As of 2025, Bangalore’s home‑buying market stands at a demographic crossroads!

On one side, Millennials and GenZ dominate urban demand, shaping mid‑range and tech‑enabled housing preferences. On the other hand, affluent HNIs, NRIs, and long‑term savers dominate the premium and luxury end, driving growth in high‑value segments. This bifurcation defines both opportunity and tension in the city’s residential ecosystem.

Locations like Whitefield, Sarjapur Road, Yelahanka, and Hebbal are preferred by Millennials, while Electronic City, Kanakpura Road, and Hoskote are Gen Z’s preference.

IT Professionals are inclined towards Devanahalli and Thanisandra while seasoned HNI investors are fixated on old-world charm like Indiranagar, Sadashivanagar, and Koramangala.

Fig 1. Category of buyers.
I. YOUNGER BUYERS: MILLENNIALS & GENERATIONZ (GEN Z) LEAD THE CHARGE!
A. Rapid persona shift

• In H1 2024, over 60% of property transactions in Bangalore were by Millennials (between the age of 27 and 42 years) and GenZ (up to 26 years)
• Of these buyers, around 72% were Millennials and about 16% GenZ.

H1 2025 is furthering the trend and close to 80% buyers are younger than 42 years of age.

Fig 2. Bifurcation of % share of segments in transactions (2025 YTD)
B. First‑time buyers are driven by value & equity
• Average purchase ticket size is in the range of ₹70lakh to ₹1.1crore for this cohort, often in 1 to 3BHK units for both self‑use and rental income potential (investment purpose).
• The typical buyer age has dropped; first‑time purchasers now average in their early to mid‑30s (≈34), down from ≈42 three years ago.

Figure 3. Decreasing average age of first-time buyers
C. Preference for smart, green & community living
• Younger buyers prioritize smart‑home features, IoT integration, and sustainable construction designs. These come at a 15% price premium on average  .
• Gated townships with amenities such as co‑working spaces, gyms, parks, and clubhouse culture are increasingly popular  .
D. Locales of choice
• Emerging suburbs like Sarjapur Road, Whitefield, Yelahanka, Hebbal, Devanahalli are favored for affordability and better connectivity  .
• These localities benefit from new metro lines (Namma Metro Phases 2 & 3) and Peripheral Ring Road access  .
2. AFFLUENT BUYERS: PREMIUM & LUXURY ON THE RISE

Fig. 4 Property prices range and their % share in 2025 sales
A. Market high-end momentum
• Homes priced above ₹1 crore now account for ~61% of total sales in Q1 2025, with ₹3 to 5crore properties up 119% YoY  .
• Mid‑segment (₹1 to 2crore) made up ~35% of sales in H2 2024; ₹2 to 5crore units contributed ~21% compared to 11% in H2 2023  .
B. Buyer Profile
• High‑income professionals from IT product companies, NRIs, expatriates, and those who worked abroad (UAE/US/Gulf) make up a large share of luxury buyers  .
• Luxury projects in Indiranagar, Koramangala, Jayanagar, Sadashivanagar, North Bangalore are especially popular among this cohort  .
C. Amenities & Exclusivity
• Affluent buyers prefer ultra‑luxury offerings: penthouses, large villas, concierge services, private elevators, and sky lounges in gated developments  .
• Green‑certified and smart‑enabled luxury homes command higher premiums as status and long‑term investment instruments  .
3. BIFURCATION IN SEGMENT & SOCIO‑ECONOMICS
A. Mid vs. Premium: Shrinking Middle Ground
• Mid‑segment housing (₹40lakh to ₹1crore) still accounts for ~60% of overall launches, but many new launches are skewed upward toward premium pricing  .
• NoBroker reports mid‑segment share dropping from ~29% in 2023 to ~22% in 2024, while premium (₹1.5crore+) increased from ~29% to ~34%  .
B. Affordability Gap Widening
• Despite strong demand, buyers earning below ₹20lakh to ₹25lakh/year are increasingly unable to find new launches in affordable brackets; developers focusing on higher margins curtail mid and entry‑level stock   .
• Affordable housing (<₹50lakh) has low sales velocity despite government schemes; newly launched affordable units remain constrained  .
4. REGIONAL DIVIDE: WHERE BUYERS CLUSTER
A. Emerging Peripheral Corridors
• North Bangalore (Devanahalli, Yelahanka, Aerospace Park, Thanisandra) now drives about one‑third of new launches (~33% in 2024), favored for airport access and tech hubs  .
• East Corridor: Whitefield, Sarjapur Road, Electronic City remain in demand from both Millennials and affluent buyers, with gated communities leading the way  .
B. Central & Established Markets
• Traditional inner‑city neighborhoods like Indiranagar, Koramangala, Jayanagar continue to attract luxury buyers and expatriates. Smaller launches, premium pricing, and lifestyle cachet define these areas.
5. CHALLENGES & CROSSWINDS
A. Job Market Risks & Over‑Dependence on IT
• Reddit discussions warn of rising risks: layoffs, slowdown in IT hiring, and AI automation may erode purchasing power in tech‑driven buyer segments  .
• Uncertain IT sector could trigger defaults or demand softening, especially in luxury and mid‑end segments   .
B. Oversupply & Correction Risk
• Peripheral micro‑markets may soon face oversupply. Several redditors highlight risk of a bubble and potential price correction in outskirts due to saturation   .
C. Infrastructure & Inequality
• Despite major infrastructure upgrades, traffic congestion and unequal water/security infrastructure across neighborhoods persists, affecting buyer sentiment in some pockets  .
6. OUTLOOK: WHAT LIES AHEAD IN 2025
A. Dual-Speed Market Growth
• Mid‑income Millennials will continue to drive demand for tech‑enabled, community‑centric flats in mid‑price ranges especially in well‑connected suburbs.
• Affluent HNIs and NRIs will propel demand in ultra‑luxury developments in established zones and newer premium enclaves.
B. Proptech & Smart Roles
• Virtual tours, AI‑driven pricing, blockchain registration, and digital transparency (RERA‑based) will shape buyer trust and streamline transactions   .
C. Sustainability as a Baseline
• Green certifications, solar integration, water‑efficient construction, and energy‑saving systems are expected to be baseline expectations, especially from eco‑conscious younger buyers and discerning luxury purchasers  .
D. Strategic Neighborhood Picks
• Buyers will increasingly select emerging corridors (North, Sarjapur, Kanakapura) for growth potential, while inner‑city zones retain premium appeal. Hybrid workers favor homes with dedicated workspace flexibility.

As of mid‑2025, Bangalore’s residential real estate market exhibits a stark demographic bifurcation:
• Millennials and GenZ dominate early‑career, mid‑price segment demand with smart, community‑oriented preferences.
• HNIs, NRIs and wealthy professionals anchor luxury and premium segment purchases in established and emerging prime zones.
These two poles drive the market upward and inward with limited movement in the mid‑segment, risking affordability bottlenecks. Infrastructure acceleration, Proptech adoption, and sustainability are weaving through both segments, though overall market stability faces potential headwinds from macro shocks (IT slowdown, oversupply, affordability gap).
Understanding these divergent buyer profiles and the values, geographies, and constraints they embody is key to navigating Bangalore’s dynamic real estate landscape in 2025.

 

 *Source: JLL Primary Research (Data taken from TOI, HT, and Portal Reports)

Author: Sumedha Das