Bengaluru Luxury Housing Slows Amid Tech Layoffs

Largely immune to economic fluctuations in the past, Bengaluru's luxury housing segment is now showing signs of slowdown, with builders launching out-of-the ordinary discounts and flexible payment plans to entice buyers. In the face of widespread layoffs in the tech industry and increasing financial restraint, some builders are launching 25:75 schemes, 25 percent cash upfront and 75 percent on possession, a practice unheard of in the Rs.2.5 crore-and-more category.

This change occurs as Bengaluru housing sales fell 8 percent year-on-year in Q2 2025, despite prices increasing 12 percent, as per ANAROCK. 

"Following a phase characterized by aggressive launches and peak sales, developers are now showing a more cautious and quality-oriented approach. The focus has changed to completing existing projects instead of introducing new supply.”  stated Anuj Puri, chairman at ANAROCK Group.

Key highlights:

• Bengaluru's luxury housing sales fell 8 percent in Q2 2025, prompting developers to offer rare 25:75 payment schemes and upfront discounts
• Prestige Group and others are shifting focus to the Rs.2 to 3 crore mid-premium segment amid changing buyer preferences and financial caution
• Despite oversupply in areas like Whitefield, core locations like Indiranagar and Koramangala continue to attract strong NRI and HNI demand

Prestige Group, one of the large developers, is now shifting focus towards the Rs.2–3 crore mid-premium segment to address changing demand. "This year's pivot is a conscious shift toward mid-segment housing, which is still witnessing robust demand, particularly in tech cities like Bengaluru and Hyderabad," said Praveer Srivastava, Senior Vice President at Prestige Group.

Job insecurity is being a key driver of buyer reluctance. "Post-COVID, HNIs and NRIs had desired larger homes, but redundancies and tech anxiety have set off financial prudence," said Nomaan Ellahi of Square Yards' Nomaan Ellahi. "The premium segment's decision-making cycle has become substantially longer. Buyers are more thoughtful and harder negotiators.” Added Vivek Rathi Knight Frank India.

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While markets like Whitefield are facing oversupply and price challenges, core markets like Indiranagar and Koramangala continue to witness strong traction, particularly from non-local HNIs and NRIs. Experts concur that the Rs.80 lakh to Rs.1.5 crore segment is the most resilient, led by salaried professionals.

"Luxury is still intact," Rathi averred. "It creates brand equity and brings in marquee buyers, even if demand today is more tempered."