Bengaluru’s residential real estate market shows a clear bifurcation: premium apartments with expansive layouts and top-tier amenities are selling briskly, while smaller, no-frills budget units accumulate unsold inventory amid sluggish demand.

Premium Segment Surge

Homebuyers increasingly target mid- to premium homes priced between ₹1–5 crore, which captured nearly 79% of H1 2025 sales despite a 31% jump in total launches to 33,498 units.
This shift stems from rising incomes among IT professionals, NRIs, and high-net-worth individuals seeking spacious 3–4 BHK units (often 2,000+ sq ft) with wellness-focused amenities like landscaped gardens, clubhouses, co-working spaces, smart home automation, and circadian lighting.
In Q1 2025, luxury and high-end launches accounted for 86% of new supply, driving 11.2% YoY growth in premium sales, particularly in Sarjapur Road and Whitefield where prices hit ₹11,000–22,000+ per sq ft.

Budget Units Lag

Conversely, sub-₹50 lakh units face severe absorption issues, with quarters-to-sell (QTS) stretching to 20.3 quarters city-wide—far above the overall 4.9 quarters—leading to a 25% YoY inventory swell to 67,518 units by end-2025.
Affordable segments (<₹50 lakh) contributed just 6% of H1 2025 sales, burdened by 18,478 unsold units and a QTS of 16.6, as buyers shun basic layouts lacking modern features amid rising construction costs and land scarcity.
Older inventory (average age now 14.8 quarters) exacerbates the pile-up, prompting developers to pivot away from low-margin budget projects toward higher-yield premium ones.

Driving Factors

Hybrid work models demand larger home offices and family spaces, while post-pandemic aspirations prioritize exclusivity, low-density living, and sustainability over bare-bones affordability.
Infrastructure like metro expansions in East and North Bengaluru boosts premium corridors (e.g., Hebbal at ₹8,500–10,500/sq ft), but peripheral budget areas struggle with poor connectivity.
Developers like Brigade and Puravankara report 43% of launches in high-end/luxury categories, aligning supply with buyer preferences for branded quality over quantity.

Market Data Snapshot

City-wide prices rose 14% YoY to ₹7,052/sq ft by mid-2025, with premium zones like Bannerghatta Road up 18%.

2026 Outlook

Expect continued premium dominance, with moderate 5–8% appreciation in well-connected micro-markets, though budget oversupply may force price corrections or PMAY interventions.puravankara+1
Buyers should eye South/East corridors for value; developers must innovate budget options with basic amenities to clear inventory.

  budget apartments, premium apartments, premium housing, premium housing demand