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Bengaluru's residential market saw a 14 per cent rise in sales earlier this fiscal, with 52 million sq ft sold between April and September, according to ICRA. The agency expects similar momentum in the year's second half, with most new launches slated for the final quarter. For FY26, sales volumes are projected to grow 3-5 per cent, supported by steady mid-income and luxury housing demand. As India's fourth-largest residential market, Bengaluru contributed 14-15 per cent of total sales across the top seven cities. Industry executives attribute the city's strong appeal to its expanding IT sector, start-up ecosystem, urbanisation, and rising interest from NRIs, investors, and end-users.
Bengaluru's residential market experienced a 14 per cent increase in sales volumes earlier this fiscal, reaching 52 million sq ft, supported by continued buyer interest, as reported by credit rating agency ICRA. The agency assessed that the city had already shown firm traction in the first half of the ongoing fiscal, based on demand patterns captured between April and September. Advertisement
Area sold during this period stood at 52 million sq ft, marking a year-on-year rise of 14 per cent. ICRA mentioned that sales in the second half of the fiscal were expected to maintain similar momentum on an annual basis, noting that most new launches were likely to be concentrated in the final quarter.
Looking ahead, the agency projected a 3-5 per cent increase in sales volume during the 2025-26 fiscal, largely driven by sustained appetite in the mid-income and luxury housing segments. It added that Bengaluru, ranked as the fourth-largest residential market among India's top seven cities, contributed 14-15 per cent of total area sold across these markets between FY21 and FY25.
While sales volumes had touched 102 million sq ft in 2023-24, they saw a marginal decline to 99 million sq ft in FY25, based on data compiled by PropEquity and ICRA Research. The seven major markets under review included the Mumbai Metropolitan Region, Delhi-NCR, Bengaluru, Hyderabad, Pune, Kolkata, and Chennai.
Sharing views on demand trends, Karishmah Siingh, President - Sales, Marketing and CRM at Sattva Group, remarked that demand continued to be supported by Bengaluru's expanding IT sector and its vibrant start-up ecosystem. Siingh observed that as the IT and Global Capability Centre sectors grow, homeownership patterns are increasingly influenced by proximity, lifestyle considerations, and a desire for long-term security, with families seeking integrated communities that balance professional and personal needs.
Anjana Sastri, Director - Marketing at Sterling Developers, stated that Bengaluru remains a highly attractive real estate market owing to its strong economic fundamentals, rapid urbanisation, steady employment creation, and overall cosmopolitan environment. She pointed out that the city's thriving IT industry, expanding start-up network, and multicultural appeal continued to draw professionals, entrepreneurs, and NRIs.
Ramji Subramaniam, Managing Director of Sowparnika Projects, mentioned that Bengaluru's growing profile as India's AI and technology hub was pulling in end-users, global investors, and a rising migrant workforce seeking quality living and long-term value.
Bhavesh Kothari, Founder and CEO of Property First, indicated that persistent demand in the mid-income and luxury categories reflected higher disposable incomes and a clear shift towards organised developers known for execution certainty and value-driven projects.
As larger, well-capitalised developers expand their presence and new launches cluster towards year-end cycles, the market is likely to evolve further, redefining what homebuyers expect in one of India's most dynamic property destinations.
Source - PTI
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