Bengaluru real estate market: Will it mirror Mumbai’s footsteps? Netizens weigh in
Netizens are debating whether Bengaluru's real estate market will follow the same boom-and-stabilization pattern seen in Mumbai over the past two decades
As Bengaluru's property prices continue to rise, discussions on Reddit have sparked comparisons to Mumbai's real estate market’s trajectory, with many speculating whether the city will follow a similar boom-and-stabilization pattern. While some believe Bengaluru is still in a high-growth phase, others point to the city's potential price plateau, much like Mumbai’s market after years of rapid appreciation.
A key factor in this debate is Bengaluru's ‘ongoing unemployment crisis’, which, coupled with stagnant wages, raises questions about the affordability of future property prices. As one Reddit user pointed out, for the average buyer to afford a ₹2 crore apartment, salaries would need to double—a scenario that seems unlikely given the current economic climate. Bengaluru's real estate growth has closely followed the rise of its tech sector, but a slowdown in hiring may make buyers more hesitant.
Mumbai versus Bengaluru
One Redditor, who owns two flats in Mumbai and resides in Bengaluru, shared his experience of witnessing Mumbai’s real estate boom.
“I bought a flat in Thane in 2005 for ₹7 lakh and sold it for ₹65 lakh in 2015, reflecting nearly tenfold growth. However, between 2015 and 2019, the pace of appreciation slowed, and in recent years, prices have largely stagnated,” the user wrote.
He also mentioned purchasing a flat for ₹1.1 crores in 2021 but struggling to sell it for the same price today, signalling a shift in market trends. “Will Bengaluru’s property market follow a similar pattern? The exact price point at which it will stabilize, however, remains uncertain,” he added.
Is Bengaluru's real estate market mirroring Mumbai?
Bengaluru, often called the ‘Silicon Valley of India,’ has seen a real estate boom fueled by its expanding IT sector and ongoing infrastructural developments. Property rates have steadily appreciated, with certain areas witnessing significant growth. In neighbourhoods like Koramangala, Indiranagar, HSR Layout, and Hebbal, brokers report that 1BHK apartments can command rents upwards of ₹40,000 per month, depending on the amenities within gated communities.
Also Read: Will Bengaluru Metro’s expansion make real estate markets more affordable?
Tenants in Bengaluru, however, continue to face challenges, particularly when it comes to security deposits. While six to nine months of rent is the typical norm, many tenants report that landlords often request deposits of nearly double the usual amount.
While comparisons between Bengaluru and Mumbai's real estate markets are being drawn, Redditors have highlighted some key differences. Mumbai’s market matured quickly, leading to saturation, while Bengaluru’s diversified economy and ongoing infrastructure projects may allow for prolonged growth.
As one Redditor said, "It all comes down to supply, demand, and purchasing power. You managed to sell your flat for ₹65 lakh because, over the previous decade, salaries had grown significantly alongside job opportunities. But can the same be expected in the next ten years? Will the average buyer be able to afford a ₹2 crore apartment? For that to happen, salaries would need to double. Given the current unemployment crisis and stagnant wages, that seems unlikely—but time will tell."
