South Bengaluru registers 9% increase in home sales, account for 20% of the city’s total transactions

Bengaluru’s residential real estate market demonstrated a geographic shift in Q2 2025. While East Bengaluru, historically the absorption leader, witnessed a decline in both quarterly and annual sales, the North and South zones emerged as bright spots, each posting healthy gains.

According to ANAROCK’s Q2 2025 report, although the overall citywide home sales dipped 8% year-on-year, total units sold stood at 15,100. Amid this slowdown, South Bengaluru accounted for 20% of the city’s transactions, registering a 9% sales increase quarter-on-quarter and year-on-year. Meanwhile, the North also demonstrated “marginal sales growth”, signaling a rebound in buyer confidence in its emerging micro-markets.

Also read: Bengaluru: Luxury homes dominate Bengaluru’s Q2 launches with over 90 percent of them priced over ₹80 lakh

Developers recalibrate their strategies

Developers appear to be recalibrating their strategies—launches dipped 26% quarter-on-quarter, from 20,850 in Q1 to just 15,350 in Q2, with a sharp tilt toward the premium and luxury segment (homes ₹ 80 lakh and above). This pivot seems to resonate well in North and South zones, where infrastructure enhancements—like metro extensions and improved road connectivity—are steadily boosting appeal.

Despite the sluggish sales traction in East Bengaluru, the market remains resilient. Average property prices rose by a robust 12% year-on-year, supported by sustained demand for upscale homes. However, unsold inventory ballooned to approximately 58,900 units—a 30% year-on-year surge, and the inventory overhang grew to 12 months, nudging upward from the prior quarter. 

As East Bengaluru cools, North and South Bengaluru are emerging as the new growth engines. If this trend holds—backed by improved connectivity and developer focus—these zones could help stabilize the city’s residential momentum. However, with mounting inventory and elevated prices, the market remains in a constrained, watchful phase, awaiting clearer economic signals.