Bengaluru's real estate market is witnessing a remarkable transformation as peripheral areas are witnessing a renewed demand as is evident from both price appreciation and investor interest. Leading this charge is Gunjur in eastern Bengaluru, which has recorded an impressive 69% price growth over the past six years, outpacing even established prime areas and signalling a new era of urban expansion.
Bengaluru leads office space absorption by global capability centres in India (Representational photo) (Pexels)
A report from PropEquity reveals a compelling story of shifting market dynamics. Gunjur, for instance, according to the report, had witnessed 9031 units of housing supply launched and 7,635 units sold between Q1 2022-Q2 2025.
According to the latest ANAROCK research, Gunjur's average residential prices jumped from INR 5,030 per sq. ft. in 2019 to INR 8,500 per sq. ft. in Q3 2024 – an astounding 69% appreciation which surpassed the 62% growth seen in prime area Thanisandra Main Road during the same period.
This trend extends beyond individual micro-markets. Devanahalli, another peripheral area for instance, has witnessed a handsome 49% price growth compared to Electronic City's 38% appreciation, demonstrating that the periphery advantage is becoming a consistent pattern across Bengaluru's real estate map. It is not an open secret any more that growth engines in real estate are generally the tier-2, but a two-digit percentage level kind of growth in peripheral cities is certainly more than just a pleasant surprise.
Affordability remains a prime driver for the success of peripheral areas. While prime locations command premium prices, peripheral areas offer significant value for homebuyers. Gunjur's current average price presents an attractive entry point compared to established prime areas, making homeownership accessible to a broader demographic of buyers seeking quality living spaces without the premium price tag.
This affordability advantage has attracted both end-users and investors, creating a virtuous cycle of demand that continues to fuel price appreciation and development activity in these emerging corridors.
The success of peripheral areas is fundamentally anchored in massive infrastructure development that has transformed connectivity and accessibility. The Peripheral Ring Road has emerged as a game-changer, linking various parts of the city and reducing travel times significantly. Metro expansion plans are extending the network to previously underserved areas, while the proposed Satellite Town Ring Road and suburban railway projects promise to further enhance connectivity.
Industrial corridors and expressways have created multiple employment hubs beyond traditional IT corridors, reducing dependency on central Bengaluru for work opportunities. Gunjur's strategic location near major IT corridors like Whitefield, Brookefield and Bellandur, backed by large-scale infrastructure development, exemplifies how improved connectivity translates into real estate value creation.
The peripheral areas are experiencing unprecedented growth in commercial spaces, with new office complexes and shopping malls establishing these locations as self-sufficient ecosystems. Educational institutions, healthcare facilities, and recreational amenities are following suit, creating comprehensive social infrastructure that rivals traditional city centres.
This development pattern has eliminated the need for residents to commute to central areas for essential services, making peripheral living not just affordable but also convenient and comprehensive.
Modern homebuyers increasingly prioritise quality of life over mere proximity. Peripheral areas offer what central locations cannot – generous green spaces, low-density living, cleaner air, and privacy. The availability of larger plots enables developers to create state-of-the-art projects with extensive amenities, landscaped gardens, and recreational facilities.
The COVID-19 pandemic has accelerated this preference shift, with buyers valuing homes that offer both living and working spaces in healthier environments. Peripheral areas naturally provide these advantages, making them increasingly attractive to discerning buyers.
Favourable regulatory policies, including Transfer of Development Rights (TDR) mechanisms, have facilitated smoother project approvals and development processes in peripheral areas. These policy frameworks encourage planned development while ensuring sustainable growth patterns that benefit both developers and residents.
Government initiatives to develop satellite towns and suburban centres have created additional confidence among developers and buyers, leading to increased investment flows into peripheral projects.
The peripheral revolution in Bengaluru's real estate market appears set for sustained growth. With continued infrastructure development, improving connectivity, and evolving lifestyle preferences, these areas are positioned to attract increasing investment and development activity.
Improved connectivity in peripheral areas have boosted liveability, making them a good alternative to prime locations. So, the trend of luxury project launched in peripheries to meet growing demand indicates that this shift is not temporary in Bengaluru's real estate hierarchy.
The peripheral advantage – combining affordability, infrastructure development, lifestyle benefits, and strong price appreciation potential – makes these areas the most exciting investment destinations in Bengaluru's real estate market today.
This article is authored by Umesh Gowda H A, chairman and founder, Sanjeevini Group.
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