Summary of this article
Bengaluru becomes India’s second costliest housing market.
Prices rise 21% to Rs 9,500/sq ft.
Sales grow despite supply-demand fluctuations.
The housing market in Bengaluru witnessed a sharp rise in prices during the last quarter of 2025. This growth has made the city one of the most expensive cities in the Indian real estate market. As per a report by PropTiger, average housing prices in the city have risen by a total of 21 per cent in the last quarter of 2025; this growth was seen on a quarter-on-quarter basis. This increase has raised prices to Rs 9,500 per square foot. This growth makes this city the second most expensive housing market in the country, after Mumbai.
This spike is a reflection of a broader trend that indicates a sustained demand and ever-growing buyer preferences. Even as the market navigates through fluctuations in sales and supply, the upward trend is seen. While the increase in property prices has been quite steep, it hasn’t failed to meet the demand. This, in fact, has led to Bengaluru recording 12.7 per cent year-on-year growth in residential sales during the year 2025. This underlines the resilience of the housing sector.
However, the trajectory of the sales throughout the year has not been linear; the market went through significant volatility, with the demand rising and falling across the different quarters. Residential sales totalled 11,731 units in the first quarter of 2025. This was before it went through a strong rebound in the second quarter. During this period, sales had surged by over 33 per cent, reaching the total sales of 15,628 housing units. This also marks the strongest quarterly performance of the year in Bengaluru, as per the report.
As the final quarter unfolded, the market appeared to stabilise. The sales in Q4 of 2025 stand at 13,931 units, which registered a humble increase of 6.1 per cent, from the previous quarter. On an annual basis, this represents a 5.3 per cent rise on a year-on-year basis from 2024. This indicates a recovery phase despite the performance of the previous year.
Another key factor that shapes Bengaluru’s housing market is the fast-tracked pace of supply. The report highlights that supply expansion has outperformed demand. This keeps the market in an adjustment phase. Instead of entering a loop of rapidly expanding inventory, the sector has balanced the existing inventory levels and the pricing strategy. Another helping factor to this is the city’s employment ecosystem, which is driven by technology and startup culture. This demand is combined with infrastructure and development.
The real estate market in Bengaluru has reflected a mix of strong price growth factors and reinforcement, stable demand and consistent supply. While short-term fluctuations remain, the city is positioned for gradual and consistent growth.
