Residential demand in Bengaluru is projected to remain steady in 2025, with notable growth anticipated in commercial real estate, according to market analysts. Northern and eastern micro-markets are expected to thrive due to improved metro connectivity and proximity to Kempegowda International Airport. These areas, along with suburbs, are likely to witness strong sales, with prices holding steady and rentals in new developments commanding slight premiums.
“Deferred payment plans by developers may help boost residential sales and stabilize prices,” stated Ravi Shankar Singh, MD of Colliers India.
Vertical Expansion on the Rise
With land availability becoming constrained, Bengaluru is poised to adopt vertical growth in residential projects. High-rise towers are expected to dominate, particularly in established commercial hubs like Outer Ring Road, Whitefield, and Electronics City. Anshuman Magazine of CBRE emphasized the need for policymakers to manage this vertical expansion effectively.
Challenges in the Realty Sector
The e-khata system rollout by BBMP remains a bottleneck, causing server delays and reduced property registrations in 2024. Analysts expect this disruption to be temporary. Additionally, developers face approval delays, particularly in north Bengaluru, where multiple clearances from various authorities are required.
Promising New Projects
Despite challenges, new supply is on the horizon. Developers like Shriram Properties, K Raheja Corp, and Sumadhura Group are launching multiple residential projects in Bengaluru. These launches reaffirm the city’s importance as a key growth market in the coming years.
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