghatta Road, JP Nagar, and BTM Layout since December 2023.
Sunil Singh, Director at Realty Corp, highlights the recent spike, attributing it to the saturation in the rental market in Whitefield. He notes that the relatively lower prices in south Bengaluru make it an attractive investment destination.
Kiran Kumar, Vice-President at Hanu Reddy Realty, underscores the promising returns on investment, projecting a potential RoI of 25-30 percent over the next five years. Ongoing infrastructural developments such as the Bengaluru-Mysuru Expressway and the southern metro corridor are further fueling land prices in the region.
Singh points out specific examples of the price appreciation, citing a substantial rise in rental rates in areas like BTM Layout and JP Nagar. Magic Bricks data indicates a 26 percent increase in rentals in the south compared to a 20 percent spike in the east over the last year.
Knight Frank India research highlights a 14 percent drop in unsold inventory in south Bengaluru, contrasting with a 66 percent increase in the east during the second half of the previous year. Despite the growth in south Bengaluru’s realty sector, experts predict that the east and north will continue to dominate due to ongoing developmental projects.
Singh emphasizes that while south Bengaluru offers affordable real estate options, areas like Whitefield in the east and those near the airport in the north will maintain their rapid growth trajectory until significant development occurs in the southern parts of the city.
