Is Bengaluru Property Boom A Bubble or Reality To Stay? Netizen Warns About Inflation, High Demand

Property rates in Bengaluru are skyrocketing and buying a house in the IT hub is a luxury for many, and renting a property at a decent locality is an endless war for the professionals who have recently shifted. Amid reports of challenges in investing in Bengaluru real estate, a netizen has stirred an online debate about the city's property boom.

In a reddit post, a social media user has highlighted the mindset of people about intlated prices of properties in Bengaluru when he moved to the city. Despite the initial naysaying about Bengaluru property boom from peers, the price of a property that the netizen saw being sold at Rs 96 lakh shot by 1.35 times in five years.

"2011 - Moved to Bangalore. Everyone said real estate was too inflated, better to wait for prices to stabilize. Project delays were common. Identified a 3BHK in JP Nagar for ₹96L," read the post by netizen on reddit.

Fast forward to 2016, the netizen shared how the massive influx of people continued in Bengaluru, leading to rising demand in the real estate market. "Water issues will come up, don't invest now, put your money in mutual funds instead," the netizen wrote while mentioning advice heard from people in 2016 and adding that the same property was being sold at Rs 1.3 crore.

The social media user continued the post and mentioned that the price of the property, mentioned earlier, had increased to a whopping Rs 2.5 crore in 2024. While juxtaposing reality and advices heard from people, the internet user added in post, "Prices have stabilized. Remote work is the future. The real estate bubble has burst." Reality: The market barely dipped and rebounded fast."

Prices are at all-time high

"Prices are at an all-time high, just wait, they'll cool down soon." Same property: Easily over ₹2.5cr, zapkey shows multiple sales already," the post added.
The social media post garnered myriad comments where people disparaged the hype around the Bengaluru property market. Many others maintained that high property rates in the city are likely to continue in the coming years.

Bengaluru property sale slump in December quarter

According to an Anarock study, property sales in Bengaluru witnessed a marginal decline of 1% in the quarter ending in December 2024. One of the posh areas of the city, East Bengaluru, which generally accounts for 35% of all the launches in the quarter, but still witnessed a 45% sequential decline in supply.
"The Bengaluru residential market exhibited a notable downturn in Q3 2024, with approximately 15,000 housing units sold, marking an 8% decrease compared to both Q2 2024 and Q3 2023," read the report by Anarock. Meanwhile, the total available inventory in Bengaluru stood at approximately 46,300 units, which was a modest 2% increase from the previous quarter. However, the inventory percentage has declined by a substantial 6% YoY from the same period in 2023, which indicates that the market is slowly absorbing the available units and helping in balancing the supply-demand ratio.

Bengaluru real estate boom

Despite a decline in sales during the December quarter, Bengaluru's residential real estate sector continued to be a driving force in India's housing market. Even when the residential sale was declining, Bengaluru accounted for a significant 17% of new housing launches across India's top seven cities including Mumbai and Delhi.

The sustained launch of real estate properties despite slump in property sale indicates a distorted demand-supplu ration in the Karnataka's capital city. However, the report mentioned that Bengaluru's real estate market is poised for sustained growth, fueled by a robust IT-ITeS sector, ongoing infrastructure development, and the upcoming festive season that is expected to further stimulate buyer interest.