Bengaluru leads premium housing surge amidst price rise in Q3 2025

Bengaluru housing prices rose 15% YoY in Q3 2025, driven by luxury demand. Nationwide, property values surged despite flat sales and launches

Bengaluru’s residential real estate market witnessed a robust 15% year-on-year price growth in Q3 2025, positioning it among the top gainers across India’s eight prime housing markets. According to reports, the city’s average property price rose from ₹7,713 per sq. ft. in Q3 2024 to ₹8,870 per sq. ft. this year, driven by sustained demand for premium and luxury homes.

The quarterly appreciation stood at 12.6%, underscoring Bengaluru’s strong buyer sentiment and developers’ strategic focus on upscale offerings. This trend mirrors a broader national movement, with Delhi NCR leading the pack at a 19% annual increase, followed by Hyderabad at 13%.

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Despite a marginal 1% dip in overall home sales volume across the top eight cities—totalling 95,547 units—the total transaction value surged by 14% to ₹1.52 lakh crore. This divergence highlights a clear shift towards high-value property purchases, particularly in metros like Bengaluru, where tech-driven affluence and infrastructure upgrades continue to fuel demand.

New launches across these cities saw a slight annual decline of 0.1%, but a 9.1% quarter-on-quarter rise suggests cautious optimism among developers. Bengaluru, while not the top contributor to new supply, remains a key player in the southern market’s growth story, alongside Hyderabad and Chennai.

The report also noted that western and southern regions dominated fresh inventory, with MMR, Pune, and Hyderabad accounting for nearly 60% of new launches. This strategic supply alignment reflects developers’ response to evolving buyer preferences, especially for ready-to-move-in and luxury units.

As Bengaluru continues to attract investment and talent, its real estate trajectory signals resilience and premiumization, reinforcing its status as a cornerstone of India’s urban housing landscape.

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