Bengaluru – Bengaluru’s residential real estate market in the first half of 2025 is undergoing a transformation—one that reflects not just rising prices, but a notable shift in buyer behavior and developer strategy. More than ever, homebuyers are looking beyond basic shelter. They are seeking lifestyle upgrades, larger living spaces, premium amenities, and better connectivity. As a result, developers are responding by launching bigger, better homes—even as affordability in the lower ticket size segment fades.
Recent data from Knight Frank’s H1 2025 research confirms this trend. Bengaluru recorded the highest number of residential launches in recent history, at 33,498 units, a 31% year-on-year increase compared to H1 2024. However, overall sales saw a modest dip of 3% year-on-year, clocking in at 26,599 units. This disparity between new launches and actual sales doesn’t indicate weakening demand—it reflects a realignment in the segments that buyers are now targeting. In short, the Bengaluru market is maturing.
Buyers Want Bigger Homes
What stands out most in the H1 2025 data is the growing preference for mid- to premium-segment homes. Housing priced between INR 10–20 million (INR 1–2 crore) accounted for 47% of total sales, while the INR 20–50 million category made up 24%. Together, these two brackets now represent nearly 79% of all residential sales in Bengaluru.
This is a major shift from just a few years ago when affordable housing (<INR 5 million) dominated the market. In H1 2025, that segment contributed only 6% of sales. Even the INR 5–10 million category—which was previously seen as “safe middle ground”—saw a drop in share, contributing 22% of sales with higher inventory levels and slower off-take.
This appetite for bigger homes is driven by multiple factors. Firstly, the shift to hybrid work and the rise of home offices has pushed families to seek more spacious accommodations. Secondly, there’s a strong aspirational element: as incomes rise and lifestyles evolve, homebuyers are increasingly willing to stretch budgets for quality homes with amenities such as clubhouses, coworking spaces, and landscaped gardens. Finally, a surge in NRI investments and first-time luxury buyers is adding to the momentum in premium segments.
Developers Adjust Supply Accordingly
Developers, in turn, are aligning their new launches to match this change. In H1 2025, new supply was skewed heavily toward homes priced between INR 10–50 million. These homes tend to offer better layouts, improved infrastructure access, and modern amenities that meet current buyer demands. Conversely, the supply of homes priced under INR 5 million dropped significantly.
This is also a response to economic pressures. With land prices, construction costs, and regulatory expenses all rising, developers find it more financially viable to focus on premium units where margins are better. As a result, the unsold inventory in lower price segments is starting to pile up. The sub-INR 5 million category had 18,478 unsold units by the end of H1 2025, with a QTS (Quarters to Sell) of 16.6, showing sluggish demand.
Meanwhile, the INR 10–20 million segment had 12,918 unsold units, but a far more manageable QTS of 2.6, indicating robust sales velocity. Even the INR 20–50 million segment performed well, with 4,962 unsold units and QTS at 2.1—a reflection of strong buyer interest and effective pricing strategy.
Prices Are Climbing—But Rationally
Bengaluru’s average residential price rose by 14% year-on-year, reaching INR 75,912 per sq.m (INR 7,052 per sq.ft). The price growth is broad-based but especially sharp in markets with new infrastructure and better accessibility. For instance:
- Whitefield saw an 18% YoY appreciation, with prices ranging from INR 64,583 to 118,403 per sq.m
- Bannerghatta Road also posted an 18% increase
- Marathahalli and Tumkur Road followed closely with a 15% rise
This growth is not speculative. It is underpinned by tangible factors such as metro rail expansions, commercial developments, and a growing base of high-income professionals. For many homebuyers, paying a premium for a well-connected, future-ready home makes more sense than settling for a distant, budget property with fewer amenities.
Location Matters More Than Ever
Bengaluru’s real estate boom is not evenly distributed. Some zones are seeing far more activity—and price appreciation—than others. The data from H1 2025 shows that South Bengaluru led the market in both launches (38% of total) and sales (32% of total), thanks to established neighborhoods like Sarjapur Road, Kanakapura Road, and Electronic City.
East Bengaluru, long favored by IT professionals, accounted for 32% of launches and 34% of sales, with Whitefield and Marathahalli emerging as key nodes of growth. Both areas benefit from metro connectivity, proximity to tech parks, and strong social infrastructure.
North Bengaluru is rapidly gaining ground, contributing 27% of launches and 30% of sales. Areas like Thanisandra, Hebbal, and Yelahanka are benefiting from airport connectivity and planned infrastructure, including the Peripheral Ring Road.
On the flip side, West Bengaluru remains relatively inactive, with just 4% of sales, while Central Bengaluru recorded no new launches or sales due to land scarcity and saturation.
What the Inventory Tells Us
Total unsold inventory in Bengaluru stood at 61,030 units at the end of H1 2025, up 18% from H1 2024. However, the city’s QTS (Quarters to Sell) metric stayed stable at 4.4, suggesting healthy market absorption—especially in well-positioned mid- and high-end projects.
Interestingly, the average age of unsold inventory increased to 14.8 quarters, meaning much of the unsold stock is older and potentially less attractive. This further highlights the need for developers to focus on high-demand segments with modern features.
In contrast, new premium projects are moving quickly. The data shows that luxury units priced above INR 50 million have high QTS (100+ quarters), reflecting a niche market with limited traction. But for homes in the INR 10–50 million band, the turnover is significantly faster, indicating strong real-time demand.
Outlook: A More Balanced, Aspirational Market
The transformation underway in Bengaluru is not just about rising prices—it’s about a more mature and aspirational housing market. Homebuyers today are looking beyond affordability. They want quality, location, access, and comfort. Developers are responding by offering better-designed homes in emerging corridors with solid infrastructure backing.
The Knight Frank data tells a story of resilience and evolution. While affordable segments are cooling, the city’s real estate fundamentals remain strong. Rising disposable incomes, infrastructure investments, and continued growth of the IT and startup ecosystem are ensuring sustained housing demand, especially in the mid-premium category.
Buyers entering the market in H2 2025 and beyond would do well to focus on fast-growing corridors like Sarjapur Road, Whitefield, Panathur, Thanisandra, and Kanakapura Road, where pricing remains upward but justified by value. Investors, meanwhile, should track metro-enabled zones and new commercial hubs that promise long-term appreciation.
In conclusion, Bengaluru’s real estate market is moving into a new phase—one where “bigger and pricier” doesn’t just mean luxury, but smarter choices, better design, and long-term value. The city is no longer just India’s Silicon Valley; it’s fast becoming a benchmark for modern urban living.
Source: Knight Frank India
View Report: https://www.knightfrank.co.in/research/india-real-estate-office-and-residential-market-h1-2025-12239.aspx