Bengaluru’s real estate market is poised for significant growth in 2025, with micro-markets emerging as key residential and commercial development hubs in the city’s northern and eastern regions. Enhanced metro connectivity and proximity to Kempegowda International Airport drive this trend, along with strong demand in the suburbs and established areas like Whitefield and Electronics City.

Residential sales are expected to remain robust, with developers introducing innovative payment plans to sustain price levels. “Developers are expected to introduce deferred payment plans to boost sales and sustain the price levels,” said Ravi Shankar Singh, Managing Director of Residential Transaction Services at Colliers India. Additionally, analysts noted that new properties are likely to command premium rentals.

The Shift Toward Vertical Growth

Bengaluru is anticipated to embrace vertical growth as a long-term solution to land availability constraints. While horizontal expansion remains feasible, policymakers increasingly focus on managing high-rise developments. “Given land availability constraints, Bengaluru is also expected to embrace this vertical growth trajectory eventually,” said Anshuman Magazine, Chairman & CEO of CBRE India. Developers like Shriram Properties and Sumadhura Group are already planning high-profile projects, with several launches slated for 2025 and beyond.

Challenges in Residential Realty

Despite the optimistic outlook, challenges persist. The rollout of the e-khata system by the Bruhat Bengaluru Mahanagara Palike (BBMP) has caused delays in property registrations, impacting residential transactions in 2024. “The system has faced challenges, such as significant server delays that have hindered property registrations,” said Anand Mohan, Head of Data Operations at Square Yards, adding that the disruption is expected to be temporary.

Approval delays remain another hurdle, particularly in north Bengaluru, where multiple authorisations from various agencies are required. “There is no check on authorities in terms of the timeline in which they complete their work,” said Shantanu Mazumder, Executive Director, Bengaluru at Knight Frank. This has slowed infrastructure development and project timelines in certain areas.

Commercial Real Estate on the Rise

The Outer Ring Road, Whitefield, and Electronics City dominate Bengaluru’s commercial real estate market, which is supported by strong demand from the IT and corporate sectors. Analysts predict sustained growth in these areas as metro expansion improves connectivity, further attracting businesses and residents.

Looking Ahead

Despite challenges, Bengaluru’s real estate market remains vibrant. Leading developers, including Shriram Properties, K Raheja Corp, and Sumadhura Group, are actively investing in the city, with several projects scheduled for launch in 2025. These developments, combined with metro connectivity and strategic urban planning, are expected to reinforce Bengaluru’s position as a real estate hotspot in the years ahead.