Bengaluru’s residential property market witnessed a measured slowdown in 2025, with home sales declining by 5 per cent year-on-year as escalating prices and cautious buyer sentiment moderated demand in India’s technology capital. The trend mirrors a broader cooling across major urban housing markets, highlighting the growing influence of affordability pressures and economic uncertainty on purchasing decisions.
According to industry estimates, Bengaluru recorded sales of around 62,000 homes during the year, even as interest from both end-users and investors remained visible. Analysts point out that rising property values, concerns around global geopolitical instability, and apprehensions over potential job rationalisation in the IT sector contributed to buyers delaying purchase decisions rather than exiting the market entirely. The slowdown came despite a steady rise in housing prices. Across India’s top seven cities, average residential values increased by approximately 8 per cent in 2025, driven by higher land acquisition costs, construction inflation, and a sustained preference for well-located, amenity-rich developments. In Bengaluru, these factors translated into stronger price benchmarks, particularly in established technology corridors and emerging suburban micro-markets. Interestingly, the moderation in sales occurred alongside an increase in fresh supply. Developers launched over 74,000 new homes in Bengaluru during the year, marking a 5 per cent rise compared to 2024. Most new projects were concentrated in the mid-to-premium segments, typically priced between Rs 75 lakh and Rs 2.5 crore, reflecting developers’ confidence in long-term demand from salaried professionals and upwardly mobile households.
However, the imbalance between new launches and sales absorption led to a notable build-up in unsold inventory. By the end of 2025, Bengaluru’s unsold housing stock had increased by more than 20 per cent, among the sharpest rises across India’s major cities. Market experts suggest this accumulation is likely to push developers towards more calibrated launches and flexible payment structures in the coming quarters. Nationally, housing sales across the top seven cities declined by 14 per cent to just under 4 lakh units in 2025, down from nearly 4.6 lakh units a year earlier. Western markets continued to dominate overall volumes, with the Mumbai Metropolitan Region and Pune together accounting for nearly half of total sales, despite both recording significant year-on-year declines. Hyderabad also saw a steep drop in transactions, while Chennai stood out as the only major city to register growth in housing sales.
Urban planners and housing economists note that Bengaluru’s experience reflects a maturing market rather than a structural downturn. Demand remains fundamentally end-user driven, supported by the city’s employment base, expanding infrastructure, and long-term urban growth prospects. The current pause, they argue, may help steer the market towards more balanced supply, sustainable pricing, and improved housing outcomes aligned with inclusive and resilient city development.
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