Central Bengaluru, with its historic charm, vibrant culture, and booming economy, continues to be one of the hottest real estate destinations in India. Known for areas like MG Road, Brigade Road, and Indiranagar, the heart of the city attracts interest from both commercial and residential investors with residential projects such as Shapoorji Pallonji Parkwest Binnypet and more.
This winter season of 2024, Central Bengaluru is witnessing distinctive trends in both sectors, shaped by changing work patterns, lifestyle preferences, and economic factors. Let’s explore what’s currently trending in both commercial and residential real estate in Central Bengaluru and why.
1. Demand for Premium Commercial Spaces
The commercial real estate market in Central Bengaluru has been historically robust, driven by the presence of tech hubs, corporate offices, and co-working spaces. This season, demand for premium commercial spaces is rising again, particularly in sectors like technology, finance, and co-working spaces.
- Shift to Hybrid Workspaces: Bengaluru has seen a growth of flexible workspaces as businesses adapt to hybrid work models. Co-working spaces in Central Bengaluru are particularly popular among startups, freelancers, and even larger enterprises looking for flexible leasing options.
- Statistical Trends: According to industry reports, up until November 2024, office space absorption in Bengaluru has grown by 30% in the first nine months of 2024, making it the leader among the top six cities (Source). This marks a significant improvement from the lows of the pandemic and indicates a strong recovery in commercial demand.
- Rising Rental Prices: The demand for commercial real estate has caused a rise in rental prices, especially in prime locations. Rent for Grade A office spaces in central areas grew above ₹90 per sq. ft. making it one of the highest in the city (Source).
2. Shift in Residential Preferences
In the residential sector, demand for properties in Central Bengaluru remains strong, but with a shift in buyer preferences. With remote work making commuting less of a priority, potential homeowners are increasingly looking for spacious apartments such as 3 BHK in Bengaluru and independent homes with lifestyle amenities.
- Preference for Spacious Apartments and Villas: Buyers now prefer larger apartments or villas in gated communities that provide amenities like gyms, parks, and co-working spaces. Areas like Binnypet have seen an uptick in demand for premium 3BHK and 4BHK apartments under reliable projects like Shapoorji Pallonji Parkwest.
- Demand from HNIs and NRIs: Many high-net-worth individuals (HNIs) and non-resident Indians (NRIs) are investing in Central Bengaluru, attracted by its high resale value and rental yield. Real estate reports show that NRI investments in premium properties have increased by 12% in 2024 (Source).
- Price Surge in Key Areas: Residential property prices in Bengaluru’s premium areas have risen significantly this season. In the July-September quarter (Q3 2024), prices grew by 10% year-on-year (YoY), marking the sharpest increase among the eight largest Indian cities as demand for premium homes surged (Source).
3. Technology as a Game-Changer in Both Sectors
Technology has played a significant role in shaping Bengaluru’s real estate market. From virtual property tours to real-time data analytics, technological advancements are enhancing the buying and leasing experience.
- Smart Homes in Residential Properties: The demand for smart homes is on the rise, especially among younger buyers and tech-savvy families. Features like automated lighting, remote-controlled appliances, and energy-efficient systems are now more common in high-end apartments and villas in Central Bengaluru like in Shapoorji Pallonji Parkwest.
- Tech Integration in Commercial Real Estate: In the commercial sector, tech-driven spaces that offer high-speed internet, IoT integrations, and video conferencing facilities are increasingly sought after. This has fueled demand for Grade A office spaces with state-of-the-art facilities, particularly in the central business district.
Also Read: Why are Young Professionals Choosing Binnypet?
The Best of Both Worlds
As Bengaluru evolves as a dynamic, tech-driven city, Central Bengaluru’s real estate market remains a hotspot for both residential and commercial sectors. This season, demand for spacious, amenity-rich homes and premium commercial spaces is growing, driven by lifestyle changes and a recovering economy. Whether for lifestyle or investment, Central Bengaluru offers robust opportunities, with both segments showing resilience and growth potential.