Bengaluru's Housing Market Surges 14%: ICRA Report Highlights Strong Demand
Bengaluru's housing market has witnessed a remarkable 14% growth in sales volume to 52 million square feet during the first half of this fiscal year, as reported by credit rating agency ICRA. This strong demand is expected to continue, with the agency projecting a 3-5% increase in sales during the 2025-26 fiscal year.
The rating agency noted that the Bengaluru residential real estate market has already seen a significant uptake in the first half of this fiscal year. The area sold stood at 52 million square feet during the April-September period, marking a 14% year-on-year growth.
ICRA stated, 'Sales in the second half are expected to remain steady on a yearly basis, with the launch pipeline largely concentrated in the fourth quarter.' The agency attributes the projected growth to sustained demand in the mid-income and luxury segments.
Bengaluru, the fourth largest residential market among India's top seven cities, accounted for 14-15% of the total area sold across these seven metros between FY21 and FY25. In the 2023-24 fiscal year, sales volumes stood at 102 million square feet, but they fell marginally in FY25 to 99 million square feet.
The report, based on data from PropEquity and ICRA Research, also highlights the top seven cities in India's real estate market, including the Mumbai Metropolitan Region (MMR), Delhi-NCR, Hyderabad, Pune, Kolkata, and Chennai.
Karishmah Siingh, President of Sales, Marketing, and CRM at Bengaluru-based Sattva Group, commented on the demand trend. 'The demand is driven by the growth of the IT sector and a vibrant startup ecosystem. As the IT and GCC sectors expand, they are shaping new patterns of homeownership built around proximity, lifestyle, and long-term security. Families are seeking integrated communities that support both professional and personal well-being, signalling a more mature and resilient housing market.'
Anjana Sastri, Director of Marketing at Sterling Developers, noted that Bengaluru remains one of the most attractive destinations for real estate investment in India. 'Driven by strong fundamentals, rapid urbanisation, consistent economic growth, and a robust employment environment, Bengaluru's thriving IT industry and expanding startup ecosystem ensure sustained interest from professionals, entrepreneurs, and NRIs alike.'
Ramji Subramaniam, Managing Director of Sowparnika Projects, added that Bengaluru, as India's AI and tech capital, continues to attract end-users, global investors, and a growing migrant workforce looking for quality life and long-term value.
Bhavesh Kothari, Founder & CEO of Property First, highlighted, 'The consistent momentum in mid-income and luxury housing reflects not only rising disposable incomes but also a decisive shift towards organised, well-capitalised developers who prioritise execution certainty and long-term value.'
