As property prices rise in Bengaluru’s tech corridors, homebuyers turn to the city’s outskirts for affordable options

As real estate prices climb in Bengaluru’s tech hubs, more homebuyers are turning to affordable outskirts, despite the longer commute to work

As property prices in Bengaluru’s traditional tech hubs, such as Whitefield, Sarjapur Road, and the Outer Ring Road, continue to rise, demand is steadily shifting toward the city’s outer zones. Increasingly, homebuyers are exploring peripheral areas, such as North Bengaluru, Devanahalli, Hennur, and the Doddaballapur Main Road, drawn by more affordable prices and stronger long-term appreciation potential. Experts say improved infrastructure is adding to the appeal of these emerging micro-markets.

However, infrastructure challenges persist. Experts say that these homes are often located far from major employment hubs. Without robust public transport, commuting can be time-consuming and expensive.

Meanwhile, centrally located modern apartments continue to command premium prices, putting them out of reach for many budget-conscious buyers. As Bengaluru’s housing market evolves, some buyers are balancing affordability, amenities, and future value appreciation against convenience and proximity, thereby reshaping the city’s property landscape.

Over the past year, Bengaluru’s villa market, particularly in its fast-developing outskirts, has also seen a notable rise in both demand and prices, with villas priced between ₹2 crore and ₹3 crore emerging as the most popular segment.

“The last few years have seen several projects launched in the peripheries to meet demand,” said Santhosh Kumar, vice chairman of ANAROCK Group. “Inevitably, average housing prices rose there. With sufficient land available in the peripheries, developers have focused on these areas for large-scale projects. Improved connectivity has made it feasible for buyers to live in larger societies with generous green open spaces. This trend has become very prevalent after the COVID-19 pandemic.”

ANAROCK data showed that Devanahalli in North Bengaluru witnessed 49% price growth over the last six years, from ₹4,982 per sq. ft. in 2019 to ₹7,400 per sq. ft. in Q3 2024. By comparison, prime locations like Electronic City saw a 38% increase over the same period.

The peripheral area in the north, such as Devanahalli and the outskirts of Hebbal, recorded an increase in property values, driven by large-scale infrastructure projects and upcoming tech parks announced by the state government, experts said. “The property prices in the region are projected to rise further by 8-12% annually,” according to Amar Mysore, former president of CREDAI Bengaluru.

Outskirts offer affordability and investment potential
Real estate agents report a notable shift in buyer preference towards Bengaluru’s peripheries. “We’re seeing a 10–15% increase in queries for outskirts compared to the core tech corridors,” said Kiran Kumar of Hanu Reddy Realty.

In areas such as Devanahalli, Doddaballapur Main Road, and the outskirts of Whitefield, plots are priced between ₹4,000 and ₹ 5,000 per sq ft, while apartments in gated communities start at around ₹80 lakh. In North Bengaluru, Prestige has recently launched a project priced at ₹12,000 per sq ft, although other plots remain in the ₹6,000–7,000 per sq ft range. Apartments in northern zones typically begin at ₹1 crore, making these locations more accessible to budget-conscious buyers.

Experts also note that homes in the outskirts often appreciate more quickly than those in prime city areas. “Some outskirts locations are seeing 20% appreciation, while areas like Whitefield are closer to 15%,” Kumar said.

Modern living with trade-offs
While newer apartments in the outskirts come with contemporary amenities such as clubhouses, gyms, walking trails, and EV charging stations, there are trade-offs.

“New developments generally offer a more contemporary lifestyle,” said Vivek Rathi, National Director of Research at Knight Frank India. “They’re part of large gated communities with over 100 units, providing better long-term maintenance and community experience.”

However, Sopan Gupta, principal partner at Square Yards, cautioned that commuting and civic infrastructure remain challenges. “These homes are often far from major employment hubs. If public transportation is not yet in place, commuting can be time-consuming and costly. Social infrastructure and civic services are still catching up in many areas,” he said. Centrally located modern apartments, by contrast, remain in the premium segment, pricing them out of reach for budget-conscious buyers.

Outskirts are seeing major villa development
Over the past year, Bengaluru’s villa market, especially in its rapidly urbanising outskirts, has seen a sharp uptick in both demand and pricing. According to property analysts, villa prices in micro-markets such as Whitefield extension, Chikkagubbi, Yelahanka, and Hennur Road have surged by 10% to 15% year-on-year, outpacing the price appreciation in many mid-income city apartments.

“In North Bengaluru, luxury villas are now being sold at nothing less than ₹18,000 to ₹25,000 per square foot,” Rao said. “This premium pricing is driven by limited land supply, strong demand from end-users and NRIs, and the aspirational value attached to luxury villa living.”

In the East, Sarjapur Road remains a popular villa market. “Villas that were priced at ₹2 crore are already sold out. Newer projects are now starting at ₹3–4 crore,” said Kiran Kumar. Despite the infrastructure still being developed in these areas, some buyers are drawn to the privacy and lifestyle that villas offer, including private gardens, lawns, pools, and expansive clubhouses.