Bengaluru’s real estate growth is driven by emerging micro-markets

Bengaluru’s real estate market is emerging as one of the rewarding places for both investors and buyers. Two of its micro markets, namely Thanisandra Main Road and Sarjapur Road, will deliver the highest capital and rental growth from the end of 2021 to Q2 2025.

Sarjapur Road, which is a prime zone near major IT hubs of East Bengaluru, has recorded a 79% increase in property prices. The average monthly rental amount for a 2BHK flat increased by 81%, and now it has reached Rs 38,000. The increase in prices is fuelled by the upcoming Red Line of the Namma Metro.

The metro will link Hebbal to Sarjapur, and this better metro access in the future will attract buyers. Also, the IT boom and limited land in the area result in increased prices.

Thanisandra Main Road, in the North zone of Bengaluru, has seen an 81% rise in prices. The rental amounts grew by 65% and the prices increased to ₹33,800 per month. As the area is near Manyata Tech Park, there is a steady demand from IT people who work in the nearby IT hubs.

Top notch Connectivity improves real estate growth

There are 14 high performing micro markets in major cities, and metro projects, or nearness to airports beat the rest. Noida’s Sector 150 topped with 139% capital growth. There was 71% rental growth, which was driven by the large township launch. Sarjapur Road recorded an 81% jump in prices, which is the highest in the country.

The real estate boom started after the pandemic, and it was driven by low interest rates and a changed focus on ownership. As there has been a price growth since 2023, real estate markets such as Bengaluru continue to resist the cooling trend.

The future of real estate in 2026 will also boom, and housing prices will grow by 6 to 7% annually.  Rents will increase by 7 to 10%. Investing in upcoming luxury projects like Prestige Evergreen in Bengaluru will yield high ROI over time. Micro markets tied to infrastructure finish, especially in the city's metro corridors, are placed in the best way to sustain above average gains.

The city’s IT sector is still booming, and new metro lines are nearing completion. Bengaluru will still remain a real estate magnet for both end-users and investors in the coming years.

Prestige Group prelaunch project is Prestige Evergreen.