Bengaluru’s Property Market: A Comparative Analysis with London and New York
Bengaluru is known as the "Silicon Valley of India." The city grows fast and draws skilled workers. Its IT hub and urban spread push more people, including many NRIs, to invest here. This paper shows how Bengaluru’s property market compares to London and New York. We look at prices, trends, and investment chances.
Rising Property Prices in Bengaluru
Bengaluru’s property prices move up quickly. In its suburbs, a three-bedroom apartment now costs between ₹2 crore and ₹2.5 crore (around £240,000 to £300,000 or $300,000 to $375,000). In London, apartments in places like Croydon start around £250,000. In New York, similar homes start from $300,000 to $400,000. In 2024, Bengaluru’s average home cost was ₹8,151 per square foot. In London, it ranged from £700 to £1,000 per square foot (about $9,000 to $13,000). In Manhattan, prices passed $1,500 per square foot. Bengaluru still gives good value even as its costs rise.
Market Trends and Demand
Bengaluru’s market grows steadily. Reports from JLL point to a 30% yearly jump in home sales. In the first quarter of 2024, 16,995 units were sold. The commercial real estate market also grows fast. CBRE said the city took in 70.2 million square feet of commercial space over five years. This amount is higher than the space taken in by London, New York, Singapore, Beijing, and Hong Kong together.
The data shows Bengaluru as a tech-driven market. It stands out in both local and global talks.
NRI Investment Returns: Assessing the Landscape
Investors look at rental yields. In Bengaluru, yields vary from 3% to 6%. Areas like Electronic City and Whitefield show strong numbers. Property values also rose by about 11% to 12% in 2023, as noted by Seedwill Consulting.
Some investors on Reddit say they might wait for a 20% to 30% drop in prices. Even this view shows that Bengaluru has many chances compared to the fixed prices in London and New York.
Why NRIs Should Invest in Bengaluru Properties
Many reasons make Bengaluru a good choice for NRIs:
1. Steady Economic Growth
Bengaluru has a strong IT job market. This growth pushes a steady need for homes. India’s economy is set to move from 6.1% in 2023 to 6.5% in FY24. This steady trend makes Bengaluru a safe place to invest over riskier markets abroad.
2. Affordable Prices and Value Growth
London and New York have very high prices. Bengaluru lets investors start with a lower amount. Luxury projects here run from ₹3 crore to ₹10 crore. This gap gives a chance for value to rise and for quick and long-term gains.
3. Steady Demand and New Infrastructure
Reports like NoBroker’s 2025 study point to northern Bengaluru as a key spot. Thirty-nine point seven percent of NRIs like the area. It is near the international airport and gains from new projects like the Namma Metro Phase 2 and the Peripheral Ring Road. Such projects push property values up.
4. Emotional and Practical Bonds
Many NRIs see buying in Bengaluru as more than a financial choice. A talk in Hindustan Times showed investors who plan to use their properties as homes when they return to India. This mix of heart and care makes buying here special.
Conclusion
Bengaluru’s property market does not yet match the fame of London or New York. It still provides low prices, fast urban change, and good investment plans. The latest data shows strong commercial growth and many home sales.
NRIs find Bengaluru a mix of good prices, strong chance for value rise, and a tie to home. While London and New York are known for luxury and steady markets, Bengaluru makes its mark as a lively and reachable choice for smart investors.
Sources:
- JLL. (2024). Bengaluru Real Estate Market Overview
- CBRE. (2020). Property Market Trends
- Seedwill Consulting. (2023). Capital Appreciation in Indian Real Estate
- NoBroker. (2025). NRI Investment Insights
This clear view of data and trends helps investors decide on their next property purchase. For more updates on real estate, please watch our blog.
Disclaimer: This article has been generated by AI based on the latest news from Google News sources. While we strive for accuracy, we recommend verifying key details from official reports.
