The Silicon Valley of India, Bangalore, has emerged as a bustling metropolis blending innovation and technology with lifestyle and culture. Investing in Bengaluru and its future is the right move to make right now. Along with a dynamic economy, a rapidly transforming IT industry, and robust infrastructure, the city is poised for exquisite real estate growth in the upcoming years.
As a matter of fact, during Quarter 4 of 2022 (October, November, and December), commercial rents in Bangalore witnessed an annual increase of 11%. Many investors are leveraging this projected growth. This article explores the upcoming growth trends in Bengaluru’s real estate sector and highlights potential secure investment opportunities for those looking to tap into the investing opportunities in Bengaluru.
Upcoming Growth Trends: Investing in Real Estate of Bengaluru
Bengaluru’s real estate market is witnessing tremendous growth, driven by a variety of factors like continuous infrastructure development, a growing start-up culture, and remote and flexible work models. As per the Asia-Pacific Outlook 2023, Bengaluru’s residential market is anticipated to exhibit a strong annual growth rate of 5%, positioning it as the second most promising market among the 24 markets being monitored. This information bodes well for individuals interested in investing in the Bengaluru real estate sector, encompassing both potential buyers and sellers.
Let’s take a look at the upcoming growth trends driving Bengaluru’s future with the potential for investing in it.
Sustainable and Green Buildings
One of the main trends driving the real estate market in Bengaluru is the increased demand for sustainable and green buildings. Now more than ever, people are becoming aware of the negative impact of construction. Therefore, developers must limit their carbon footprint. Developers and investors recognize the significance of energy efficiency, waste reduction, and eco-friendly construction practices. Green certifications such as LEED (Leadership in Energy and Environmental Design) will likely become more prevalent, attracting environmentally conscious buyers and tenants.
Increased Demand for Coworking Spaces
Today’s generation is not limited to the traditional form of office space. The demand for coworking spaces is also rising with the evolving work culture. In 2023, this trend is projected to gain further momentum. Startups, freelancers, and even established companies seek collaborative work environments that foster innovation and networking. As a result, investing in coworking spaces could prove to be a lucrative opportunity, providing a solution to the city’s changing professional landscape. Moreover, the pandemic accelerated the hybrid work model, further increasing the co-working space percentage from 14% to 27% in Quarter 1 of 2023.
Investing in the Corporate Housing of Bengaluru
As projected by a report from the consulting and advisory firm Meraqi, North Bangalore is anticipated to witness the creation of approximately 350,000 new job opportunities by 2025. This influx of jobs is expected to contribute to around 30% of the total office absorption in the same region. Consequently, this projection is expected to lead to a substantial surge in housing demand within the area by that time, necessitating a supply of more than 100,000 units by the year 2025. Coincidentally, prominent developers who are already engaged in the region have significant strategic initiatives for the city’s northern sector. These plans revolve around capitalizing on the area’s robust commercial potential and the anticipated improvements in connectivity.
Mixed-Use Development Properties
A mixed-use development property is a one-stop solution for all your needs. It is a combination of commercial, recreational, and residential spaces on a single property. These developments offer residents a holistic lifestyle by providing easy access to work, leisure, and daily necessities within the same vicinity. Investors eyeing growth opportunities can consider mixed-use projects that align with the city’s evolving urban fabric. This has been a rising trend in Bengaluru, and some of the popular mixed-use development properties are:
- Brigade Mixed-Use Development – Banahalli Village
- Prestige Meridian Park – Sarjapur
Technology-Infused and Smart Buildings
In Bengaluru’s real estate landscape, technology-infused and smart buildings are poised to redefine urban living. Interwoven with the city’s tech-savvy culture, these structures promise a future where residents experience seamless connectivity, energy efficiency, and enhanced security. From IoT-controlled lighting and climate systems to advanced security protocols and app-managed amenities, these buildings offer a glimpse into a lifestyle characterized by convenience and sustainability. With a focus on energy optimization and innovative features, these smart buildings not only cater to the evolving needs of residents but also position Bengaluru at the forefront of the global smart city movement.
In the heart of Bengaluru’s ever-evolving landscape, a symphony of growth trends is orchestrating the city’s future in real estate. As the city’s skyline expands, a harmonious blend of sustainable and green buildings, coworking spaces, corporate housing, mixed-use developments, and technology-infused smart buildings is set to redefine urban living. Both visionary and pragmatic investors have a unique chance to compose their success stories against this backdrop of transformation. Bengaluru, a canvas of innovation, culture, and opportunity, invites you to paint your commercial real estate investment journey with the vibrant colors of its promising real estate future.
Seize the chance; let your investment symphony resonate with the beat of Bengaluru and its crescendo. If you wish to learn more about the real estate investment landscape in Bengaluru or start your investment journey, head on over to the Bhive Alts website.