Summary of this article
Bengaluru records highest-ever residential launches in 2025
Luxury housing dominates as affordable supply disappears
North and South Bengaluru show contrasting growth patterns
In 2025, the real estate market in India will have shifted starkly. In terms of trends, buyer sentiments, and developers' focus. The residential real estate market in Bengaluru witnessed a record high in sales this year. This was backed by sustained end-user demand, macroeconomic fundamentals, and a renewed developer confidence. With residential launches of 49,252 units, the city recorded a 28 per cent year-on-year (Y-o-Y) growth. The momentum was particularly visible in the fourth quarter, with 12,149 launches. This reinforced Bengaluru’s position as a strong and mature housing market.
Behind the growth numbers lies the fundamentals that defined this growth, the dominance of high-end housing, the complete absence of affordable housing, and a gap between the North and South Bengaluru.
Record-Breaking Year for Bengaluru Housing
This year stood out specifically for Bengaluru’s residential sector. Quarterly launches averaged at 12,000 units, reflecting the strong demand but also a deep confidence among developers to scale up their supply. The festive season also aided this growth in the Q4. It pushed launches to one of the highest quarterly levels seen in the past couple of years.
Most sales come from the East Bengaluru region and account for approximately 45 per cent of Q4 supplies. These micro-markets continue to benefit from the existing IT corridors, improved infrastructure and relatively competitive pricing in the core of Bengaluru.
On an annual basis, the balance was more in favour of the southern parts of the city. South, South-East, and South-West Bengaluru together contributed to 40 per cent of the total launches in 2025. Followed by North Bengaluru, with 34 per cent, while East Bengaluru accounted for around 23 per cent of the annual supply.
This distribution highlights how the city is expanding in multiple directions, rather than being concentrated in the core.
Luxury Housing In Bengaluru
One of the defining features of Bengaluru 2025’s residential real estate was the dominance of high-end luxury residential segments. In Q4 2025, the luxury segment accounted for 53 per cent of all launches, which is just slightly more than the previous quarter. For 2025 entirely, high-end launches took 50 per cent of total launches.
The difference between high-end and mid-segment launches is stark. While high-end and luxury launches grew by 60 per cent year-on-year, the mid-segment launches only grew by 20 per cent. This difference reflects the changing buyer priorities and sentiments, where spacious homes and lifestyle-driven developments are on their priority list.
North vs South Bengaluru
Even though Bengaluru was leading in the residential sales, the location mattered a lot. The contrast between North and South Bengaluru showed a reality in the buyer sentiment and how the developers tackle it. North Bengaluru accounted for 16 per cent of the launches in Q4 and 34 per cent of the yearly statistics. In contrast, South Bengaluru was leading with residential sales, and the numbers were steady and dominating the residential game of Bengaluru.
The residential market in Bengaluru enters 2026 with a strong foot, which is supported by GDP growth, low inflation and a stable market. The current cycle also warns of segmented buyer focus on luxury housing, almost neglecting affordable housing in the city. While premium housing thrives and the city’s corridors gain even more importance, the lack of growth in affordable housing can pose long-term challenges in sustainable housing.
