Why HSR Layout Is Bengaluru's Rising Real Estate Destination in 2024

Over the past two years, HSR Layout, located in south-eastern Bengaluru, has witnessed a sharp 30 per cent rise in property prices, positioning it as one of the city's most sought-after real estate destinations. This significant price hike reflects its growing popularity among both residential and commercial property seekers.

Originally developed in 1985 by the Bangalore Development Authority (BDA) as a residential neighborhood, HSR Layout has transformed into a thriving urban hub. Proximity to major IT zones such as Electronic City, Sarjapur Road, and the Outer Ring Road has contributed significantly to its evolution. The locality’s strategic position and connectivity have attracted startups, making it a preferred location for entrepreneurs. “In the last five years, HSR Layout has gained traction not just as a residential area but also as a commercial hotspot,” Kiran Kumar, Vice President of Hanu Reddy Realty was quoted as saying in Hindustan Times.

The shift from traditional residential layouts to modern co-living and commercial spaces has been a defining factor in HSR Layout’s growth. Properties range from standalone houses to high-rise apartments in gated communities, and co-living options from brands like Zolo and Nestaway are prevalent. Key commercial streets, such as 27th Main Road, have become bustling retail and office hubs. Commercial rental rates here are approximately Rs 200 per square foot, while prime areas like Indiranagar command rents of around Rs 300 per square foot. The commercial rental yield in HSR Layout is reported to be as high as 8 per cent, attracting investors seeking profitable returns.

Residential properties in the area have also experienced a steep price surge. Monthly rents for a 2BHK apartment start at Rs 30,000, with an advance deposit typically ranging from six to nine months. In prime sectors like the 2nd and 3rd sectors, luxury residential properties are in high demand, with prices averaging Rs 28,000-Rs 30,000 per square foot.

The rise in HSR Layout’s property prices can be attributed to multiple factors:

1. Proximity to IT Hubs: The area’s location near key employment centers has driven demand for both residential and office spaces.

2. Startup Migration: With Koramangala becoming saturated and expensive, many startups have relocated to HSR Layout, further boosting its appeal.

3. Infrastructure and Connectivity: Its well-developed infrastructure and accessibility to major parts of Bengaluru have added to its allure.

“HSR Layout is rapidly becoming the next Koramangala,” said a local broker, highlighting its growing significance in Bengaluru’s real estate market.

According to the report, despite its rising popularity, HSR Layout faces several challenges that could impact its growth. Traffic congestion on the Outer Ring Road and Silk Board junction often results in long commutes. Additionally, heavy rainfall frequently leads to waterlogging in some areas, including apartment complexes and residential plots.

These issues, coupled with the steep rise in property prices, make affordability a concern for many potential buyers. Experts caution that sustained growth will require addressing these infrastructural bottlenecks.