Bengaluru Housing Market Sees 8% Sales Drop in Q2 2025 Despite 12% Price Increase
Bengaluru's real estate market witnessed an 8% decline in housing sales in Q2 2025, while property prices surged by 12%. The dip is attributed to affordability concerns and global economic uncertainties.
BengaluruReal EstateHousing SalesProperty PricesMarket TrendsReal EstateJul 19, 2025
The report attributed the dip in sales to affordability concerns driven by sustained price hikes through FY2024, which have prompted greater caution among both homebuyers and investors amid ongoing global uncertainties. Developers are expected to recalibrate new launches and pricing strategies, with the aim of restoring balance in the market by late 2025.
Market momentum moderated amid continuous price hikes in FY2024 that made homes less affordable, leading buyers and investors to be more cautious, especially given global uncertainties.
After a period marked by aggressive launches and record sales, developers are now exhibiting a more cautious and quality-focused approach. This quarter, the emphasis has noticeably shifted to completing ongoing projects and refining delivery standards rather than aggressively adding to supply, Anuj Puri, chairman of ANAROCK Group, said.
Bengaluru saw a 30% year-on-year increase in available inventory, the steepest jump among the top 7 Indian cities, with the number of units rising to 58,900 from 45,400 units last year. New launches in Bengaluru declined by 26% quarter-on-quarter, from 20,850 units in Q1 to 15,350 in Q2 2025. The report said this marks a strategic pause as builders focus more on clearing existing inventory and completing under-construction projects rather than adding fresh supply.
Despite the moderation in sales, Bengaluru recorded a strong 12% annual rise in base selling prices, reaching an average of ₹8,720 per sq ft. This makes it the second-highest price gain among the top metros after NCR (27%), pushing affordability beyond the reach of many buyers and ultimately dampening demand across segments, the report said.
Luxury (₹1.5–2.5 crore) and ultra-luxury (₹2.5 crore and above) housing segments saw increased activity in Bengaluru. The share of ultra-luxury homes in new launches rose from 10% to 14% over the quarter, reflecting rising demand from buyers, NRIs, and professionals upgrading post-pandemic.
At the same time, affordable housing (under ₹40 lakh) was almost missing from the new launch mix, as developers continue to prioritize higher-margin segments amid rising land and construction costs. This has made it more difficult for first-time homebuyers to enter the market, further impacting sales in lower budget brackets, the report said.
The report suggests that, like several top cities, Bengaluru’s real estate market is moving toward a phase of recalibration. Market momentum has moderated as sustained price hikes in FY2024 impacted affordability, prompting caution among buyers and investors amid global uncertainties. Developers are likely to recalibrate launches and pricing, aiming for more balanced conditions by late 2025.
Frequently Asked Questions
What is the main reason for the decline in housing sales in Bengaluru?
The main reason for the decline in housing sales in Bengaluru is the affordability concerns driven by sustained price hikes through FY2024, which have made homes less affordable for many buyers.
How much did property prices increase in Bengaluru in Q2 2025?
Property prices in Bengaluru increased by 12% in Q2 2025 compared to the same period last year.
What is the current inventory situation in Bengaluru's real estate market?
Bengaluru saw a 30% year-on-year increase in available inventory, with the number of units rising to 58,900 from 45,400 units last year.
How are developers responding to the current market conditions?
Developers are focusing more on completing ongoing projects and refining delivery standards rather than aggressively adding to supply. They are also recalibrating their launches and pricing strategies to restore balance in the market by late 2025.
What segments of the housing market are seeing increased activity in Bengaluru?
The luxury (₹1.5–2.5 crore) and ultra-luxury (₹2.5 crore and above) housing segments are seeing increased activity in Bengaluru, with the share of ultra-luxury homes in new launches rising from 10% to 14% over the quarter.
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