Bengaluru’s soaring ₹1-Crore 2BHKs ignite real estate bubble concerns

Bengaluru’s residential real estate market is under intense scrutiny as property prices and rents continue to climb sharply, raising questions about long-term sustainability. Once considered India’s most affordable tech hub, the city is now witnessing ₹1-crore price tags for 2BHK apartments in areas like Whitefield, Sarjapura, and Yelahanka — even before factoring in registration and interior costs.

This surge is being driven by a confluence of factors: a post-pandemic return-to-office trend, limited housing supply in key IT corridors, and a surge of liquidity from high-paying tech jobs and start-up windfalls. The recent stock market debut of fintech firm Groww, which created a new wave of local millionaires, has further intensified demand in the premium housing segment.

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However, the rapid appreciation has sparked debate among residents and analysts alike. Many middle-class homebuyers are finding themselves priced out of the market, prompting concerns that Bengaluru’s real estate boom may be veering into bubble territory. Online forums have become hotbeds of discussion, reflecting growing unease about speculative buying, inflated resale values, and developers holding unsold inventory in anticipation of higher returns.

Critics point to structural risks, including the city’s overburdened infrastructure, persistent water shortages, and worsening traffic congestion, as potential brakes on future price growth. Additionally, the maturing IT sector and the disruptive potential of AI on employment are raising questions about the long-term stability of income streams that have historically fuelled housing demand.

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While luxury real estate continues to attract investment — buoyed by stock market gains and employee stock options — the broader market appears increasingly polarized. For many, Bengaluru’s housing market is no longer a guaranteed investment vehicle but a lifestyle choice fraught with uncertainty. The city’s real estate trajectory now hinges on whether fundamentals can keep pace with soaring valuations.