Bengaluru’s housing market continues to show the kind of resilience that has made it one of India’s most stable real estate hubs. A new report by credit rating agency ICRA shows that the city posted a 14 per cent rise in sales volume during the first half of the current fiscal, touching 52 million sq ft. The numbers underline a simple truth the industry has repeated for years: tech cities rarely cool off for long.
ICRA’s assessment is based on data from PropEquity and its own research. The agency notes that sales during April to September reflect strong buyer appetite, especially in the mid-income and luxury categories. This isn’t a short-term spike. The firm expects demand to hold steady through the rest of the year, and projects another 3 to 5 per cent growth in FY26.
“Sales in the second half are expected to remain steady on a yearly basis, with the launch pipeline largely concentrated in the fourth quarter,” the agency said in its outlook.
Bengaluru’s position in the national landscape has grown steadily over the last five years. Among India’s top seven residential markets, the city accounted for 14 to 15 per cent of total area sold between FY21 and FY25. It sits behind the Mumbai Metropolitan Region (MMR) and Delhi-NCR in absolute scale, but its consistency and stable absorption rates often make it the bellwether for broader trends.
The annual numbers have moved within a narrow band. Bengaluru sold 102 million sq ft in FY24, slipping slightly to 99 million sq ft in FY25. Developers and consultants see this as a sign of consolidation rather than any real slowdown. Supply pipelines are better planned, demand is more predictable, and most new projects are being backed by organised, well-capitalised builders.
This shift is visible on the ground. Over the past two years, mid-income buyers have shown greater preference for gated communities with strong amenities and reliable execution timelines. At the upper end of the market, luxury homes continue to find takers among senior professionals, wealthy millennials, and returning NRIs.
Karishmah Siingh, President (Sales, Marketing and CRM) at Sattva Group, said 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.”
This shift toward “integrated living” has become one of Bengaluru’s strongest selling points. Buyers are looking for homes that cut down commuting time, offer community spaces, and provide predictable urban comforts in a city known for its traffic snarls.
Developers say the demographic mix entering the market is broadening. Young tech workers continue to form a large base, but the growing presence of global capability centres (GCCs) has brought in higher-salaried professionals from banking, consulting and engineering—deepening the pool of buyers with long-term housing plans.
“Bengaluru remains one of the most attractive destinations for real estate investment in India, driven by strong fundamentals, rapid urbanisation, consistent economic growth and a robust employment environment,” said Anjana Sastri, Director – Marketing at Sterling Developers. “The city’s thriving IT industry, its expanding start-up ecosystem and cosmopolitan appeal have ensured sustained interest from professionals, entrepreneurs and NRIs alike.”
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.
Ramji Subramaniam, Managing Director of Sowparnika Projects, said the city’s appeal goes beyond price appreciation. “Bengaluru continues to attract end-users, global investors and a growing migrant workforce looking for quality of life and long-term value,” he said.
Industry analysts also point out that affordability, while not what it was five years ago, still compares better to Mumbai, NCR or even Hyderabad in certain micro-markets. That gives Bengaluru an edge, especially for mid-career professionals and families upgrading from rentals.
The role of institutional developers has strengthened as well. Buyers are choosing firms with strong track records and predictable execution cycles. Smaller builders continue to operate, but the market tilt towards financially solid companies is now clearer.
Bhavesh Kothari, Founder and CEO of Property First, sees that shift as a sign of maturity. “The consistent momentum in mid-income and luxury housing reflects rising disposable incomes and a decisive shift towards organised, well-capitalised developers who prioritise execution certainty and long-term value,” he said.
As India’s broader economic narrative continues to lean on services, technology and urban consumption, Bengaluru’s housing market remains firmly positioned to ride the next decade of growth. The city’s mix of talent, jobs and lifestyle keeps pushing its boundaries outward, while steady buyer confidence ensures demand rarely softens for long.
The numbers from the first half of the year show that Bengaluru’s housing market isn’t simply holding up—it is quietly strengthening its role as one of the country’s most reliable real estate centres, even as other cities swing between boom and correction.
