Bengaluru’s housing market is undergoing a decisive structural shift, with buyer demand increasingly concentrated at the premium end while affordable and lower-ticket homes struggle to find takers. Market data from 2025 indicates that this divergence is reshaping both supply strategies and urban growth patterns across the city, raising questions about housing inclusivity and spatial planning.
By the end of 2025, Bengaluru’s unsold residential inventory rose sharply to more than 67,000 units, driven largely by weak absorption in smaller and lower-priced apartments. Homes priced below Rs 50 lakh now face prolonged selling timelines, signalling a mismatch between legacy supply and contemporary buyer expectations. Industry analysts attribute this trend to changing post-pandemic lifestyle priorities, where space, liveability and access to amenities outweigh price sensitivity. In contrast, premium housing particularly homes priced between Rs 1 crore and Rs 5 crore has seen sustained momentum. Sales velocity in this segment remains healthy, with developers showing greater confidence in launching larger units despite higher capital exposure. Average unit sizes across new launches expanded by about seven per cent year-on-year, underscoring a strategic pivot towards spacious configurations aligned with evolving household needs. Urban planners note that this premium tilt reflects deeper changes in how Bengaluru’s workforce lives and commutes. Hybrid work models, longer home occupancy hours and rising aspirations among dual-income households have increased demand for larger homes with integrated recreational and community facilities. At the same time, peripheral locations offering lower prices but weaker connectivity are losing relevance. The geographical redistribution of demand further highlights this realignment. North Bengaluru emerged as the city’s most active residential zone in 2025, accounting for roughly one-third of both new launches and home sales. Infrastructure investments including airport-led commercial development, arterial road upgrades and ongoing metro expansion have transformed micro-markets such as Hebbal, Thanisandra and Jakkur into high-absorption residential corridors.
Southern Bengaluru has also retained its significance, supported by metro connectivity improvements and the emergence of high-value housing clusters in established employment zones. Meanwhile, East Bengaluru’s relative share has moderated not due to declining demand, but because growth in the North has accelerated faster. However, housing experts caution that the widening gap between premium and affordable segments poses long-term urban challenges. Rising inventory stress at the lower end suggests that price points, unit design and location planning need recalibration. Without intervention, Bengaluru risks deepening socio-spatial divides, pushing essential workforce housing farther from employment centres and transit networks. From a sustainability perspective, the shift towards fewer, larger homes also raises questions around land efficiency and resource consumption. Urban policy specialists argue that future housing supply must balance buyer preferences with compact, transit-oriented development to contain emissions and infrastructure strain.
As Bengaluru’s real estate market continues to evolve, the current cycle signals a clear message: homebuyers are prioritising quality, connectivity and liveability. The next phase of growth will depend on how effectively developers and policymakers respond by aligning housing supply with inclusive, climate-resilient urban planning rather than short-term market momentum alone.
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