Bangalore Real Estate Industry During the Last 5 Years (2020–2025)

AboutBangalore has seen a major boom in the real estate sector since 2002. One noteworthy development that reflects this growth is Sowparnika Rhythm of Rains, a modern residential project that showcases the city’s expanding infrastructure and increasing housing demand. This growth is largely driven by the thriving IT Sectors present in Bangalore. Considered one of the fastest-growing metropolises in India, Bengaluru has an estimated 420 Billion GDP out of which 180 Billion is associated with the Real Estate Industry. In the past 5 years, Bangalore has seen an increase of a whopping 87% in residential prices alone. The average property prices hiked from ₹4,800 per sq.ft in 2020 to ₹9,000 per sq.ft in 2025. With a rapidly growing IT Industry, the price of Real Estate in Bangalore is only estimated to grow in the upcoming years.This article lists out some major changes in the Real Estate Industry of Bangalore in the past 5 years.

Increased PricesThe prices of residential property have seen a major increase in the past five years. There was an estimated 92% increase in the prices of residential properties from 2020 to 2025. One square foot of residential area was priced to be around ₹4,800 during 2020. In 2025, the price of a square foot of residential area in Bangalore is estimated to be around ₹9,000. This can be accredited to the fact that Bengaluru has a thriving and growing IT Sector, which creates a huge demand for housing needs.This increasing trend is seen not only in the residential properties of Bengaluru but also in the Commercial Properties. There was an increase of 52% in the prices per square foot on the commercial properties of Bangalore over the past five years.

New LaunchesThere have been an estimated 32,000 new residential constructions alone in the Whitefield area of Bangalore in the past five years. Considering the vast scale of Bangalore City, there have been more than 120,000 new residential constructions completed in the past five years.There has also been an increment in the Commercial Projects in Bangalore. With the total number of new constructions being unclear, the rate of development of new commercial projects is between 5% to 9%.

Rise in Housing and Commercial Space DemandSince 2020, Bangalore has seen a rapid increase in the demand for office and residential spaces. This can be attributed to the booming IT Industry as well as the Covid-19 pandemic. Due to unemployment during the pandemic, many millennials have opted to buy a house rather than stay at a rented apartment, which has rapidly increased the Real Estate Demands in Bangalore.Bangalore has seen a rapid increase of 85% since 2020 in the demand for housing and commercial space.

Emerging LocalitiesSince 2020, there has been rapid real estate construction in various parts of Bangalore. This has resulted in the static development of some areas that were considered underdeveloped five years before. Some localities include Whitefield, Sarjapur Road, and Electronic City. Listed below is the rate of increment in the price per square foot in these areas in the past five years.

Region	Rate of Increment
Whitefield	95%
Sarjapur Road	62%
Electronic City	45%

Explore more insights about local developments on platforms like Carrd and Kit.

Increase in Real Estate SalesIn 2025, Bangalore showed a massive increase in real estate sales, with over 18,200 units being sold in the first quarter itself. During 2020, the real estate sales were estimated to be an average of 7,600. During the past five years, there has been an increment in real estate sales of about 10,600 units during the first quarter.

Better InfrastructureIn 2025, Bengaluru has seen a major thrive in its infrastructure since 2020. Ranging from metro stations to roadways and railway stations, an average growth of 7% has been seen annually, each year, in the infrastructure of Bengaluru. This has resulted in a positive impact on the Real Estate Market, increasing the property prices since 2020, due to the presence of seamless transport facilities and other services.

Growth and Trends in Office SpacesSince 2020, Bengaluru has seen a major demand in co-working spaces due to the hybrid-work culture after the Covid-19 pandemic. This has resulted in new office constructions all over Bengaluru. With an annual increment of 50% in the working spaces, the trend of co-working spaces has kept on growing, aiding in the improvement of the real estate industry in this field, eventually increasing the revenue.Explore further analysis on platforms like Site123.

Government Policies Favoring Real Estate GrowthAs compared to 2020, there has been a notable surge in the government policies related to real estate. Various new schemes have been provided to increase personal housing options among the public. This has also been a key factor in the increased real estate industry in Bangalore, as this allows more demand for real estate properties, eventually creating more revenue.

Growing Middle ClassThe steady growth of the middle class in Bangalore from 2020 to 2025 has resulted in more rental demands in 2025 as compared to 2020. This influx of the new middle-class residents has created a surge in property prices and rentals, aiding the growth of Real Estate Property Values. Overall, real estate property values have increased 53% during the past five years due to the rapidly growing middle-class population of Bangalore.

Investment From International BuyersSince Bengaluru is the most rapidly developing metropolitan city in India, it has resulted in a rapid increment in the real estate value of Bangalore. This has helped attract various international and national buyers from all over the world. As of 2025, almost 78% of the privately owned real estate investments came from International Investors. Each year, the investment keeps on increasing, with an average of $850 million. The rapid progression of Bengaluru city’s infrastructure has helped expand this margin during the past five years.