Bengaluru’s Real Estate Finds Its Balance in 2025
The Bengaluru residential market in Q2 2025 reflects a city at a crossroads, balancing rising prices, selective demand, and a strong shift toward premium living. According to our latest report, the quarter recorded a 3.2% quarter-on-quarter (QoQ) decline in new home purchases, while new project launches dropped sharply by over 31%.
At first glance, these figures may seem concerning. But a deeper look shows a structurally healthy market evolving with smarter, more discerning buyers and a growing preference for quality over quantity. While volume slowed, capital values rose by 2.8% QoQ and rents climbed by 0.7%, signaling sustained confidence and long-term investor interest.

1. The Numbers at a Glance


2. Why did home sales slow-down but didn’t stumble?

Fig 1. % QoQ change in home sales (2021-25)
Bengaluru’s housing market has remained one of India’s most resilient driven by the IT sector, a strong startup base, and infrastructure upgrades. Yet, Q2 2025 saw a slight cooling in transaction volumes.

2.1 Sticky interest rates and price sensitivity
Even though India’s broader economy is steady, interest rates have not softened significantly, making EMIs slightly higher for mid-segment buyers. This, coupled with rising home prices, has led many potential homeowners to delay purchase decisions in hopes of a correction or better offers.

2.2 Shift to premium segment
Rather than a lack of demand, Bengaluru’s slowdown reflects a shift in buyer preference. More consumers are moving toward premium projects priced between ₹1 crore and ₹5 crore, where the perceived value, amenities, and long-term appreciation potential are higher.

2.3 Selective market sentiment
The demand is now for location-led projects in emerging corridors such as Shettigere, Whitefield, Sarjapur, and Hosur Road continue to attract serious buyers. The sentiment is less about “buying a house” and more about buying the right house in a future-ready zone.

3. The rise of premium launches
One of the biggest highlights from the Q2 2025 report is the shift in new project launches toward premium and high-end categories.
“Most new launches were in the premium segment, ranging from ₹1 crore to ₹5 crore,” notes the report.
While overall launches fell by 31%, this was intentional repositioning by developers. Instead of flooding the market with mass housing, many leading developers focused on targeted premium launches to align with rising aspirations and HNI/NRI interest.

3.1 Top launches that defined Q2 2025
• Godrej MSR City, Shettigere: A large-scale integrated development that drew strong buyer interest due to its proximity to the airport and new business corridors.
• Prestige Southern Star, Bannerghatta Road: Targeted toward mid-to-premium buyers, this project saw robust enquiries thanks to the Prestige brand’s trust and Bannerghatta’s growing social infrastructure.
These projects symbolize the evolution of Bengaluru’s residential buyer; one who values branded projects, connectivity, and future appreciation over low-cost options.

4. Submarket spotlight: Where the action is!

4.1 Hosur Road leads the pack
The Hosur Road submarket stood out in Q2 2025, recording over 6,000 new apartment units launched. This zone benefits from:
• Connectivity to Electronic City and Bommasandra Industrial Belt
• Upcoming Metro Phase 2 expansion
• New employment zones around Attibele and Begur
Hosur Road has transformed into a massive residential hub, balancing affordability with proximity to IT parks and manufacturing nodes.

4.2 Bellary Road: The airport corridor boom
The Bellary Road corridor, influenced by airport-related infrastructure and SEZ development, continued its steady growth. With projects like Godrej MSR City and multiple plotted developments, this micro-market caters to premium buyers and investors eyeing long-term appreciation.

4.3 Whitefield & Sarjapur Road: Rental powerhouses
Whitefield and Sarjapur Road remain the epicenters of rental demand, primarily due to their closeness to ITPL, RMZ Ecoworld, and major tech campuses.
• Rentals rose by 0.7% QoQ, with an annual growth of 4.8%.
• Tenant demand remains strong among IT professionals and remote workers seeking connectivity and lifestyle infrastructure.

5. Price Movement: What does the 2.8% growth indicate?
The 2.8% QoQ rise in capital values is a strong indicator of sustained investor confidence. Unlike speculative spikes seen in earlier cycles, this growth is organic, driven by:
• Limited new supply
• Higher-quality launches
• Strong rental absorption
The city’s average capital value stood at ₹7500 per sq. ft., reflecting a 14.9% year-on-year growth.

Fig 2. % YoY growth in capital value (2020-25)
It shows Bengaluru’s steady climb toward mature real estate economics, not dependent solely on hype, but on real demand, livability, and brand trust.

6. Rental Market: Small increments, big stability
While rents grew modestly at 0.7% QoQ, the broader year-on-year rise of 4.8% signals sustained demand for quality housing. Bengaluru continues to attract working professionals, expats, and students, ensuring a consistently occupied rental market.

Fig 3. Rental value growth (₹ per sq. ft. per month)
Prime areas witnessing strong rental traction include:
• Whitefield: ₹35 to ₹60 per sq. ft. per month
• Sarjapur Road: ₹30 to ₹55 per sq. ft.
• Bellandur & Outer Ring Road: ₹45 to ₹65 per sq. ft.
The emerging trend is toward co-living spaces and managed apartments, as remote work flexibility blends with the city’s lifestyle convenience.

7. The big picture: Infrastructure and employment corridors fuel growth
Even with quarterly slowdowns, Bengaluru’s long-term fundamentals remain rock-solid.

7.1. IT and startups continue to drive demand
The city’s tech ecosystem from global IT firms in Whitefield and Electronics City to startups in Koramangala and Indiranagar continues to fuel residential absorption. Bengaluru still accounts for over 35% of India’s office leasing, indirectly strengthening its housing market.

7.2 Infrastructure push
Key upcoming infrastructure projects are transforming connectivity and boosting real estate prospects:
• Bengaluru Suburban Rail Project
• Metro Phase 2 & 3 expansion
• Peripheral Ring Road (PRR)
• Satellite Town Ring Road (STRR)
These corridors are expected to decongest central Bengaluru and unlock new investment zones in the coming years.

7.3 Premium and sustainable living
Homebuyers today are prioritizing sustainability, green spaces, and smart home features. Developers are responding with eco-certified projects that appeal to both domestic and global buyers.

8. Who’s buying? The Emerging buyer profile
The Bengaluru homebuyer in 2025 looks quite different from the one five years ago.

9. Developer strategy: Quality over quantity
Developers are adopting a more strategic, phase-based approach. Instead of launching mega-projects all at once, many are focusing on limited releases, ensuring faster sales velocity and controlled inventory.
Major developers like Prestige, Godrej, Sobha, and Brigade have adjusted their pipeline to align with this trend. This is also leading to:
• Better cash flow management
• Improved delivery timelines
• Enhanced buyer trust

10. Investment perspective: Why does Bengaluru still win?
Despite temporary dips, Bengaluru remains India’s most investor-friendly housing market. Here’s why:
• Strong rental yield potential: Average yields range between 3.5% to 4.5%, among the highest in metro cities.
• Low unsold inventory: Controlled new supply keeps market equilibrium.
• Rising HNI and NRI interest: Global Indians continue to prefer Bengaluru due to stability and tech growth.
• High employment elasticity: Job growth directly supports housing demand.
• Sustained capital appreciation: 14.9% YoY rise in prices indicates continued asset value growth.

11. Market outlook: Cautious optimism ahead
Our outlook emphasizes steady growth driven by fundamentals rather than speculation. As infrastructure corridors like PRR and Metro lines become operational, emerging nodes will gain stronger traction.

11.1 Key trends to watch:
• Continued price appreciation in premium zones
• Shift to sustainable, tech-enabled homes
• More NRI participation as rupee stability improves
• Rise in plotted and villa developments near airport and southern corridors
Overall, Bengaluru’s housing market is entering a mature phase, where value, quality, and livability guide buying decisions rather than herd sentiment.

Bengaluru’s real estate is evolving, not slowing
The Q2 2025 numbers highlight an important truth; Bengaluru’s real estate market isn’t cooling off; it’s consolidating for long-term strength.
While sales and launches dipped slightly, the city’s property values, rental demand, and buyer confidence all point to sustainable, healthy growth.
With its blend of tech-driven economy, lifestyle appeal, and infrastructure transformation, Bengaluru continues to be India’s most dependable real estate story not defined by temporary numbers, but by consistent evolution.

FAQs (Frequently Asked Questions)

Q1. Why did Bengaluru’s home sales dip in Q2 2025?
A: Sales fell by 3.2% mainly due to higher prices and sticky interest rates.

Q2. Which areas saw the newest launches?
A: Hosur Road led with over 6,000 units, followed by Bellary Road and Whitefield.

Q3. What was the average property price in Q2 2025?
A: Around ₹6,926 per sq. ft., marking a 2.8% quarterly rise and 14.9% annual growth.

Q4. How much did rentals grow?
A: Rents rose by 0.7% QoQ and 4.8% YoY, driven by IT corridor demand.

Q5. Are developers launching fewer projects?
A: Yes, new launches dropped 31% as developers focused on premium projects.

Q6. Which projects drew high demand this quarter?
A: Godrej MSR City (Shettigere) and Prestige Southern Star (Bannerghatta Road).

Q7. What drives Bengaluru’s housing demand?
A: IT sector growth, startup expansion, and infrastructure development.

Q8. Is Bengaluru still a good city for property investment?
A: Absolutely. It offers strong rental yields and stable appreciation.

Q9. Which buyer segment dominates the market?
A: Mid-to-premium buyers in the ₹1–₹5 crore range.

Q10. What’s the 2025 outlook?
A: Steady growth ahead, driven by new infrastructure, premium housing, and urban expansion

 

Source: Data & excerpts taken from JLL Research Report “Bengaluru Mass Residential Market Dynamics Q2 2025” | JLL Primary Research

Author & editor: Sumedha Das