Township boom: North & East Bengaluru lead 2026 real estate demand

Bengaluru’s 2026 real estate boom sees demand shift to integrated townships, with North driving growth, East rental yields, and South value buys

The Bengaluru real estate market has entered a new phase in early 2026, driven by infrastructure expansion and the rise of Global Capability Centres (GCCs). According to Knight Frank India, the city remains India’s leading office hub, with leasing volumes exceeding 28.7 million sq. ft. This corporate boom has reshaped investor preferences, shifting demand from standalone apartments to integrated townships—self‑sustaining enclaves combining residential, commercial, and recreational spaces. With property prices rising at nearly 12% annually, certain micro‑markets are emerging as prime destinations for township investments.

North Bengaluru: The Growth Engine
The Hebbal–Devanahalli corridor leads in capital appreciation, supported by proximity to Kempegowda International Airport and the Aerospace SEZ. Devanahalli commands average prices of ₹9,150 per sq. ft., with luxury townships fetching premiums. Rental yields here range from 4.1% to 4.8%, driven by professionals in aviation and technology. Hebbal and Jakkur, entry points to the north, see prices between ₹9,000–₹13,000 per sq. ft., boosted by Manyata Tech Park and the new Airport Metro line.

East Bengaluru: The Rental Yield Powerhouse
Whitefield and Sarjapur Road dominate new launches, accounting for nearly 45% of supply. Whitefield, an IT hub, offers prices of ₹7,500–₹11,000 per sq. ft. and rental yields of 4.4%–5.0%. Sarjapur Road, connecting the Outer Ring Road and Electronic City, records yields of 4.0%–4.8% with prices between ₹7,200–₹10,500 per sq. ft., attracting families seeking township living near international schools.

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South Bengaluru: The Value Frontier
Kanakapura Road, supported by Metro Green Line and NICE Road, offers affordable options at ₹5,000–₹7,500 per sq. ft., with capital growth of 8–10% and modest rental yields of 3.0%–3.5%. Electronic City, home to major tech firms, provides mid‑segment housing priced at ₹6,500–₹8,500 per sq. ft., with rental yields of 4.5%–5.5%.

Conclusion
North Bengaluru, particularly Devanahalli, offers the strongest appreciation potential, while East Bengaluru ensures stable rental income. With Knight Frank reporting a healthy Quarters‑to‑Sell ratio of 5.8, the market is consolidating, making 2026 an opportune time to invest in integrated townships.

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