Bengaluru's Housing Market Surges with 15,100 Home Sales in Q2 2025
Bengaluru's residential real estate market continues to thrive, recording 15,100 home sales in Q2 2025, capturing 16% of India's housing demand. The city's growth is fueled by IT, infrastructure, and lifestyle improvements.
Real EstateBengaluruHousing DemandMicromarketsMarket GrowthReal EstateSep 28, 2025
Bengaluru's residential real estate market is underpinned by growth in the IT sector, infrastructure developments, and improved lifestyle levels. These factors have made the city a hotbed for capital appreciation, rental stability, and investment opportunities. Here’s a detailed look at the performance of key micro-markets in Bengaluru.
Performance of Bengaluru’s Residential Real Estate Key Micro-Markets
Launches and Sales
- Launches: 15,350 units, a 26% decrease quarter-over-quarter, indicating a strategy to absorb existing supply.
- Sales: 15,100 units, a 1% increase from the previous quarter, showing consistent commitment from end-users and investors.
- Available Supply: 58,900 units, unchanged quarter-over-quarter, signaling a stable market.
- Average Quoted Price: ₹8,720/sf, reflecting 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, stable from Q1 to Q2 2025.
- Capital Values: ₹6,850/sf, a 1% increase from the prior quarter.
- Outlook: Expected to show stable growth, making it an attractive option for IT employees seeking affordable accommodation.
2. Whitefield
- Rental Values: ₹29,500 – ₹43,000/month, up 1% in Q2, driven by demand from technology professionals and NRIs.
- Capital Values: ₹9,950/sf, with a significant quarter-on-quarter growth of 3%.
- Outlook: Strong, bolstered by infrastructure improvements and social amenities, which continue 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, indicating strong buyer interest and activity.
- Outlook: Strong, as large projects and township developments continue to attract both investors and families.
4. Thanisandra Main Road
- Rental Values: ₹27,000 – ₹41,000/month, with a 1% increase in the last quarter.
- Capital Values: ₹9,500/sf, with a quarterly increase of 3%.
- Outlook: Positive, with continued demand for properties due to 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.
- Outlook: Positive, with growing demand for both rental and end-user properties as affordability improves and metro connectivity enhances.
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 growth corridors, particularly 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 seek to secure pricing amid rising costs.
- Rental Stability: Rents are rising consistently, especially in tech-centric corridors, which is beneficial 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 make micro-markets more attractive.
- Balanced Supply: Inventory levels remain healthy, preventing oversupply and ensuring price stabilization.
Outlook on Residential Micro-Markets
- All micro-markets show stable to increasing short-term growth, driven by 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 in Q2 2025, 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, making them suitable for tech professionals, families, and smart investors. As the city continues to develop, Bengaluru is uniquely positioned to deliver value in residential markets throughout 2025 and beyond.
Frequently Asked Questions
What is the total number of home sales in Bengaluru in Q2 2025?
Bengaluru recorded 15,100 home sales in Q2 2025.
Which micro-markets in Bengaluru are showing the strongest growth?
Whitefield, Sarjapur Road, Thanisandra Main Road, Electronic City, and Mysore Road are the micro-markets showing the strongest growth in Bengaluru.
What factors are driving the growth in Bengaluru's real estate market?
The growth is driven by the IT sector, infrastructure developments, and improved lifestyle levels.
How many new housing units were launched in Q2 2025?
Bengaluru saw 14,639 new housing units launched in Q2 2025.
What is the average quoted price per square foot in Bengaluru's residential market?
The average quoted price per square foot in Bengaluru's residential market is ₹8,720.
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