Bengaluru homebuyers struggle as sub‑₹1 crore homes vanish

Bengaluru’s housing market crisis: 42% of buyers can’t afford sub‑₹1 crore homes as prices soar, pushing demand toward premium projects and outskirtsB

Bengaluru’s housing market is undergoing a dramatic shift, with affordability slipping out of reach for a large section of buyers. A recent industry report shows that more than 42 percent of prospective homeowners in the city can no longer afford properties priced below ₹1 crore, underscoring the widening gap between demand and supply in the mid‑income segment.

The findings reveal that while demand for homes under ₹1 crore has grown by around 13 percent year‑on‑year, developers are increasingly prioritizing premium projects. Rising land costs, higher construction expenses, and stronger margins in luxury housing have tilted the market away from budget homes. As a result, middle‑class families are finding it harder to secure affordable options in new developments.

Resale properties are offering some relief, with more budget‑friendly inventory available in the secondary market. However, in fresh launches, the situation is stark. Even compact two‑bedroom apartments in prime localities are now breaching the ₹1 crore mark, while larger three‑bedroom units often range between ₹1.5 crore and ₹2 crore.

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Experts point out that Bengaluru’s booming IT sector and expanding infrastructure have fueled demand for premium housing, but the city risks pricing out ordinary buyers. Many are being pushed to peripheral areas where property costs are lower, though these regions often lack robust connectivity and amenities.

The report warns that if the affordability crisis continues, Bengaluru could face long‑term challenges in balancing its housing needs. Policymakers may need to incentivize developers to create mid‑income housing projects to ensure inclusivity. Without such measures, the city’s growth trajectory may deepen inequality in home ownership.
For now, Bengaluru stands among India’s most expensive real estate markets, with affordability shrinking rapidly. Investors and high‑income professionals continue to drive demand, but the middle class — once the backbone of the city’s housing market — is increasingly being priced out.

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