Bengaluru’s residential property market booms with 132% rise in value of primary sales

The residential real estate market in Bengaluru saw a strong surge in FY’25, with the total value of primary housing units sold rising by 132% compared to FY’22. Around 65,000 new homes were sold in the city during the year, showing a healthy 40% increase in volume over FY’22 levels. The number of newly launched units also rose, from approximately 54,000 in FY’24 to 74,000 in FY’25, reflecting growing developer confidence and buyer demand.

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Prices have also moved up steadily. The average cost of an apartment increased by about 15% in FY’25 compared to FY’24. Interestingly, while the share of mid-range homes priced between ₹70 lakh and ₹1.5 crore fell from 40% in FY’22 to 34% in FY’25, luxury properties gained ground. Units priced above ₹3 crore more than doubled their share in overall market revenue, pointing to strong demand in the premium segment.

Nationwide, India’s Tier 1 cities recorded robust housing sales in FY’25, reaching an all-time high of ₹6.69 lakh crore in revenue from primary unit sales. Delhi-NCR led with a 25% share, followed closely by Mumbai Metropolitan Region (MMR) at 24%. However, the pace of new project launches has slowed down over the last two years.

Overall housing sales volume across Tier 1 cities rose by around 18%, from roughly 4.2 lakh units in FY’22 to 4.95 lakh units in FY’25. This difference between the rise in value and volume indicates a steep rise in average ticket size — with prices climbing from ₹81 lakh per unit in FY’22 to ₹1.35 crore in FY’25.

These trends underline the growing appetite for quality housing and the increasing shift toward high-value real estate investments.

(Source: CREDAI)