Bengaluru Real Estate Market Surges: Housing Sales Expected to Rise 21% in Q3 2025
Bengaluru's housing market is experiencing a significant boom, with housing sales projected to grow by 21% in the July-September quarter of 2025, driven by genuine end-user demand and a thriving economic ecosystem.
Real EstateHousing MarketBengaluruIt SectorFestive SeasonReal EstateSep 28, 2025
As per the PropEquity data, India's top 9 cities are likely to witness a 4 per cent decline in housing sales in the quarter ending September, mainly due to lower demand in the Mumbai region and Pune.
The housing sales in the ‘Silicon Valley’ of India are estimated to rise by 21 per cent in July-September, reaching 16,840 units. This is a considerable increase compared to the 13,966 units sold in the same period a year ago. During the January-September period of 2025, sales of residential properties are likely to climb to 49,559 units, up from 46,392 units in the corresponding period of the preceding year.
Real estate developers anticipate that the festive season will further boost sales in Bengaluru during the fourth quarter of this calendar year, ensuring the year closes on a strong note. This outlook follows a dip in the 2024 calendar year, where sales stood at 61,116 units, down from 66,600 in 2023.
The market has shown resilience since the COVID pandemic year 2020, when sales stood at only 34,480 units. However, the demand revived in subsequent years due to pent-up demand, with sales increasing to 43,181 units in 2021 and 60,391 units in the 2022 calendar year.
On the other hand, the total housing sales across nine cities are estimated to fall 4 per cent to 1,00,370 units during the July-September 2025 as against 1,05,081 units in the year-ago period.
Industry experts attribute Bengaluru's robust demand to several factors such as its strategic position, genuine end-users, and various economic, social, and lifestyle factors. Genuine homebuyers are a key driver, making the growth “exceptionally sustainable,” according to Karishmah Siingh, President of Sales, Marketing & CRM at Sattva Group in Bengaluru.
The city's position as a preferred destination for multinationals and GCCs, along with a thriving IT and startup ecosystem, creates massive demand for quality housing. Umesh Gowda H.A, Chairman and Founder of Sanjeevini Group, noted that the demand is primarily driven by end-users, particularly those working in the IT sector and startups.
Anjana Sastri, Director of Marketing at Sterling Developers, highlighted a combination of economic, social, and lifestyle factors. These include employment opportunities, cosmopolitan appeal, high rental yields for both residential and commercial properties, and infrastructure development, which have transformed micro-markets into urban centers.
Overall, the robust demand and favorable conditions in Bengaluru's housing market are expected to continue, driven by the city's unique blend of economic and lifestyle advantages.
Frequently Asked Questions
What is driving Bengaluru's housing market growth?
Bengaluru's housing market growth is driven by genuine end-user demand, a thriving IT and startup ecosystem, and various economic, social, and lifestyle factors.
How much are housing sales expected to grow in Bengaluru in Q3 2025?
Housing sales in Bengaluru are expected to grow by 21% in the July-September quarter of 2025, reaching 16,840 units.
What are the key factors contributing to the demand in Bengaluru?
Key factors include genuine homebuyers, the city's position as an IT and corporate hub, employment opportunities, cosmopolitan appeal, high rental yields, and infrastructure development.
How did the market perform in 2020 during the COVID pandemic?
In 2020, the market saw a significant dip with sales standing at only 34,480 units, but it has since recovered due to pent-up demand.
What is the outlook for the fourth quarter of 2025?
Real estate developers anticipate that the festive season will further boost sales in Bengaluru during the fourth quarter of 2025, ensuring the year closes on a strong note.
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