Bengaluru's infrastructure boom shaping residential investment, creating new hotspots: Sanjeevini Group Chairman

Bengaluru's infrastructure boom is rewiring residential investment, creating new hotspots: Sanjeevini Group Chairman

Bengaluru’s burgeoning urban infrastructure, particularly its expanding metro network, is not just easing commutes but actively redrawing the map of residential investment across the city.

This transformation, coupled with a thriving IT and start-up ecosystem, has fuelled a significant surge in housing demand and prices, giving rise to new real estate hotspots. Bengaluru-based real estate developer Sanjeevini Group’s Chairman and Founder, Umesh Gowda HA in an interaction with Moneycontrol said the infrastructure boom has spawned new realty hubs like Gunjur, Varthur, Thanisandra, among others for both homebuyers and investors.

Edited excerpts:

What factors have driven the surge in housing prices in Bengaluru and which areas have emerged as prominent realty hubs in the city since 2020?

The ‘return to work’ concept implemented by corporates after the pandemic along with pent-up demand, increased homeownership sentiments, real estate as an asset class for investment, infrastructure upgrades among others have been driving Bengaluru’s property market. The city has positioned itself as a premier office destination supported by robust IT infrastructure, skilled workforce and an encouraging startup hub. As a result, the city recorded 77 percent growth in housing sales since 2020 with average launch prices rising to Rs 9740 per sq ft in 2024.

How do upcoming infrastructure projects like the Bengaluru Business Corridor and metro expansion impact attractiveness of areas like Gunjur, Bellandur etc for homebuyers and investors?

Gunjur has witnessed 2.5 times growth in housing prices since 2020 with prevailing average housing prices at Rs 11-12,000 per square feet. The large-scale infrastructure development like 45 metres CDP Road, which connects to the Outer Ring Road and Varthur–Sarjapur/Chennai Highway; and Peripheral Ring Road will be game-changers for the real estate market in Gunjur.

The area enjoys the geographical advantage as it is in close proximity of major office hubs including Whitefield, Brookefield and Bellandur. Its connectivity to Kempegowda International Airport has also transformed the market. As a result, the micro market has attracted top developers to meet the increasing housing demand.

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Which price segment is the dominant demand driver in Bengaluru, and which are the areas where such demand is being generating in bulk?

Bengaluru is largely a mid-income and premium market with close to 75 percent of the sales happening in Rs 50 lakh to Rs 2 crore price range, driven primarily by IT professionals. Areas like Whitefield, one of Bangalore’s most prominent IT hubs, Bagaluru and Thanisandra in North Bengaluru, Gunjur and Varthur in Eastern Bengaluru, and Bellary Road are some of the micro-markets that have attracted sustained demand for premium residential development owing to its proximity to IT hubs and have high rental potential.

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With substantial increase in new project launches (2020–24 vs. 2015–19) in Gunjur, how does supply align with absorption ratio?

The housing supply to absorption ratio in Gunjur remains healthy thereby reaffirming the micro-market’s acceptance for new launches. Owing to its accessibility to IT hubs like Whitefield, Brookefield and Bellandur; planned neighbourhoods with abundant greenery, lakes and natural tranquillity, seamless mix of convenience, connectivity and amenities make Gunjur extremely sought-after for people who wish to stay or make an investment for income generation.

How does the luxury housing market fare in Bengaluru in current scenario? Is Bangalore really challenging Mumbai and Delhi NCR as India’s new luxury housing hotspot?

The city is primarily an end-user driven market. There has been some spurt in luxury housing demand-supply scenario, however, the city lags far behind Delhi-NCR, Mumbai and even Hyderabad when it comes to luxury housing. Bengaluru saw close to 20 percent of the total launches and absorption in the luxury segment, priced Rs 2 crore and above in 2024 which in 2023 used to be around 13-15 percent. A recent market report suggests that 78 units priced Rs 10 crore and above was sold in Bengaluru in FY25. This was driven by start-up founders, CXOs, aspirational and discerning lifestyle seekers.