Bengaluru Housing Market: Price Surge, Premium Focus, and Affordable Housing Gap

Bengaluru's housing market saw a 5.3% CAGR price rise over five years. Builders are focusing on premium 3BHK apartments in the Rs 1 to 2 crore range. This creates a shortage of affordable homes priced between Rs 30 to 50 lakh. Sales are highest in the Rs 1 crore to Rs 1.5 crore segment.

Bengaluru, which has ranked 1st in the Ease of Living Index by MoHUA (for cities with million+ population) has recorded a 5.33% compound annual growth rate (CAGR) in house prices over the past five years, as per a report by Liases Foras, an independent non-broking real estate research company

Additionally, the report showed that house price index for Bengaluru in 2025 shows that prices have appreciated by 7.2%, driven by strong job creation, real estate demand, and infrastructure expansion. The upward trend reflects strong investor confidence and market resilience.On the flip side, in 2024, prices had appreciated by 7.6% in Bengaluru, according to the report.

However, an alarming trend has emerged in Bengaluru where builders are building and supplying more premium 3BHK residential apartments in the Rs 1 to 2 crore price bracket and fewer 1 BHK units priced under Rs 30 lakh and between Rs 30 and 50 lakh price bracket. This indicates a shortage of new supply in the affordable housing segment in Bengaluru.

The report showed that new 335 1 BHK units were supplied by builders in the under Rs 30 lakh category, while 1,725 was the new supply in the 1 BHK Rs 30 lakh to Rs 50 lakh category. There was no new supply in the 2BHK Rs 30 to Rs 50 lakh category, while 3679 2 BHK units were new supply in the Rs 50 lakh to Rs 1 crore category.

The report said that 3BHK units lead the new supply chain, driven largely by strong additions in the Rs 1–2 crore brackets. The Rs 1 to Rs 2 crore category saw 22,174 new 3BHK units being supplied by builders while 6,655 new 3 BHK units were supplied in the Rs 2 to Rs 5 crore segment.

The report also said that plots/villas recorded the second-highest overall supply, reflecting significant traction for independent housing, especially in the mid-top premium ranges.

Though, 2BHK units continue to have a solid presence in the mid-income brackets, the report said that 1BHK and 4BHK have comparatively lower contribution to the total housing supply, while the others category has the smallest share of overall supply.

What does it mean for you?

Vishal Bhargava, Founder of BHK Voice, says that 'affordable homes' in most Indian cities are a very big compromise for the home buyer. Buyers want comfortable homes at respectable prices and builders want good and steady margins. Bhargava says: “This equation works as long as prices don't go out of touch with the average home buyer.”

Bhargava predicts that there will be a weakness in 'luxury homes' but a resurgence in 'mid-priced homes' in the coming years and thus the average home buyer should not be discouraged. His time will come. He has to be patient, evaluate the numerous options and buy carefully. Price growth has already plateaued.

What people are buying in Bengaluru and at what price

The report indicates that sales are highest in the Rs 1 crore–Rs 1.5 crore segment with 17,606 units, followed by the Rs 2 crore–Rs 5 crore segment with 13,614 units as well as the Rs 1.5 crore– Rs 2 crore segment with 13,093 units, This suggests a significant demand concentrated in the premium and upper mid-income housing categories.

According to this report, unsold inventory is also the highest in the Rs 1 crore–Rs 1.5 crore segment with 21,028 units, followed by the Rs 2 crore–Rs 5 crore segment with 15,890 units and the Rs 1.5 crore–Rs 2 crore segment with 15,359 units, reflecting substantial supply build-up, particularly across the high-value residential segments.

The table below shows what people are buying in Bengaluru at what price:

Annual unit sales of home (2025)

Quantity

Less than Rs 10 lakh

141

Rs 10 to Rs 30 lakh

1612

Rs 30 to Rs 40 lakh

1142

Rs 40 to Rs 50 lakh

3133

Rs 50 to 75 lakh

7702

Rs 75 lakh to Rs 1 crore

9658

Rs 1 crore to Rs 1.5 crore

17,606

Rs 1.5 crore to Rs 2 crore

13,093

Rs 2 crore to Rs 5 crore

13,614

Rs 5 crore to Rs 10 crore

837

More than Rs 10 crore

8

Source: Liases Foras report

Table showing unsold house supply stock in Bengaluru:

Unsold supply

Quantity

Less than Rs 10 lakh

211

Rs 10 to Rs 30 lakh

3667

Rs 30 to Rs 40 lakh

2059

Rs 40 to Rs 50 lakh

4138

Rs 50 to 75 lakh

9487

Rs 75 lakh to Rs 1 crore

11078

Rs 1 crore to Rs 1.5 crore

21028

Rs 1.5 crore to Rs 2 crore

15359

Rs 2 crore to Rs 5 crore

15890

Rs 5 crore to Rs 10 crore

1243

More than Rs 10 crore

10

Source: Liases Foras report