North West Bengaluru, including areas like Malleshwaram, Rajajinagar, and Peenya, is emerging as a hotbed for residential real estate, with prices and sales expected to grow at a higher rate than other parts of the city over the next five years. According to a recent report by data analytical firm CRE Matrix, this region is poised to become a key player in Bengaluru’s real estate market, offering significant potential for homebuyers and investors.
Rising Demand and Limited Supply
The CRE Matrix report highlights a significant surge in both demand and supply in North West Bengaluru. Between 2022 and 2023, residential supply in the area grew by 29%, while demand skyrocketed by 64%. In 2023 alone, the region saw a demand for 3,405 units against a supply of 2,012 units, marking a considerable increase from the previous year.
Despite this growth, the demand-supply ratio (D/S Ratio) remains favorable, with a ratio of 1.7x, positioning North West Bengaluru ahead of other macro-markets like North East and South East Bengaluru. This strong demand is a clear indicator of the region’s rising appeal among homebuyers.
Price Appreciation and Market Trends
Housing prices in North West Bengaluru have seen a substantial increase, with rates rising by 31% to Rs 9,912 per sq ft in August 2024, up from Rs 7,553 per sq ft in 2023. Approximately 57% of the units sold in this region are priced below Rs 1 crore, making it an attractive option for middle-income buyers. However, the region is also witnessing growing interest in premium properties, with units priced above Rs 2 crore gaining traction.
Prominent developers such as Brigade, Phoenix, Prestige, Vaishnavi, Puravankara, and Sattva Group have already established a strong presence in the North West region. With major brands like Godrej and Birla Estates entering the market, the area is expected to see even faster growth in sales and pricing compared to other parts of Bengaluru.
Infrastructure and Connectivity
North West Bengaluru is benefiting from significant infrastructure developments, including the expansion of the metro network, which enhances connectivity with other parts of the city. This region, being one of the most densely populated macro-markets in Bengaluru, is perfectly positioned for growth, particularly with the ongoing infrastructure spending of around Rs 16,000 crore.
The report also points to the region’s potential to alleviate Bengaluru’s notorious congestion issues, particularly in areas like Outer Ring Road (ORR) and Whitefield. As North West Bengaluru continues to develop, it is likely to become a strong alternative for both residential and commercial real estate, offering more affordable options and better liveability conditions.
Conclusion
North West Bengaluru is on the cusp of becoming a major residential hub, with rapid growth in demand, rising property prices, and significant infrastructure developments. For homebuyers and investors looking to capitalize on Bengaluru’s booming real estate market, North West Bengaluru presents a promising opportunity that is expected to yield substantial returns in the coming years.
