Are Bengaluru’s 2BHK Homes Priced at ₹1 Crore Sustainable?

Bengaluru’s New Housing Reality

Once celebrated for its accessible housing, Bengaluru is witnessing a sharp escalation in residential prices. In several key micro-markets - such as Whitefield, ORR-Bellandur, and North Bengaluru - 2BHK apartments that were priced between ₹55–75 lakh just three years ago are now touching or exceeding ₹1 crore. This surge reflects a combination of tech-driven demand, supply constraints, and rapid infrastructure expansion.

Why Prices Have Jumped

The city’s housing boom is rooted in several structural factors:

• Tech workforce expansion: Bengaluru continues to absorb tens of thousands of high-income tech professionals each year, putting upward pressure on mid-segment housing.
• Limited land availability: Key IT corridors have reached saturation, pushing developers toward premium-priced projects.
• Infrastructure upgrades: Metro Phase-2 progress, airport corridor enhancements, and new peripheral roads have elevated land values.
• Developer strategy: With construction costs rising, many builders have shifted focus toward higher-ticket segments.

The Affordability Challenge

Despite healthy demand, Bengaluru’s affordability ratio - once the best among major metros - has weakened notably. Home loan EMIs have risen due to interest rate adjustments, and middle-income buyers now face stretched budgets. This has prompted concerns about whether the market may be entering overheated territory.

Are We in a Bubble?

Analysts caution that the price spike is uneven. While some pockets are justifiedly appreciated due to infrastructure and employment growth, speculative buying in certain fringe areas is noticeable. Investors are increasingly evaluating rental yields, which remain modest (2.5%–3%), raising questions about long-term sustainability.

How Bengaluru Compares to Other Metros

Contrasts with cities like Mumbai, Pune, and Hyderabad show a mixed picture. Mumbai’s premium zones remain costlier but follow stable appreciation patterns, while Hyderabad - where prices have surged sharply - shares Bengaluru’s demand-driven growth but with higher supply pipelines. This regional comparison helps identify whether Bengaluru’s rise is cyclical or structural.

What’s Next for Buyers?

Homebuyers are now adopting a cautious approach, focusing on:

• Projects near confirmed infrastructure rather than speculative corridors.
• Reputed developers with reliable delivery timelines.
• Transparent pricing that aligns with long-term appreciation trends.

With demand from the tech workforce expected to remain strong, the market may not crash - but price rationalisation in overstretched zones is possible.

Conclusion

Bengaluru’s ₹1-crore 2BHK phenomenon reflects the city’s transformation into a mature, supply-constrained metro. Whether this is a sustainable climb or an overheated phase depends on upcoming infrastructure delivery, supply additions, and economic stability in the tech sector. For now, the city stands at a critical turning point in its real estate journey.

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