The Ghost Apartments Of ORR: Bengaluru’s Empty Towers With No One To Live In
Bengaluru's Outer Ring Road (ORR), once a symbol of the city's booming IT sector and rapid urbanization, is now facing a peculiar problem: a growing number of vacant apartment buildings, earning the moniker "ghost apartments". These empty towers stand as a stark reminder of the complexities and potential pitfalls within the city's real estate market.
The ORR's real estate surge was initially fueled by its proximity to major tech parks and business hubs, making it a prime location for professionals seeking convenient housing. Developers responded with a flurry of construction, leading to a significant increase in housing supply. However, several factors have converged to create this current situation of widespread vacancy.
One of the primary drivers is the oversupply of housing units, particularly in the luxury segment. In early 2025, Bengaluru witnessed a 62% surge in new home launches compared to the previous year, while actual home sales dropped by 10%. This disconnect between supply and demand has left many apartments unoccupied. Rising land and construction costs have also contributed to fewer luxury housing launches, with developers shifting focus to mid-range and premium segments.
Changing investor sentiment has also played a role. Many properties were purchased by Non-Resident Indians (NRIs) and High-Net-Worth Individuals (HNIs) as investments rather than primary residences. With growing economic uncertainties, some investors are now looking to exit the market, further increasing the availability of resale properties. Additionally, there's a perception that property prices in Bengaluru haven't grown as rapidly between 2024 and 2025, leading some to believe it may be time to "book profits".
Affordability is another significant concern. While Bengaluru remains a desirable destination for career opportunities, the cost of housing has skyrocketed. Even modest 2BHK apartments in areas like Whitefield, Sarjapur, and Yelahanka can cost ₹1 crore or more. Skyrocketing prices are pushing potential buyers to rent, but even rental rates have surged, reflecting post-pandemic inflation. As a result, many individuals are struggling to find affordable housing options.
The rise of remote work and the potential impact of Artificial Intelligence (AI) on the tech industry are also contributing factors. The increasing adoption of AI solutions has led to speculation about job security in the tech sector, which forms the backbone of Bengaluru's economy. This uncertainty has made potential homebuyers more cautious about making long-term investments.
Some reports suggest an 81% decline in luxury housing sales in Bengaluru during 2024, indicating a potential oversupply in the market. Local brokers have also noted a drop in luxury housing queries, further highlighting the challenging environment for new launches.
The situation isn't uniform across the city. While areas along the ORR face challenges, other regions, particularly South Bengaluru, are experiencing growth. Infrastructure developments, such as the Namma Metro expansion, are expected to improve connectivity and potentially redistribute demand.
Addressing the issue of vacant apartments requires a multi-pronged approach. Experts suggest increasing the floor space index (FSI) to allow for more housing development and implementing a vacancy tax on empty apartments to discourage speculative investments. Expanding rental housing options with better regulations to protect tenants is also crucial.
While the "ghost apartments" of ORR present a worrying picture, it's important to remember that Bengaluru's real estate market is dynamic. The city continues to attract skilled workers and investment, and long-term demand is expected to remain strong. However, addressing the current challenges of oversupply and affordability is essential to ensure sustainable growth and prevent the ORR from becoming a permanent landscape of empty towers.
