Bengaluru real estate in demand, housing sales to grow 21% in July-September: Report
Bengaluru's housing market is booming, driven by strong end-user demand and economic appeal, with sales expected to rise by 21% this quarter. In contrast, India's top cities are facing a 4% decline in housing sales due to lower demand particularly in Mumbai and Pune.
Bengaluru's housing market is experiencing a significant boom which is fueled by genuine end-user demand and a thriving economic ecosystem. While the overall demand across India's nine top cities is projected to decline, Bengaluru's housing market is on a strong upward trajectory, according to data from PropEquity.
As per the PropEquity data, India's top 9 cities are likely to witness a 4 per cent decline in housing sales in the quarter ending September mainly on lower demand in Mumbai region and Pune.
The housing sales in the ‘Silicon valley’ of India is estimated to rise by 21 per cent in July-September, reaching 16,840 units. This is a considerable increase compared to the 13,966 units sold in the same period a in the year ago, report ed PTI.
During January-September period of 2025 calendar year, sales of residential properties are likely to climb to to 49,559, up from 46,392 units in the corresponding period of the preceding year.
Bengaluru's housing market growth
Real estate developers anticipate that the festive season will further boost sales in Bengaluru during the fourth quarter of this calendar year, ensuring the year closes on a strong note. This outlook follows a dip in the 2024 calendar year, where sales stood at 61,116 units, down from 66,600 in 2023.
The market has shown resilience since COVID pandemic year 2020, when sales stood at only 34,480 units but the demand revived in subsequent years because of the pent-up demand, with sales increasing to 43,181 units in 2021 and 60,391 units in the 2022 calendar year, PTI noted.
On the other hand, the total housing sales across nine cities are estimated to fall 4 per cent to 1,00,370 units during the July-September 2025 as against 1,05,081 units in the year-ago period.
Key drivers of the demand in Bengaluru
Industry experts attribute Bengaluru's robust demand to several factors such as its strategic position, genuine end-users among various other economic, social, and lifestyle factors.
- Genuine homebuyers: Karishmah Siingh, Bengaluru-based Sattva Group's President of Sales, Marketing & CRM said that the boom is driven by genuine homebuyers, making the growth “exceptionally sustainable.”
- IT and corporate hub: The city's position as a preferred destination for multinationals and GCCs, along with a thriving IT and startup ecosystem creates massive demand for quality housing.
- End-users: Umesh Gowda H.A, Sanjeevini Group Chairman and Founder noted that the demand is primarily driven by end-users, particularly those working in the IT sector and startups.
- Lifestyle and infrastructure: Anjana Sastri, Director - Marketing of Sterling Developers highlighted a combination of economic, social, and lifestyle factors. These include employment opportunities, cosmopolitan appeal, high rental yields of residential (for both residential and commercial properties) and infrastructure development as the reasons which transformed micro-market into urban centres.