Bengaluru Housing Market Growth Strengthens Amid Stable Demand

Bengaluru’s housing market continues to demonstrate strong resilience, with ICRA reporting a 14 percent rise in sales volume during the first half of the fiscal year, reaching 52 million sq ft.

Based on PropEquity data and ICRA’s own research, the city’s demand remains particularly strong in mid-income and luxury segments.

ICRA expects this momentum to continue through the year, projecting 3–5 percent growth in FY26. Over the past five years, Bengaluru has held a 14–15 percent share of total sales across India’s top seven residential markets, trailing only MMR and Delhi-NCR.

Despite sales dipping slightly from 102 million sq ft in FY24 to 99 million sq ft in FY25, experts view this as consolidation supported by better-planned supply and strong developer balance sheets.

Demand trends show mid-income buyers preferring gated communities with amenities, while luxury housing remains steady among professionals, millennials, and NRIs.

Key Highlights

• Bengaluru posts a 14 percent surge in housing sales, reaching 52 million sq ft in H1.
• City maintains a 14–15 percent national market share, reinforcing its stability.
• Demand driven by mid-income gated communities and rising luxury home buyers.

Karishmah Siingh, President (Sales, Marketing and CRM) at Sattva Group says,

“The city’s housing story continues to be tied closely to its economic engine. “The demand is driven by the growth of the IT sector and also the vibrant startup ecosystem,” she said. “As the IT and GCC sectors expand, they are shaping new patterns of homeownership built around proximity, lifestyle and long-term security. Families are seeking integrated communities that support both professional and personal well-being.”

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Anjana Sastri, Director – Marketing at Sterling Developers says,

“Bengaluru remains one of the most attractive destinations for real estate investment in India, driven by strong fundamentals, rapid urbanization, consistent economic growth and a robust employment environment”.

Ramji Subramaniam, Managing Director of Sowparnika Projects says,

Developers working in peripheral markets have also noticed the rise of end-user demand. Whether it's Sarjapur, North Bengaluru, Kanakapura Road or the ORR-Whitefield belt, absorption rates have stayed healthy even as prices have risen. For many buyers, the city’s reputation as India’s AI and tech capital remains a pull factor on its own.

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Bhavesh Kothari, Founder and CEO of Property First states, “The consistent momentum in mid-income and luxury housing reflects rising disposable incomes and a decisive shift towards organized, well-capitalized developers who prioritize execution certainty and long-term value”.