NRIs are investing in Bengaluru due to the city’s strong tech connect and familiarity with its IT-driven ecosystem, along with the currency advantage. Steady rental demand, improving infrastructure, and potential for capital appreciation in key micro-markets enhance the appeal, while many buyers also see these homes as future end-use properties for retirement.
US-based NRIs account for a dominant share of overseas transactions in Bengaluru’s residential market, according to real estate experts. Many view property purchases in the city as part of a long-term relocation plan rather than a purely financial investment.
“Most of my NRI clients intend to eventually return to India and see homeownership here as a preparatory step,” said Manjesh S Rao, chief real estate officer at BrokerInBlue. “In several cases, apartments are booked entirely while buyers are still in the US, with visits to India limited to registration formalities.”
North Bengaluru and emerging pockets gain traction
Real estate experts say that North Bengaluru has emerged as an attractive destination for apartment investments, driven by improving infrastructure, proximity to the airport and growing commercial activity.
Entry-level prices for a standard 2BHK apartment in the region typically start at around ₹1 crore, with monthly rental values in the range of ₹30,000-40,000, making it appealing for investors seeking steady income along with capital appreciation, they say.
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In the premium segment, luxury apartments in North Bengaluru command investments of approximately ₹2 crore, with monthly rentals averaging between ₹50,000 and ₹60,000, reflecting strong demand from senior professionals and expatriates.
According to Sunil Singh, director of Realty Corp, investor interest is increasingly gravitating towards emerging micro-markets such as Thanisandra, Hennur and Bagalur, which are benefiting from improved connectivity, upcoming social infrastructure and relatively early-stage pricing compared to more saturated parts of the city.
However, in premium localities like Hebbal in the north, prices range from ₹10,000 to ₹12,000 per sq. ft., pushing the cost of a 2BHK to ₹1.25 crore to ₹2 crore. However, the rental returns are around ₹40,000–45,000 per month, experts said.
Real estate experts say that the growing concentration of large multinational campuses in North Bengaluru has further strengthened investor interest in the region. Companies such as Amazon India, SAP Labs and Wipro have either taken up sizable office leases or initiated campus developments there, making the corridor particularly attractive to US-based NRIs seeking long-term relevance and rental demand, they say.
This interest is being reinforced by a pipeline of major infrastructure projects, including the suburban rail network, the Peripheral Ring Road and the Bengaluru Satellite Town Ring Road.
East and South-East Bengaluru draw investor interest
East Bengaluru continues to draw investor interest, particularly in micro-markets around Varthur and Panathur, where experts say price headroom remains despite sustained demand.
Entry-level prices for a 2BHK apartment in these pockets are currently around ₹1 crore, with annual capital appreciation estimated at 15–20%. Larger 3BHK units are priced upwards of ₹3 crore, reflecting growing preference for spacious homes among both end-users and investors, they say.
Rental demand in these areas remains steady, supported by their proximity to major employment hubs. Monthly rents for 2BHK apartments typically range from ₹30,000 to ₹50,000, making them attractive to investors seeking steady yields alongside long-term appreciation, say local brokers.
Closer to Whitefield, however, prices have already seen a sharp run-up. A 2BHK apartment in established Whitefield locations now costs around ₹2 crore, with available inventory thinning rapidly. Rentals in the area average about ₹50,000 per month, driven by consistent demand from professionals working in nearby IT parks, Kiran Kumar, president at Hanu Reddy Realty, said.
Bellandur has emerged as another high-value micro-market, commanding a noticeable premium. Prices for 2BHK homes here are at least 20% higher than in neighbouring localities, a trend attributed to its strategic location along key IT corridors. These areas have witnessed strong appreciation over the years due to their connectivity and concentration of technology offices, Kumar said.