House prices up as Bengalureans seek premium living

Benagluru: Increasing demand for larger houses configured with premium features, strong infrastructure, better connectivity, and a well-developed social ecosystem is driving housing price growth in Bengaluru.

During the first quarter of 2026, ending March, the city witnessed a strong 14% growth in residential housing prices.

According to NoBroker, property prices in various micro markets of Bengaluru rose 14% in the January-March quarter this year, compared to the same quarter last year. Prices moved up from Rs 9,199 per sq ft in Q1 2025 to Rs 10,531 per sq ft in Q1 2026, reflecting the supply shift toward larger, premium configurations.

“Real estate prices in Bengaluru are surging due to a mix of strong demand, limited supply, and structural factors. High-income IT and finance professionals are driving demand. Increased prices of materials like steel and cement, along with labour costs, are also pushing up property prices,” Saurabh Garg, co-founder and CBO of NoBroker told DH.

“Pricing in Bengaluru also remains highly micro-market specific. Factors such as location, social infrastructure, and product differentiation play a critical role. Well-positioned developments can continue to command a premium, while the broader market remains steady. Overall, supported by strong employment drivers and continued office absorption, we remain confident of stable demand and pricing in the near to medium term,” Mallanna Sasalu, CEO – South, Puravankara Limited, said.

Developers are focusing more on luxury projects, reducing affordable housing supply to cater to the affluent class. Premium homebuyers in Bengaluru today seek spacious 3 and 4 BHK configurations that go beyond size to deliver an experience-led lifestyle.

They prefer homes with higher carpet area efficiency, plus rooms for work-from-home or guests, wide balconies/sundecks, and in larger units, servant quarters.

There is strong demand for low-density developments that offer privacy, better ventilation, and reduced noise. Interiors are expected to feature high-end materials, modular kitchens with premium fittings, smart home automation, luxury bathrooms and soundproofing, Garg added.

“A large share of new launches in the January-March quarter has been concentrated in the Rs 1.5 crore to Rs 2.5 crore segment, with pricing in several micro-markets moving toward an average of Rs 12,000 to Rs 15,000 per square foot,” Vivek Venkateswar, Director - SMP, Shriram Properties Ltd, said.

Pavitra Shankar, Managing Director, Brigade Group, said the price growth seen so far reflects customer preferences shifting toward premium housing, in terms of size as well as positioning. “In our portfolio as well we saw like-to-like product pricing increase by over 50% cumulatively over the last 4 financial years.

Geopolitical tensions on a sustained basis will result in rising input costs for raw materials and the impact on cost structure and eventual pricing to customers is yet to be quantified,” she said.

Anarock Group pegs the rise in property prices at 8% in Q1 this year, mainly due to increased new supply in the luxury and ultra-luxury segments.

Karishmah Siingh, President of Sales, Marketing & CRM, Sattva Group, said young homebuyers are showing a strong preference to own homes that align with their lifestyle aspirations, which is expanding demand across segments.

“Micro-markets that offer strong connectivity, infrastructure visibility, and a well-developed social ecosystem are driving prices up in the city,” she said.