Bengaluru Surges in Q2 2025 with 15,100 Home Sales, Capturing 16% of India's Housing Demand
Bengaluru's residential real estate market continues to thrive in Q2 2025, recording 15,100 home sales and capturing 16% of the total housing demand across India's top seven cities. The steady momentum is driven by strong end-user and investor commitment, supported by growth in IT, infrastructure, and lifestyle improvements.
BengaluruReal EstateHousing DemandMicromarketsInfrastructureReal Estate NewsSep 28, 2025
The performance of Bengaluru’s residential real estate market is underpinned by strong end-user and investor commitment, bolstered by growth in IT, infrastructure developments, and lifestyle improvements. These factors have made key micro-markets in the city stand out in terms of capital appreciation, rental stability, and investment opportunities.
Performance of Bengaluru’s Residential Real Estate Key Micro Markets
- Launches: 15,350 units, a 26% decrease quarter-over-quarter, indicating a strategy to soak up existing supply.
- Sales: 15,100 units, a 1% increase from the previous quarter, clearly showing consistent end-user and investor commitment.
- Available Supply: 58,900 units, unchanged quarter-over-quarter, which indicates a stable market.
- Average Quoted Price: ₹8,720/sf, confirming the premiumization trend across the region.
Micro-Market Performance at a Glance
1. Electronic City
- Rental Values: ₹20,000 – ₹30,000/month for a 2 BHK configuration, with no increase from Q1 to Q2 2025, cementing its position as a rental hot spot.
- Capital Values: ₹6,850/sf, a 1% increase from the prior quarter.
- Outlook: Short-term stable growth, of interest to IT employees in search of affordable accommodation.
2. Whitefield
- Rental Values: ₹29,500–₹43,000/month, up 1% in Q2, indicating a continuing demand for rental accommodation from technology professionals and Non-Residential Indians (NRIs).
- Capital Values: ₹9,950/sf, showing a significant quarter-on-quarter growth of 3%.
- Short-term Outlook: Strong, as the increase in infrastructure and metro connectivity, together with improving social amenities, continues to drive capital and rental value appreciation.
3. Sarjapur Road
- Rental Values: ₹31,000–₹46,000/month, the highest increase of all major micro-markets at 2% quarter on quarter.
- Capital Values: ₹10,800/sf with a 3% increase over Q2, representing strong buyer interest and activity, with many new launches.
- Short-term Outlook: Strong, as large projects and township developments continue to prompt both investors and families to explore Sarjapur Road.
4. Thanisandra Main Road
- Rental Values: ₹27,000–₹41,000/month, with a 1% total increase in the last quarter.
- Capital Values: ₹9,500/sf, with a quarterly increase of 3%.
- Short-term Outlook: Positive; continued demand for properties for ownership and investment by owners and tenants is expected due to ongoing infrastructure upgrades, proximity to business parks, and new schools and social amenities.
5. Mysore Road
- Rental Values: ₹19,500–₹26,000/month, a stable increase of 1% from the previous quarter.
- Capital Values: ₹7,450/sf, with a 1% increase in capital values in Q2.
- Short-term Outlook: Positive; growing demand for both rental and end-user demand as affordability improves, and metro continues to enhance connectivity.
Major Project Launches
- Prestige Southern Star (Akshaya Nagar): 2,130 units, quoted at ₹11,500/sf.
- Godrej MSR City Barca (Shetiggere): 1,961 units, quoted at ₹10,999/sf.
- Sattva Vasanta Skye (Devanahalli): 1,077 units, quoted at ₹11,000/sf.
These larger launches demonstrate developer confidence in these growth corridors, especially in the south and northern areas of Bengaluru.
What’s Fueling Market Growth?
- Strong Demand: Despite a decrease in new launches, sales remain robust as buyers race to secure pricing in light of rising costs.
- Rental Stability: Rents are rising consistently, especially in tech-centric corridors, which is favorable for investors.
- Capital Appreciation: Important micro-markets are achieving 1–3% price gains on a quarterly basis, exceeding inflation.
- Infrastructure Development: Ongoing metro rail extensions, new roads, and improved social amenities in the suburbs are making micro-markets more attractive.
- Balanced Supply: Inventory remains high but within healthy levels, ensuring no oversupply and price stabilization.
Outlook on Residential Micro-Markets
- All these micro-markets show stable to increasing short-term growth based on the strength of IT, infrastructure, and lifestyle improvements.
- Investors can enjoy not only capital appreciation but also rising rental yields.
- The 2025 buyer values location, ease of commute, amenities, and future appreciation more than affordability alone.
Bengaluru, India’s tech hub, saw 14,639 new housing units launched in Q2 2025, down from 24,667 in Q1, with the Southeast and Northeast corridors driving 13,572 sales. 3 BHK units accounted for 52% of demand. While inventory overhang has risen, it remains within healthy levels.
Conclusion
Bengaluru is emerging as India’s most investment-friendly city for residential real estate, led by Whitefield, Sarjapur Road, Thanisandra Main Road, Electronic City, and Mysore Road. These micro-markets bring together the ideal elements for growth, stability, and potential for the future, suitable for tech professionals, families, and smart investors. As the city moves forward with continued infrastructure and job growth, Bengaluru is uniquely positioned to deliver value in residential markets throughout 2025 and beyond.
Frequently Asked Questions
What is the current housing demand in Bengaluru?
Bengaluru recorded 15,100 home sales in Q2 2025, capturing 16% of the total housing demand across the top seven Indian cities.
Which micro-markets in Bengaluru are performing well?
Key micro-markets like Whitefield, Sarjapur Road, Thanisandra Main Road, Electronic City, and Mysore Road are performing well, showing strong capital appreciation and rental stability.
What factors are driving the growth in Bengaluru's real estate market?
The growth is driven by strong demand, rental stability, capital appreciation, infrastructure development, and balanced supply.
What are the major project launches in Bengaluru recently?
Notable projects include Prestige Southern Star, Godrej MSR City Barca, and Sattva Vasanta Skye, all with significant unit counts and competitive prices.
What is the outlook for Bengaluru's residential real estate in the short term?
The outlook is positive, with stable to increasing growth in key micro-markets, driven by IT, infrastructure, and lifestyle improvements.
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