Bengaluru’s real estate market has seen a sharp rise in prices, making homeownership increasingly difficult for average buyers. Known for its IT ecosystem and urban lifestyle, the city is now facing a property affordability challenge. A key reason behind this upward trend is the growing interest from Non-Resident Indians (NRIs), which continues to influence demand patterns in the housing market.
The increase in property rates can be attributed to several interlinked factors. Urban expansion, increased migration of tech professionals, and consistent demand for mid-to-high-end housing options have led to rising prices, especially in areas such as Whitefield, Sarjapur Road, and North Bengaluru.
A less visible but equally significant trend is the growing participation of NRIs in the Indian housing sector. Post-pandemic shifts, along with a stronger dollar and flexible work models, have encouraged many NRIs to invest in real estate back home. For them, Indian cities — particularly Bengaluru — offer a mix of emotional value and strategic investment potential.
Property prices for a 3BHK unit in Bengaluru now range between ₹90 lakh and ₹2 crore, depending on the location. This is a substantial increase compared to previous years. Much of this demand comes from NRIs who often look for luxury apartments or villas either as rental investments or second homes.
Their preferences have influenced the kind of housing supply developers are focused on, shifting attention toward premium segments and reducing the availability of affordable options for local buyers.
The impact of NRI investments can be understood through three core patterns:
As a result, owning a home in Bengaluru is becoming harder for middle-class buyers. The competition from high-budget NRI buyers has widened the affordability gap in the city’s housing market.
Despite high prices, Bengaluru continues to attract interest due to its robust tech industry, job opportunities, and planned infrastructure development. For prospective buyers, this means the city remains an appealing location — but with a need for greater awareness.
Rather than focusing only on central locations, potential homeowners could explore emerging areas with better long-term value. Tracking housing trends and evaluating investment potential in underdeveloped pockets of the city can help navigate the evolving market.
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By Proptechbuzz
By Ravi Kumar
