Bengaluru’s housing market is witnessing a decisive shift as homebuyers increasingly turn to resale properties, driven by shrinking availability of affordable new launches and rising prices across key residential corridors. During 2025, resale home transactions in the city rose sharply, signalling a structural change in buyer behaviour rather than a short-term market fluctuation.
Market data and industry assessments indicate that the supply of new mid-segment homes has contracted, particularly in established technology corridors such as East and Southeast Bengaluru. As developers prioritise premium projects to offset escalating land and construction costs, the pool of new homes priced for middle-income buyers has narrowed significantly. This imbalance has redirected demand toward ready-to-occupy homes in established neighbourhoods, where pricing, unit sizes and possession timelines are more predictable. Resale housing has gained momentum largely due to two converging forces. On the supply side, homeowners and early investors who entered the market before the pandemic-driven price escalation are now monetising accumulated gains. On the demand side, buyers are increasingly unwilling to wait several years for possession of new projects that are often priced at a premium despite offering smaller layouts. The result has been a growing volume of well-maintained, occupied homes entering the secondary market. Urban analysts note that this trend is most pronounced in Bengaluru’s eastern IT belt, where land fragmentation and regulatory constraints have limited the scale of new residential launches. With fewer large projects coming to market, resale homes have emerged as the primary option for buyers seeking proximity to employment hubs, established social infrastructure and functioning civic services. Gated communities with stable occupancy and professional maintenance have seen particularly strong interest.
Affordability pressures are also reshaping buyer choices. Average residential prices across Bengaluru have continued to rise, pushing many households out of the sub-Rs 1 crore segment altogether. For these buyers, resale homes often represent the only viable pathway to ownership within reasonable commuting distance of workplaces. Urban planners caution that prolonged under-supply in this segment could deepen inequality by excluding first-time buyers from central and well-served locations. From a broader urban development perspective, the growing dominance of resale transactions highlights the need for more balanced housing supply. While premium developments may support developer margins and municipal revenues in the short term, sustained urban resilience depends on diverse housing options across income bands. Without this balance, cities risk longer commutes, increased congestion and social fragmentation as buyers are pushed further to the periphery.
Looking ahead, Bengaluru’s resale housing surge underscores a maturing market where existing stock plays a critical role in meeting demand. Policymakers and developers alike face the challenge of aligning future supply with affordability, infrastructure capacity and sustainable growth, ensuring the city remains accessible to its working population even as property values rise.
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Bengaluru resale market accelerates amid launch slowdown
