Bengaluru Second Most Congested Globally: Traffic Now Dictates Real Estate Decisions

Bengaluru’s infamous traffic congestion is now shaping real estate choices, commuting habits, and investment decisions, highlighting how urban mobility challenges are influencing life in India’s tech capital.

According to the TomTom Traffic Index 2025, Bengaluru ranks as the second-most congested city in the world, trailing only Mexico City. Commuters in the city lose an average of 168 hours annually—more than seven full days—stuck in traffic. Average congestion levels hover around 74%, meaning a commute that would normally take 40 minutes can extend to nearly an hour and 20 minutes under typical conditions.

A 10-kilometre drive in Bengaluru now takes an average of 36 minutes, with peak-hour speeds dropping to just 13–14 kmph, placing it among the slowest major urban corridors globally. On its worst day in 2025, traffic congestion exceeded 100%, forcing vehicles to crawl just a few kilometres in 15 minutes. Events such as a single bus breakdown on the Outer Ring Road, one of Bengaluru’s busiest IT corridors, have previously triggered gridlocks stretching several kilometres and stranding thousands of commuters for hours.

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The impact of congestion is no longer limited to lost time; it is increasingly influencing where people choose to live and work. Professionals are prioritising proximity to workplaces, IT parks, and commercial hubs over traditional neighbourhood preferences. As a result, property demand is surging in areas with better access to major employment centres, while peripheral zones continue to suffer slower infrastructure development.

The Economic Survey 2025–26 highlights potential solutions, recommending targeted congestion pricing and demand-based parking management as tools to reduce urban traffic. It cites international examples, such as Singapore and London, where dynamic, electronic congestion-pricing systems have successfully cut traffic volumes, improved travel speeds, and lowered emissions. Under these systems, vehicles are automatically charged when passing toll gantries during peak periods, incentivising off-peak travel or alternative modes of transport.

Urban planners and policymakers say Bengaluru’s traffic woes underscore the urgent need for holistic, people-centric city planning. Investments in public transport, last-mile connectivity, and flexible work arrangements are critical to improving daily commutes, while real estate developers increasingly account for travel times in project planning and marketing.

With traffic now directly affecting quality of life, economic productivity, and housing decisions, Bengaluru’s congestion is emerging as one of the city’s most pressing challenges, shaping not just how people move but also where they choose to call home.

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