Northwest Bengaluru has won the race to dominate the Residential Sales

The price of residential properties  in the North West Bengaluru region witnessed certain hike including places like Malleshwaram, Rajajinagar and Peenya. These places are expected to grow at a higher rate, as compared to other parts of the city over the next five years, CRE Matrix shows.

The supply of the residential grew by 29% between 2022 and 2023, while demand surged by 64%, data showed. The data also shows that, North West Bengaluru saw a demand of 3,405 units and a residential supply of 2,012 units in CY2023, up from 2,639 and 1,221, respectively, in CY2022. 

On average, 2,500 units are sold annually in the region, contributing about 6% to the city’s total sales.

According to the demand-supply ratio (D/S Ratio), North West Bengaluru leads other macro-markets, such as North East (Devanahalli and Yelahanka) and South East (Whitefield outskirts). With a D/S Ratio of 1.7x, North West surpasses even the larger South and East markets.

A macro-market is a larger city or state segment defined by geographic demographics. In real estate, smaller hubs or micro-markets often follow the demand and price trends of these broader macro-markets.

The report shows that the housing prices have increased 31% to Rs.9,912 per sq ft in August 2024, from Rs.7,553 per sq ft in CY2023.

The report noted that prominent developers like Brigade, Phoenix, Prestige, Vaishnavi, Puravankara, and Sattva Group have established a presence in the North West region. With brands such as Godrej and Birla Estates entering the area, sales and pricing are expected to grow more rapidly compared to other parts of the city.

The report points out that Bengaluru’s inadequate public transport and the limited capacity of roads have caused severe congestion in the eastern IT corridor of Whitefield and the central commercial hub along the Outer Ring Road (ORR).

The report noted,"Based on the current contractual agreements, future rentals in North West are likely to remain above North and ORR average office rentals over the next six years. Contributing just 5%  to the under-construction office supply in the city, North West will see limited supply coming up for completion over the next five years. Prominent developers, such as DNR, Sattva Group, Brigade, Puravankara and Prestige, have lined up sizeable assets for buyers looking to expand or relocate in the city."

The CEO & Co-founder, CRE Matrix & Indextap.com Abhishek Kiran Gupta said, "Higher market rents, as compared to rentals in ORR and Whitefield, have ensured that Bengaluru remains a strong landlord’s market. However, with strong alternatives such as North West emerging, rentals are likely to reduce in the near future. With connectivity infrastructure and liveability conditions better than many other macro markets of the city, North West presents a rare opportunity to lap up office spaces to leverage the temporary rental arbitrage available today."