Housing prices in Bengaluru could rise by up to 40 per cent, driven by expanding Metro connectivity and strong infrastructure development, according to a report by Colliers.
The city's real estate growth, fuelled by its robust technology sector and large talent pool, is expected to accelerate further with improved connectivity through roads, expressways, and the Metro network. Existing corridors served by the Purple and Green Lines have already seen increased activity, while the Yellow and upcoming Pink Lines are likely to boost demand in key residential and commercial zones. The proposed Blue Line connecting Outer Ring Road to the airport is expected to unlock further potential in North Bengaluru.
The report projects office space demand in key micro-markets like CBD and Electronic City to reach up to 7 million sq ft in the next two years, with rentals likely to rise 5–10 per cent. Industrial and warehousing demand is also expected to grow across clusters such as Bommasandra and Jigani due to improved logistics and workforce mobility.
Meanwhile, a separate report by JLL highlighted a broader boom in India's real estate sector. Land acquisitions surged 32 per cent year-on-year in 2025, with developers acquiring over 3,000 acres worth ₹54,818 crore, unlocking nearly 229 million sq ft of development potential.
Tier I cities accounted for 89 per cent of total investments, while Tier II cities saw higher transaction volumes but lower capital inflows, indicating emerging opportunities. The momentum has continued into 2026, with significant land deals and rising investor interest.
Residential development remains the primary growth driver, accounting for nearly 78 per cent of land allocation, followed by office and industrial segments. The sector is expected to attract increased funding from institutional investors, private credit providers, and alternative investment funds, reinforcing India's position as a high-growth real estate market driven by infrastructure and urban expansion.
(With inputs from IANS)
