Bengaluru recorded the highest price growth in Q1 2025, with rates surging 16% to ₹7,116 per sq ft. “The ₹50 lakh– ₹1.5 crore segment has seen lower participation, but this trend may reverse in the next period. Looking ahead, how pricing and supply will evolve remains a key question,” Vivek Rathi, Head of Research at Knight Frank India, told HT.com on the sidelines of the report launch.
A key concern is the job market’s impact, particularly in the IT sector, which has long been the backbone of Bengaluru’s housing demand.
“In cities like Bengaluru and Delhi NCR, strong employment generation across various sectors is expected to play a significant role in future growth. However, employment uncertainties have created some disruptions. While prices have risen, sales have declined, leading to a moderation in several markets,” Rathi said.
Rathi said that supply in the ₹50 lakh ₹1.5 crore segment has also been shrinking, highlighting the need for more development to meet customer demand. “Inventory levels have continued to decline, which is not ideal, as developers are focusing more on higher-priced categories. If more supply enters the ₹50 lakh – ₹1 crore range, there will likely be strong demand and take-ups.”
Also Read: Over 88,000 housing units sold in Q1 2025 across eight cities with Pune and Chennai leading residential sales volume: KF
₹5-10 crore segment recorded the highest growth in January- March in Bengaluru
The report highlighted that Bengaluru’s ₹5-10 crore residential segment saw the highest YoY sales growth in Q1 2025, soaring 133% from 80 units in Q1 2024 to 187 units.
Rathi noted that this segment has largely been driven by wealth creation among startup entrepreneurs and senior and mid-level employees who have benefited from rising opportunities. Establishing several GCCs in Bengaluru, particularly in the BFSI sector, has further fueled demand. However, third-party IT services have seen relatively lower participation in this segment.
Moreover, a significant share of buyers are not first-time homeowners but are upgrading to better properties, either by selling their existing homes or reinvesting their wealth, he added.
The ₹1-2 crore segment recorded 4,507-unit sales, reflecting a modest 3% growth, while new launches in this category surged by 36% YoY to 6,765 units, the report showed.
Also Read: Housing sales in Q1 2025 set to drop 23% amid high prices and geopolitical uncertainty
In contrast, the super-luxury ₹10-20 crore segment saw a sharp decline, with sales dropping by approximately 65% YoY to just five units.
Overall, across the top eight cities, as many as 88,274 residential units were sold across eight major cities in the January to March period leading to a 2% YoY increase in consumer demand with Pune and Chennai leading the primary sales volume with 20% and 10% YoY growth respectively, the report added.
