Bengaluru Real Estate 10-Year Outlook: Plots or Apartments?
Bengaluru is one of India’s top cities for investing in properties. Almost 40% of all property money in India goes here. The city is developing steadily because of jobs in IT, Fintech, biotech, and aerospace. People always need homes.
Investors now have a choice: Buy plots to earn money later or buy apartments to get rent every month.
Why Bengaluru Stands Out?
The city’s premium and mid-segment properties dominate sales.
- North Bengaluru is very popular, making up 40% of NRI purchases.
- East Bengaluru follows with 38% and South Bengaluru with 18%.
- Luxury properties are growing fast. In FY25, they sold for ₹1,000 crore, a 59% rise from last year.
- These trends attract high-net-worth investors who want wealth creation.
| Region | Location & Property Type | Price/Sq Ft (₹) | Appreciation | Rental Yield (%) |
| North Bengaluru | Devanahalli (Plots) | 3,500 – 5,500 | 12 – 15% | N/A |
| North Bengaluru | Hebbal (Mixed) | 8,900 – 15,500 | 10 - 12% | 4 – 5 |
| East Bengaluru | Whitefield (Apartments) | 9,800 – 19,800 | 6 – 8% | 4.2 – 4.6 |
| East Bengaluru | Sarjapur Road (Mixed) | 7,000 – 13,200 | 8 – 12% | 3.6 – 4.2 |
| East Bengaluru | Electronic City (Apartments) | 7,000 – 12,500 | 7 – 9% | 4 – 4.5 |
| South Bengaluru | Bannerghatta Road (Mixed) | 8,500 – 9,650 | 6 – 8% | 3.5 – 4 |
Plot Investments: Long-Term Capital Growth
Plots in Bengaluru usually increase in value faster than apartments. Land is limited, and the city keeps growing, so plot prices go up.
- In Devanahalli, a plot bought for ₹25 lakhs in 2018 is now worth ₹55–60 lakhs almost double in seven years.
- Plots near new roads like the Satellite Town Ring Road (STRR) can give 15–25% returns each year.
- Maintenance is very low, only ₹3,000–5,000 per year, while apartments cost ₹2.4–4.8 lakh per year.
- Selling plots is easier and faster because many people want land.
Apartments: Constant Rental Income and Convenience
Apartments give monthly rental income, which is perfect for NRIs or investors who want regular cash.
- Rental yields are 3.5–5.5%. Areas like Electronic City, Sarjapur, and Hebbal perform best.
- Luxury apartments make up 51% of the market and have rental rises of 20–25%.
- Apartments are ready to use, which is very convenient.
- Traditional IT hubs like Whitefield may have softer demand due to job fluctuations, but premium areas like Koramangala, Indiranagar, and HSR Layout stay strong.
Purva Northern Lights is an excellent choice for apartment investors. The development is located at KIADB Aerospace Park in North Bangalore. It has 2, 3, and 4 BHK homes across 8 towers with 2600+ units, ranging from 1010–2400 sq ft. With contemporary designs and easy access to tech hubs, NH 44, STRR, and the upcoming metro, it offers both rental income and long-term value growth.
Investment Strategy: Balancing Plots and Apartments
For most NRIs or long-term investors, a mix of plots and apartments works best. A 60–40 or 70–30 split favouring plots gives better returns.
Why Plots Are Often Better for Long-Term Growth
- Higher Capital Appreciation: Plots in growing corridors give 15–25% per year, while apartments give 5–6%.
- Tax Efficiency: Capital gains from plots are less affected by taxes.
- Aligned Demand: NRIs like luxury plots.
- Infrastructure Boost: New roads and metro lines increase plot value quickly.
- Financing Options: Loans are now available for gated plots, making it easier to buy
Frequently Asked Questions
Sarjapur Road, Devanahalli, and the STRR corridor areas grow fastest. They can give 15–25% returns per year because of new roads and infrastructure.
Most people do 60%–40% or 70%–30% in favour of plots. Buy plots in North and East Bengaluru for growth. Buy apartments in Whitefield, Hebbal, or Sarjapur for rent.
Attibele and Hoskote are cheaper, costing ₹2,000–6,000 per sq. ft. Many new buyers and small investors like them.
Apartments do well in Whitefield, Electronic City, Hebbal, Sarjapur Road, and Bagalur. Rental yield is 3.5–5.5%, which gives a steady monthly income.
