Are Bengaluru’s lake-facing homes worth the premium? Here’s what homebuyers should know before investing
Bengaluru real estate: Before buying a lake-facing home, homebuyers should look beyond the view, check for flooding risks, and verify legal clearances
Bengaluru homebuyers are increasingly trading skyline views for waterfront serenity. A growing number of buyers now prefer lake-facing homes, a shift that’s pushing up prices in premium neighbourhoods such as Hebbal, Whitefield, and Yelahanka. According to ANAROCK Group, lake-view apartments command 15–25% higher prices than non-lake-facing units in the same project, with annual appreciation of 8–12%, outpacing the broader market.
Priyanka Kapoor, senior vice president, Research and Advisory at ANAROCK Group, said demand for lakeside homes in Bengaluru has increased significantly over the past two years. “A FICCI-ANAROCK survey found that 30% of buyers in 2024 prioritised lakeside living for its tranquillity and connection to nature,” she said. Properties along major water bodies are seeing 5–12% yearly price appreciation, driven by buyers seeking open spaces, better air quality, and proximity to premium social infrastructure.
Kapoor said that developers are now marketing lake-facing residences as “the next luxury category,” similar to those with sea views or golf course views. “While they were once targeted only at high-end buyers, mid-segment families are also showing interest, attracted by the lifestyle and scenic value,” she said.
Real estate experts note that such apartments typically offer a higher rental yield. “Being close to a lake greatly increases the chances of selling or renting a property. Such homes usually fetch 10–15% higher rent. The resale values of these types of properties also go up faster, because they attract high-end tenants and buyers looking for a good place to live,” Kapoor said.
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Lake-facing apartments command higher prices
Real estate experts point out that projects like Embassy Pristine in Bellandur (South-East Bengaluru) typically start at ₹5 crore for 3- and 4-BHK units.
Lake-view luxury developments around North Bengaluru’s Hebbal continue to command strong demand. “In Hebbal, projects such as SNN Clermont start from ₹5 crore for a 3BHK, while Embassy Lake Terraces are priced between ₹7–8 crore. Nearby, Karle Zenith near Nagawara Lake offers premium homes starting at ₹4 crore,” Sunil Singh of RealtyCorp said.
He said that South-east Bengaluru also has a few high-end lake-facing options like Under the Sun on Sarjapura Road, where villas start around ₹3 crore, appealing to buyers who want the serenity of water views without moving too far from the city’s IT corridors.
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Are lake-facing homes in Bengaluru worth the premium amid rising flood risks?
Not all buyers believe a lake-facing home is worth the premium. Experts say some are cautious about flooding risks and environmental concerns, particularly after repeated instances of inundation near water bodies in north Bengaluru.
“Despite the National Green Tribunal's ruling to maintain a 75-meter buffer from the lakes in Bengaluru, nearly one-third of housing projects in the city have ignored the rules in some way or the other. Another example in the IT capital is the contaminated Bellandur Lake, which, besides factory waste, has been a preferred receptacle for construction waste. If the project does not have the right clearances, there can be problems in the future if action is taken,” Kapoor said.
According to Kiran Kumar of Hanu Reddy Realty, the trend of building new lake-facing apartments in Bengaluru has slowed down considerably in recent years. Developers are increasingly cautious about taking on projects near natural water bodies due to stricter environmental norms, buffer zone regulations, and growing buyer awareness of flooding risks. “The frequency of new lakefront projects has dropped,” Kumar said. “Buyers today are far more cautious about purchasing homes right next to a lake, especially after repeated flooding incidents in some parts of the city.”
He said that even in the resale market, demand for such homes has become more selective. “We’ve had clients who specifically told us they don’t want to buy a property near a lake or any other waterbody,” he said. “While lake-facing homes still appeal to some luxury buyers, others view them as a potential risk rather than an asset.”
Kumar pointed out that the type of lake also plays a big role in determining property value. For instance, projects overlooking man-made or well-maintained lakes tend to perform much better than those next to natural lakes. “At Brigade Gateway, for example, one of the towers facing the artificial lake is priced at around ₹20,000 per sq. ft. and continues to appreciate steadily,” he said. “That’s because it’s a controlled waterbody with proper maintenance and no flooding or other risks.”
In contrast, he explained, apartments facing natural lakes often see slower price growth. “In many of these areas, prices have remained stagnant compared to other micro-markets,” Kumar said. “Factors like foul odour, mosquito menace, and the fear of encroachment or flooding have made buyers think twice. Unless the lake is well-managed and the project follows all buffer and environmental norms, appreciation tends to be limited.”
What buyers should check before purchasing lake-facing homes
Before signing up for a lake-facing home, buyers should look beyond the picturesque view and understand the site’s physical and regulatory realities, explains Sarang Kulkarni, Managing Director of Descon Ventures. He explained that while a home beside a lake can offer serenity and better air quality, overlooking crucial details about the land and its surroundings can lead to serious issues such as flooding, poor accessibility, or even legal complications.
Kulkarni said one of the most important factors is the topography of the area. The land on which the project stands should ideally be higher than the lake’s bund level.
“If the apartment complex is built on land lower than the bund, water from surrounding areas will naturally flow toward it,” he said. “This makes the property prone to waterlogging and flooding during heavy rainfall. Buyers should verify that the site has a proper slope for natural drainage and that the project is constructed on higher ground.”
He also advised homebuyers to scrutinise official land records and village maps before purchasing. These documents help determine whether the project has encroached upon a water channel, lakebed, or buffer zone. “There have been instances where developers have extended construction right up to the edge of a lake or over a natural stormwater drain,” Kulkarni said. “Ensuring that proper buffers are maintained from the lake boundary protects not only the ecosystem but also the structural safety and legal validity of the property,” he said.
Another critical aspect, Kulkarni noted, is access to the project. The entry and exit points should be located on higher ground, ensuring that residents have a safe route in case of flooding.
“Buyers should check that the roads leading to the project are not prone to waterlogging,” he said. “In emergencies, especially when valuables or cars need to be moved quickly, having access from a non-flood-prone area can make a huge difference.”
Kulkarni said that while lake-facing apartments carry undeniable lifestyle appeal and long-term value, “a little due diligence goes a long way in making sure that what seems like a dream home doesn’t turn into a flooding nightmare.”
