Residential demand fell approximately 3% quarter-over-quarter and 12% year-over-year in 2025

• Housing demand declined throughout the year due to rising prices and IT sector job uncertainty. Infrastructure issues and a shift towards larger, amenity-rich projects from established developers reduced demand for affordable and smaller housing options.
• Despite a temporary sales slowdown, projects launched in Q4 by established developers attracted strong buyer interest, accounting for more than 22% of quarterly sales. This demonstrates robust buyer confidence in new developments even during periods of market weakness.

New launches up 7.6% q-o-q; total annual launches in 2025 are around 61,000 units

• While mid and affordable segments slow, premium and high-end markets remain strong. Developers are focusing on premium projects due to demand from wealthy buyers and a trend towards spacious, well-equipped homes.
• Whitefield led Q4 2025 unit launches, followed by Hosur Road and Bellary Road. Notable projects included Lodha Elanza, Embassy Greenshore and Sowparnika Whispering Petals, while Sipani City (Phase 1) in Whitefield recorded the highest launch volume by units.

Residential property values and rents both rose 3-4% quarter-over-quarter in Q4 2025

• Bengaluru’s residential property prices continued to rise in Q4 2025, driven by launches in the higher price segments, rising input costs including land prices and established developers commanding a premium.
• Bengaluru’s rental housing market surge stemmed from its status as India’s tech hub, attracting IT talent, while availability of affordable options lagged. Return-to-office trends and improved metro connectivity further intensified demand, driving up rents citywide.

Outlook: Bengaluru’s housing market resilience to be fuelled by premium demand and infrastructure development

• Bengaluru’s housing market is expected to remain resilient in 2026, driven by better infrastructure, more jobs and sustained demand. North Bangalore, Sarjapur Road and Whitefield are key growth areas, focusing on upscale housing and mixed-use developments.
• Bengaluru’s residential property prices are projected to rise 10–12% in 2026, driven by strong demand for premium housing, robust office sector growth and rising construction and land costs, though affordability concerns may increase.