Bengaluru bucks national trend as mid-premium housing demand surpasses luxury: Sattva Group MD Bijay Agarwal
Sattva Group MD Bijay Agarwal says demand is rising for ₹1–4 crore homes, signaling a shift toward premium mid-segment over ultra-luxury housing
Bengaluru’s real estate market is defying the national shift toward luxury housing, with growing demand focused on the mid-premium segment. According to Sattva Group Managing Director Bijay Agarwal, homebuyers are showing strong interest in properties priced between ₹1 crore and ₹4 crore, indicating a clear preference for practical, premium mid-segment homes over ultra-luxury offerings.
To meet this rising demand, the company plans to launch 9 million sq ft of mid-premium housing and select luxury projects in key growth corridors such as Mysuru Road and Old Madras Road.
"The real estate sector in the city is largely a consumer-driven market, not dominated by investors. So most of the demand we see isn’t speculative. NRIs are coming in a big way, especially to Bengaluru and Hyderabad. For most NRIs, Bengaluru is the first choice; it’s a startup hub, a tech capital, and a truly cosmopolitan city. Here, luxury housing demand remains limited, largely due to low supply in that segment. What we consistently see is strong demand in the mid and upper-mid segments,” he said.
Agarwal pointed out that property prices in the city have surged by 40–60% over the past two years, but a more moderate 20% increase this year suggests a stabilising market.
“In Bengaluru, over the last 2-3 years, property prices have gone up by 40–60%. This year, the increase is around 20-25%, and the growth rate has begun to stabilise with a gradual increase in prices. We’re seeing a slight deceleration in the rate of price growth this year, and the market is maturing, which is actually a healthy sign,” Agarwal said.
In Bengaluru, the company plans to develop premium to luxury residential projects, sprawling 9 million sq ft, with ticket sizes between 1-4 crore in western parts of the city, like Mysuru Road and Old Madras Road, in the west and eastern parts of the city.
Sattva Group has already launched a residential project near Kempegowda International Airport and another large-scale development in North Bengaluru spanning 5.9 million sq ft and comprising 3,900 flats.
"We are also preparing to launch an additional project in the airport corridor. Further expansions are planned across key growth zones, including a 1 million sq ft development on Mysuru Road towards the western part of the city and a 1.2 million sq ft project on Old Madras Road in the east, scheduled to launch between June and September this year," he said.
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Sattva aims for ₹6,000 crore in FY26 sales across Bengaluru, Goa, Hyderabad and Mumbai
Overall, Sattva Group plans to clock ₹6,000 crore in home sales for FY26, up from ₹3,500 crore in the previous fiscal, Agarwal told HT.com.
The real estate developer plans to launch around 18 million sq ft of residential space by the end of the financial year across key cities including Bengaluru, Hyderabad, and Goa.
"Of this, 2.3 million sq ft has already been launched, while more than 11 million sq ft is currently under construction. To date, we have delivered over 31 million sq ft of homes across about 50 residential projects across cities," Agarwal said.
"The steady year-on-year growth is being driven by a combination of strong project execution and timely launches in high-demand micro-markets," he said.
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Mumbai and Hyderabad in focus
This year, Sattva Group expanded its footprint into Mumbai and is set to launch a project in the first quarter of the next financial year in south Mumbai, with land acquisition already completed. This upcoming development will cater to the luxury segment, with homes priced between ₹4 crore and ₹8 crore.
Hyderabad will see 5–6 million sq ft of luxury and ultra-luxury launches later this year. According to Agarwal, the company is targeting prime micro-markets like Kokapet and HITEC City, driven by robust infrastructure, a thriving IT ecosystem, and strong demand from both NRIs and domestic buyers. These factors, he noted, make the region an attractive destination for high-end residential investment.
"Homes in Hyderabad will be priced between ₹3 crore and ₹10 crore, surpassing Bengaluru’s range of ₹1 crore to ₹4 crore," he said.
In Goa, a market that Agarwal considers a niche but a promising luxury destination, the company is following up on its recently launched phase 2 of the villa project with two more projects in the pipeline, one plotted development and an apartment project. These new projects are expected to launch within the next 6-8 months.
