Bengaluru Defies Trend: Mid-Premium Housing Demand Surges
Bengaluru’s real estate market is witnessing a significant shift towards mid-premium housing, with strong demand for properties priced between ₹1 crore and ₹4 crore. This trend is driven by consumer preferences and a stabilizing market.
BengaluruReal EstateMidpremium HousingLuxury HousingSattva GroupReal Estate NewsJul 08, 2025
To meet this rising demand, Sattva Group plans to launch 9 million sq ft of mid-premium housing and select luxury projects in key growth corridors such as Mysuru Road and Old Madras Road. The company is also preparing to launch an additional project in the airport corridor and further expansions are planned across key growth zones, including a 1 million sq ft development on Mysuru Road and a 1.2 million sq ft project on Old Madras Road, scheduled to launch between June and September this year.
The real estate sector in Bengaluru is largely a consumer-driven market, not dominated by investors. Most of the demand seen is not speculative. NRIs are coming in a big way, especially to Bengaluru and Hyderabad. For most NRIs, Bengaluru is the first choice due to its status as a startup hub, a tech capital, and a truly cosmopolitan city. Here, luxury housing demand remains limited, largely due to low supply in that segment. What we consistently see is strong demand in the mid and upper-mid segments, according to Agarwal.
Property prices in the city have surged by 40–60% over the past two years, but a more moderate 20% increase this year suggests a stabilizing market. In Bengaluru, over the last 2-3 years, property prices have gone up by 40–60%. This year, the increase is around 20-25%, and the growth rate has begun to stabilize with a gradual increase in prices. We’re seeing a slight deceleration in the rate of price growth this year, and the market is maturing, which is actually a healthy sign, Agarwal said.
Sattva Group has already launched a residential project near Kempegowda International Airport and another large-scale development in North Bengaluru spanning 5.9 million sq ft and comprising 3,900 flats. The company plans to develop premium to luxury residential projects, sprawling 9 million sq ft, with ticket sizes between 1-4 crore in western parts of the city, like Mysuru Road and Old Madras Road, in the west and eastern parts of the city.
Overall, Sattva Group plans to clock ₹6,000 crore in home sales for FY26, up from ₹3,500 crore in the previous fiscal. The real estate developer plans to launch around 18 million sq ft of residential space by the end of the financial year across key cities including Bengaluru, Hyderabad, and Goa. Of this, 2.3 million sq ft has already been launched, while more than 11 million sq ft is currently under construction. To date, the company has delivered over 31 million sq ft of homes across about 50 residential projects across cities. The steady year-on-year growth is being driven by a combination of strong project execution and timely launches in high-demand micro-markets.
This year, Sattva Group expanded its footprint into Mumbai and is set to launch a project in the first quarter of the next financial year in south Mumbai, with land acquisition already completed. This upcoming development will cater to the luxury segment, with homes priced between ₹4 crore and ₹8 crore. Hyderabad will see 5–6 million sq ft of luxury and ultra-luxury launches later this year. According to Agarwal, the company is targeting prime micro-markets like Kokapet and HITEC City, driven by robust infrastructure, a thriving IT ecosystem, and strong demand from both NRIs and domestic buyers. These factors make the region an attractive destination for high-end residential investment.
In Goa, a market that Agarwal considers a niche but a promising luxury destination, the company is following up on its recently launched phase 2 of the villa project with two more projects in the pipeline, one plotted development and an apartment project. These new projects are expected to launch within the next 6-8 months.
Frequently Asked Questions
What is the current trend in Bengaluru's real estate market?
Bengaluru's real estate market is witnessing a significant shift towards mid-premium housing, with strong demand for properties priced between ₹1 crore and ₹4 crore.
What are the key growth corridors for mid-premium housing in Bengaluru?
Key growth corridors for mid-premium housing in Bengaluru include Mysuru Road and Old Madras Road.
How much has property prices increased in Bengaluru over the past two years?
Property prices in Bengaluru have surged by 40–60% over the past two years, with a more moderate 20% increase this year.
What are Sattva Group's plans for FY26?
Sattva Group plans to clock ₹6,000 crore in home sales for FY26, up from ₹3,500 crore in the previous fiscal. The company aims to launch around 18 million sq ft of residential space across key cities including Bengaluru, Hyderabad, and Goa.
What new projects is Sattva Group planning in Mumbai and Hyderabad?
Sattva Group is set to launch a luxury project in south Mumbai, with homes priced between ₹4 crore and ₹8 crore. In Hyderabad, the company plans to launch 5–6 million sq ft of luxury and ultra-luxury projects in prime micro-markets like Kokapet and HITEC City.
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