An advertisement at an apartment complex on Outer Ring Road near Sumanahalli Flyover, Vijayanagar in Bengaluru.
DH PHOTO/PUSHKAR V
Bengaluru: Residential demand growth in Bengaluru is expected to be flat in 2025. However, a growth is expected in commercial real estate, according to analysts who spoke to DH.
Micro-markets in the northern and eastern part of the city are set to become major residential and commercial areas, especially as the metro connectivity improves connectivity and due to the northern region’s proximity to the airport, they added.
These regions, along with some of the suburbs, are expected to see strong sales. Prices will remain steady while rentals in areas with new properties may be at a slight premium, as per analysts.
In this environment, “Developers are expected to introduce deferred payment plans to boost sales and sustain the price levels,” said Ravi Shankar Singh, Managing Director, Residential Transaction Services, Colliers India.
The Outer Ring Road, Whitefield, and Electronics City are some regions dominating commercial growth.
Analysts expect much of the development to shift to vertical growth, especially taller residential towers, though horizontal is also expected to continue.
“While outward expansion remains feasible for most major Indian cities presently, it is unlikely to be sustainable in the long term. Consequently, policymakers will need to formulate plans for managing vertical growth. Given land availability constraints, Bengaluru is also expected to embrace this vertical growth trajectory eventually,” explained Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East and Africa, CBRE.
E-khata woes
On the flip side, the e-khata system rollout by the Bruhat Bengaluru Mahanagara Palike (BBMP) continues to be a challenge in residential realty. It caused a dip in registered residential transactions in the city in 2024.
Anand Mohan, Head of Data Operations, Square Yards, said, ”The system has faced challenges, such as significant server delays that have hindered property registrations and led to a decline in activity at sub-registrar offices.” He expects the disruption to remain temporary.
Shantanu Mazumder, Executive Director, Bengaluru at Knight Frank, pointed out, “One challenge that developers are facing is on the timelines of approval. There is no check on authorities in terms of the timeline in which they complete their work such as approvals and infrastructure development works. This causes a lot of delay, especially in north Bengaluru where you need multiple approvals from various authorities. That needs to be taken care of.”
Despite challenges, there will be plenty of new supply, as per analysts.
For example, Shriram Properties has three to four projects coming up for launch in the city in the first half of 2025 and sees Bengaluru as a key growth market over the next three years.
K Raheja Corp has an ongoing residential project in Koramangala, while Sumadhura Group has two residential projects in north and east Bengaluru set to be completed by 2027.