Bengaluru Resale Home Sales Surge 26% as New Launches Decline

A tightening supply of affordable new homes and shrinking mid-segment apartment sizes have pushed Bengaluru homebuyers toward the secondary market, leading to a 26 per cent surge in resale transactions in 2025. Resale listings rose 19 per cent during the year, driven by a wave of investor exits and strong demand for larger, ready-to-occupy units at competitive price points, according to a report.

“Homeowners who bought before 2021 are now sitting on meaningful appreciation, and many are choosing to monetise those gains. For buyers, resale homes offer a compelling alternative with more reasonable pricing, established neighbourhoods, and faster possession, especially in a market where new supply is skewed toward the higher end,” Saurabh Garg, chief business officer of NoBroker, said.

Early investors who entered between 2020 and 2023 are now liquidating units at substantial gains, often between 60 per cent and 80 per cent, driving a surge of quality, ready-to-move inventory into the market, the NoBroker report has said.

Areas such as Sarjapur Road and Bellandur, where new launches in 2020–21 were priced at ₹3,500–₹4,500 per sq ft, are now commanding ₹10,000–₹11,000 per sq ft in the resale segment. Similar appreciation patterns are visible in Gachibowli, Hyderabad, and Wagholi, Pune, Garg said.

Garg noted that a slowdown is emerging in the higher-end segment, as buyers are taking longer to decide amid surging prices and abundant options. “In contrast, the ₹1–3 crore bracket is seeing a surge in resale listings, driven by investors exiting earlier cycles. Units that originally launched in the ₹90 lakh–₹1.5 crore range have now reached parity with new inventory priced between ₹1.5 crore and ₹3 crore,” he said.

Buyers are increasingly weighing whether to pay ₹2 crore for a new launch with a 2–3-year wait or opt for a similarly priced or cheaper resale unit with immediate possession. “In Bangalore, close to Sarjapur Road, new homes are ₹12,000 per sq ft with 3–4 years for possession. At the same time, similar or even lower-priced resale apartments are available. Now it is a seller’s market, as people who bought earlier are seeing major appreciation today,” Garg said.

The eastern IT corridor accounted for nearly 30 per cent of all resale transactions in 2025, making it the most active micro-market. NoBroker’s report said resale homes continued to outperform in buyer preference due to immediate delivery, established amenities, and a stronger price-to-value advantage. Demand remained particularly strong in gated communities with robust maintenance and occupancy levels, helping drive resale values further upward.

Experts said resale homes have gained rapid traction as a more practical and cost-efficient choice for budget-sensitive buyers who are increasingly priced out of new launches. With immediate possession, larger layouts, and a stronger price-to-value advantage, the resale segment became the preferred choice for mid-segment homeownership in Bengaluru.

The Nobroker report said that East Bengaluru’s new-launch market share has declined sharply from 60% in 2023 to 48% in 2024 and further to 43% in 2025, accompanied by a 16% year-on-year drop in unit supply in 2025.

“Developable land in core East Bangalore, Whitefield, Sarjapur Road, and KR Puram, is now severely constrained. Parcels are fragmented, expensive, and difficult to consolidate. The inability to acquire large, unified plots has capped developers’ ability to launch mega-projects (with over 500 units). This has compressed launch scale and diverted developer activity toward other zones,” it said.

The corridor is transitioning from launch-driven growth to a resale-dominant market. The supply contraction in East Bangalore is directly boosting resale activity because fewer new launches mean limited fresh inventory for buyers who prefer ready or near-ready options, the report pointed out.

Real estate experts said a significant share of buyers seeking homes under ₹1 crore are effectively priced out of Bengaluru’s market, as developers do not prioritise this segment. Over 42% of prospective buyers in the sub-₹1 crore segment are no longer able to purchase a home amid a steep rise in property prices. This comes even as demand for budget housing in the segment rose 13% year-on-year, the report pointed out.

This comes at a time when Bengaluru’s residential property prices have surged by nearly 12% year-on-year in 2025, to ₹7,388 per sq ft on average, according to data by Knight Frank. Experts said developers are prioritising premium, higher-margin projects to offset rising land prices and protect profitability. This strategic shift is shrinking the availability of homes priced below ₹1 crore, particularly in prime, city-centric locations, while pushing the majority of buyers towards resale or the secondary real estate market.