Bengaluru's Rise as a Hub for Ultra-Luxury Real Estate: Following Mumbai Path

Bengaluru's Rise as a Hub for Ultra-Luxury Real Estate

In 2024, Bengaluru witnessed a surge in ultra-luxury real estate transactions, with several marquee deals crossing the ?50 crore mark. Known as the IT capital of India, the city has been steadily climbing the ranks to rival Mumbai, long celebrated as the epicenter of high-value property transactions. The shift signals Bengaluru’s growing appeal among high-net-worth individuals (HNIs), industrialists, and business moguls seeking upscale residential properties.

Key Highlights of Bengaluru’s Real Estate Boom

Record-Breaking Deals

• Ajit Isaac, Chairman of Quess Corp, made headlines in April with Bengaluru's most expensive deal: a ?67.5 crore purchase of a 10,000 sq ft property in Koramangala’s “Billionaire Street.” The price per square foot stood at a staggering ?70,300.
• Infosys founder NR Narayana Murthy invested ?50 crore in a second luxury apartment in Kingfisher Towers, a 16th-floor residence boasting 8,400 square feet, four bedrooms, and five parking spots.
• Landmark Developments

• Kingfisher Towers has emerged as an address of choice for elite business personalities, including Kiran Mazumdar Shaw and Sachin Bansal. The property has seen an appreciation of over 40% in the past four years, emphasizing its enduring value.
• Emerging Luxury Neighborhoods

• In Indiranagar’s Defence Colony, a house on an 8,800 sq ft land parcel fetched ?47.5 crore in August. Similarly, East Bengaluru's Adarsh Palm Retreat Villas saw a ?13.5 crore deal, reflecting a growing preference for gated communities.

What’s Driving the Demand?

1. Changing Aspirations Post-Pandemic The post-2022 era has marked a shift in buyer preferences, with affluent individuals prioritizing spacious, luxurious homes that align with their elevated lifestyle and aspirations.

2. Bengaluru’s Economic Growth The city continues to attract top talent, entrepreneurs, and business leaders, thanks to its robust IT ecosystem and expanding industries.

3. Attractive Rental Yields Bengaluru offers rental yields of 5%-7%, making it an appealing destination for long-term investments.

4. Climatic and Lifestyle Appeal Known for its pleasant climate and cosmopolitan culture, Bengaluru has become a top choice for individuals seeking a balanced lifestyle.

The Future of Ultra-Luxury Real Estate in Bengaluru

Bengaluru’s rise in the ultra-luxury real estate segment mirrors its transformation into a global city. With marquee transactions becoming the norm and neighborhoods like Koramangala, Indiranagar, and UB City redefining luxury living, the city is poised for sustained growth in this sector.

As Amar Mysore, President of CREDAI Bengaluru, aptly put it, 2023 marked a golden period for the real estate market. With 2024 continuing the trend, it’s evident that Bengaluru has firmly established itself as a prime destination for high-value real estate investments.

For HNIs and investors looking for steady returns, Bengaluru’s ultra-luxury market is more than a status symbol—it’s a lucrative opportunity.

What’s your take on Bengaluru’s luxury real estate growth? Share your thoughts!