Bengaluru's Housing Market Surges 21% in Q3: A Thriving Real Estate Boom
While India's top cities face a 4% decline in housing sales, Bengaluru's real estate market is booming, driven by genuine end-user demand and a thriving economic ecosystem. Sales are expected to grow by 21% in the July-September quarter.
BengaluruReal EstateHousing SalesIt SectorEconomic GrowthReal Estate MumbaiSep 28, 2025
As per the PropEquity data, India's top 9 cities are likely to witness a 4% 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% in July-September, reaching 16,840 units. This is a considerable increase compared to the 13,966 units sold in the same period last year, reported PTI.
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. 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, noted PTI.
On the other hand, the total housing sales across nine cities are estimated to fall 4% to 1,00,370 units during the July-September 2025 period 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: Karishmah Siingh, Bengaluru-based Sattva Group's President of Sales, Marketing & CRM, said that the boom is driven by genuine homebuyers, making the growth “exceptionally sustainable.”
IT and corporate hub: 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.
End-users: Umesh Gowda H.A, Sanjeevini Group Chairman and Founder, noted that the demand is primarily driven by end-users, particularly those working in the IT sector and startups.
Lifestyle and infrastructure: Anjana Sastri, Director - Marketing of Sterling Developers, highlighted a combination of economic, social, and lifestyle factors. These include employment opportunities, cosmopolitan appeal, high rental yields of residential (for both residential and commercial properties) and infrastructure development, which have transformed micro-markets into urban centers.
Frequently Asked Questions
What is driving the surge in Bengaluru's housing market?
The surge in Bengaluru's housing market is driven by genuine end-user demand, a thriving IT and startup ecosystem, and various economic, social, and lifestyle factors such as employment opportunities, cosmopolitan appeal, and infrastructure development.
How much is the expected growth in housing sales in Bengaluru for July-September 2025?
Housing sales in Bengaluru are expected to grow by 21% in the July-September 2025 quarter, reaching 16,840 units.
What is the expected impact of the festive season on Bengaluru's housing market?
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.
How has Bengaluru's housing market performed since the COVID pandemic?
Bengaluru's housing market has shown resilience since the COVID pandemic year 2020, with sales increasing from 34,480 units in 2020 to 43,181 units in 2021 and 60,391 units in 2022.
What are the key factors contributing to the demand for housing in Bengaluru?
Key factors contributing to the demand for housing in Bengaluru include genuine homebuyers, the city's position as an IT and corporate hub, end-users from the IT sector and startups, and a combination of economic, social, and lifestyle factors such as employment opportunities, cosmopolitan appeal, and infrastructure development.
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