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Bengaluru real estate: Why HSR Layout has seen property prices surge by 30%?
Bengaluru's HSR Layout has evolved as the startup hub of thecity from a sleepy residential layout to a bustling IT corridor
It has been almost four months since Rajnish Singh rented a sem-furnished 2BHK apartment in Bengaluru's HSR Layout for ₹35,000 per month.
"I used to think Mumbai was bad when it comes to renting, but I was surprised in Bengaluru too. Comparatively, HSR Layout seems like a calm place, with lots of greenery and good connectivity," Singh added.
Located right in the heart of south-eastern Bengaluru, HSR Layout exemplifies cosmopolitan life and Bengaluru's changing urban landscape.
From a sleepy residential layout to a bustling IT corridor, HSR Layout has evolved as the startup hub of the city.
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Started as a prime residential layout
The Bangalore Development Authority first established the neighbourhood in 1985.
Local brokers say the layout slowly evolved into one of the startup hubs of the city due to its close proximity to Electronic City, Sarjapur Road, and the Outer Ring road—which is home to IT Parks and other Special Economic Zones.
"The last five years, the place boomed as not only a prime residential area but also a commercial hub. I see a lot of startup owners renting or buying a home in HSR Layout and Indiranagar," Kiran Kumar, vice president of Hanu Reddy Realty said.
At first, Indiranagar and Koramangala became two of Bengaluru's most desirable areas. However, as Koramangala's real estate values surged, some company founders began to gravitate toward the HSR Layout.
As a result, several startups moved to the HSR Layout, which was considerably less crowded than the already-established Koramangala district and had accessible property.
The locality also presents a multitude of options - from standalone traditional structures to high-rises in gated societies. Additionally, co-living brands like Zolo and Nestaway are also headquartered in the area.
Also Read: New infra corridors spark a flurry of land deals in the Bengaluru real estate market in 2024
Prices surge 30% in 2 years
As startups flocked to HSR, office spaces cropped up in clusters, solidifying its status as both a residential and commercial hub, local brokers said.
They added that real estate prices in the area surged by 30% in the last 2 years.
"The 27th Main in HSR Layout became one of the closest high streets for residents in south-eastern Bengaluru. Overall, commercial and retail spaces in the area command monthly rent of about ₹200 per sq ft, and behind Indiranagar for ₹300 per sq ft rent per month," Kumar said.
Local brokers say the commercial rental yields in HSR Layout are as high as 8 percent. "HSR Layout is going to be the next Koramangala for south-east Bengaluru the way the real estate is evolving in the area," brokers say.
For residential, the rents in the area start at ₹30,000 per month for a 2BHK with a usual deposit of 6-9 months. "In some of the prime sectors like 2nd and 3rd sector, we see several luxury residential deals taking place. On average, the home cost in HSR Layout is not less than ₹28,000-30,000 per sq ft.
HSR Layout has its own challenges
Experts say, with a major surge in real estate prices most parts of the sector remain unaffordable.
Traffic jams on the Outer Ring Road and the main Silk Board intersection, which links sections of Bengaluru's IT Corridor, can occasionally stretch over an hour.
Additionally, areas of the HSR Layout, including a number of apartment complexes and residential plots, are often inundated by heavy rainfall making it a challenge for the residents.
