Representative image showing High rise apartments.
Credit: iStock Photo
Bengaluru: Despite a general slowdown in housing sales across the country, Bengaluru continues to reach new highs, leading India's residential market in the January-March quarter (Q1) of 2025 with a 25 per cent share of new launches and sales, according to a report by realty company JLL on Monday.
This performance established Bengaluru as the top contributor to both residential supply and demand across India for the period.
The city recorded all-time high quarterly new launches of 20,484 units, with the Ballari Road submarket accounting for the largest share (36%). This surpassed the city's previous high set in April-June 2024. Compared to Jan-March 2024, Bengaluru registered a substantial 62% increase.
The city's Q1 sales were 15,340 units, with Whitefield proving most attractive to homebuyers, generating 35% of overall sales. Hosur Road and Ballari Road submarkets also contributed significantly.
"The prime factors driving the sustained residential sector growth in Bengaluru include its robust IT and startup ecosystem, rising popularity as an employment hub and the ongoing expansion of Namma Metro and road networks connecting peripheries to the core," JLL.
In sales, Bengaluru saw a drop by 10% year-on-year. "The drop is moderate though, and sales will regain momentum in coming quarters. Even if launches have outpaced sales for this quarter, there is no major increase in unsold inventory. A large part of the sales are contributed by under-construction new launches and ready-to-move-in houses, Samantak Das," Chief Economist and Head of Research and REIS, India, JLL, told DH.
A recent report by Knight Frank showed that housing sales only declined in NCR and Bengaluru in Q1, due to these two markets witnessing the highest growth in prices.
Strong sales performance in previous quarters have also bolstered investor and developer confidence, resulting in a steady surge in launches.
"Sustained quarterly sales in Bengaluru have been largely driven by healthy buyer interest in projects launched during the same quarter. Interestingly in Q1 2025, around 30% of Bengaluru's sales were contributed by projects launched during the quarter, signalling strong buyer confidence in such projects in early stages of construction," said Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head - Residential Services, India, JLL.
Improved supply and continued demand for apartments priced over Rs 1 crore drove Bengaluru's performance, at 61% of the city's Q1 housing sales. On a YoY basis, sales of luxury homes grew by 31%. Most traction was gained by the premium segment apartments (priced between Rs 3-5 crore), which saw a 119% year-on-year growth in sales.
“The consistent rise in demand for more expensive homes reflects growing wealth among property seekers, evolving lifestyle aspirations, and a shift towards prioritizing spacious and high-end residences,” said Das in the note.
Sales of houses priced less than Rs 50 lakh saw the biggest YoY drop at 59%, accounting for 3% of the total share of sales in Q1.
High-end houses will continue to dominate in coming quarters, driven by rising disposable income of buyers, launch-driven sales, rising land prices and property prices, driving affordable housing to the peripheries as they are unable to sustain in the main city areas, Das told DH.
Average property prices grew by 13% compared to the previous year. Whitefield saw the highest YoY price appreciation at 17%, followed by the Hosur Road submarket at 14%.