HNIs drive Bengaluru’s luxury real estate boom, backed by IT growth, start-up culture
Bengaluru’s thriving real estate market has witnessed a remarkable surge in investments by high-net-worth individuals (HNIs), driven by the city’s IT ecosystem, start-up culture, and robust infrastructure. A report by ANAROCK predicts India’s HNI population will double to 1.65 million by 2027, with real estate comprising 32 per cent of their portfolio investments. Reflecting this trend, luxury homes accounted for 28 per cent of total sales in 2024, compared to just 16 per cent before the pandemic.
The city’s residential market, once dominated by mid-segment homes priced between ₹40 lakh and ₹80 lakh, is experiencing a pronounced shift towards premium and luxury properties priced upwards of ₹80 lakh. In the first nine months of 2024, Bengaluru saw the launch of 10,785 luxury units, representing 41 per cent of the city’s new housing supply. Emerging hotspots such as Doddaballapur, Bagaluru, and Devanahalli are attracting HNI investments, alongside established areas like Sarjapur Road and Whitefield. Improved connectivity via the Outer Ring Road, metro projects, and proximity to IT hubs is cementing Bengaluru’s appeal as a luxury real estate destination.
This boom also stems from the city’s economic stability and policy measures. The unchanged policy repo rate of 6.5 per cent, combined with moderated inflation, has bolstered investor confidence. Rising disposable incomes and the volatility in global financial markets are prompting HNIs to view real estate as a reliable asset class. Young start-up founders and professionals are increasingly diversifying their portfolios with high-end residential properties, further driving demand.
From a sustainability perspective, Bengaluru’s luxury developments are incorporating eco-friendly designs and energy-efficient technologies. These green initiatives not only attract environmentally conscious investors but also align with global trends in sustainable urban living. As a leading IT hub, the city’s evolving real estate landscape underscores its potential to balance growth with sustainability, fostering a future-ready urban ecosystem.
