Bengaluru tops demand for houses priced in Rs 1-5 cr range

Bengaluru has emerged as the country's most-preferred destination for premium and luxury houses priced between Rs 1 crore and Rs 5 crore. The city witnessed sales of 18,299 houses in this price point, accounting for 24% of the total houses (75,042) sold in this category across the country during January to June 2025.

This indicates rising aspirations of homebuyers post-Covid era. It also indicates that it is no longer economical for real estate developers to build smaller houses priced below Rs 1 crore, according to Knight Frank India, an independent property consultant.

In the housing segment costing between Rs 1 crore and Rs 5 crore, NCR stands in the second place with sales of 16,416 units, accounting for 22% of the total sales. It is followed by Mumbai at 15,720 houses, about 21% of the total sales.

Bengaluru also witnessed sales of 325 houses priced between Rs 5 crore and Rs 10 crore, while 5 houses priced between Rs 10 crore and Rs 20 crore were sold during the January to June 2025 period.

The most noteworthy trend that has prevailed is the premiumisation of the residential segment across the markets. About 49% of all home sales were costing between Rs 1 crore and Rs 50 crore and above which saw sales of 83,433 units across the key markets, Knight Frank said.

“The residential market in H1 2025 reflected a nuanced shift where premium and luxury segments continued to thrive, even as lower value segments showed signs of continued moderation. Homes priced above Rs 1 crore now constitute nearly half of all sales—an indicator of changing buyer priorities and rising aspirations,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The city’s average residential price rose by 14% Year-on-Year at Rs 7,052 per square feet, driven by high demand and a supply shift toward premium products. Locations such as Bannerghatta Road, Whitefield, Sarjapur Road, and Tumkur Road recorded some of the highest price appreciations, supported by metro connectivity and a high concentration of new launches.

South Bengaluru retained its position as the city’s most active micro-market, accounting for 38% of total launches and leading in sales volume. The region’s appeal remained anchored in key localities such as Electronic City and Sarjapur Road which benefitedfrom proximity to major IT hubs, robust social infrastructure, and ongoing enhancements to metro connectivity. The Yellow Line metro under construction along Hosur Road has further enhanced the area’s appeal, particularly for end users. Developers are increasingly targeting the premium segment here as demand shifts from the traditional low ticket size segments to mid or high ticket size segments with more amenity-rich offerings.

The property developers ramped up supply in response to sustained demand. A total of 33,498 housing units were launched, registering a 31% YoY growth with one of the highest half-yearly launches in recent years.