Bangalore's Real Estate Shift: Why the Edge Districts Are Now Top Investment Picks
The Bangalore real estate scene is transforming dramatically. With premium tech corridors constantly rising in price, buyers are adjusting their focus to cost-effective peripheral markets offering strong growth and promising returns.
The Cost Pressure in Central Locations
Prime areas like Whitefield, Sarjapur Road, and the Outer Ring Road have seen steep price hikes over the past five years. These top spots now hit high prices of around ₹12,000 per sq ft, making them unaffordable for many middle-class buyers. Buyers are now rethinking their investment choices due to this new pricing landscape.
Here's the data: Residential prices in Bangalore climbed 57% over five years, rising from around ₹4,960 per sq ft in 2019 to ₹7,800 in 2024. In the past year alone, prices surged 32%, boosting the urgency for value-driven options.
Edge Areas Outdo Main Areas
While the main parts of the city cost a lot, the periphery regions show better price improvements. A December 2024 ANAROCK Research report highlights peripheral areas outperforming prime spots from 2019 to 2024.
Devanahalli in North Bangalore is a perfect example. Over six years, it saw 49% growth, jumping from ₹4,982 per sq ft in 2019 to ₹7,400 per sq ft in Q3 2024. This outclassed Electronic City’s 38% gain during the same time frame.
Also, Gunjur in east Bangalore climbed up a mind-blowing 69% in five years, from ₹5,030 per sq ft in 2019 to ₹8,500 per sq ft in Q3 2024, beating Thannisandra Main Road’s 62% rise in the same period.
New Buyer Choices
Realtors see a big change in buyer focus. Edge locations now catch interest like never before. Real estate agents note a 10–15% jump in queries for these outer zones compared to central tech hubs. This shift shows buyers now value affordability with solid future gains more than being near high-tech zones.
As central tech area prices keep rising, more buyers explore regions like North Bangalore, Devanahalli, Hennur, and Doddaballapur Main Road. The appeal here comes in several ways:
- Lower initial costs than established areas
- Better long-term price increase from growing infrastructure
- Higher living quality with spacious communities and more green spaces
- Better reach via better roads and new metro routes
Value Meets Profit
Edge locations provide a good mix of affordability and profit. Places like Devanahalli and Doddaballapur Main Road offer plots at ₹4,000–₹5,000 per sq ft. Apartments start at around ₹80 lakh, it is much cheaper than neighbouring cities.
This doesn’t mean a lower profit promise. State plans for large projects and tech parks spur value boost. The Peripheral Ring Road (PRR) being built is unlocking suburban areas like Devanahalli, Yelahanka, and Hennur Road.
Planners estimate areas near these routes will grow 20–35% over the next 2–3 years, with another 25–40% growth over the next five years. When the PRR opens, prices nearby will likely go up 20–30% because of better infrastructure, growing investor interest, and higher housing demand.
Infrastructure as a Driver
Better connections are what help edge areas grow. Enhanced links have changed buyer views. The Bengaluru-Chennai Expressway helps Sarjapur Road, cutting travel time between cities. Places like Malur and Kolar along this route are turning into key real estate spots.
Post-pandemic changes have sped this shift. Developers have started many projects in these outskirts areas to catch new demands. Now, improved connections let buyers live in spacious complexes full of green spaces, features once seen only in main places.
The Future Outlook
Looking at 2026 forward, this edge area boom seems set to keep growing. With more infrastructure projects and better connection plans, these spots will get more investment.
North Bangalore parts like Devanahalli look especially promising. Experts think prices here could go up 8–12% every year, offering returns better than inflation and other investments.
The luxury housing market is changing, too. Growth in north parts, partly due to infrastructure upgrades, it means this trend affects more than just first-time or budget buyers.
Things to Think About for Buyers
For people looking at Bangalore housing, edge areas now mix affordability, new development, lifestyle perks, and strong price gains. All this makes these places good investment spots.
With core tech area prices going up, the cost gap between edge and prime zones should shrink. People starting in new small areas like Devanahalli and Doddaballapur Main Road may see major gains as these areas grow and reach prime prices.
This change is more than just a market shift—it’s a new direction in Bangalore’s real estate map. Those seeking good housing, fair prices, and long-term value should definitely look at these edge areas seriously.