Housing sales in Bengaluru fell by 8% year-on-year in Q2 2025, dropping to 15,100 units from 16,350 units in the same period last year, even as average property prices surged by 12%, according to ANAROCK’s Q2 2025 report.
The report attributed the dip in sales to affordability concerns driven by sustained price hikes through FY2024, which have prompted greater caution among both homebuyers and investors amid ongoing global uncertainties. Developers are expected to recalibrate new launches and pricing strategies, with the aim of restoring balance in the market by late 2025.
Market momentum moderated amid continuous price hikes in FY2024 that made homes less affordable, leading buyers and investors to be more cautious, especially given global uncertainties.
"After a period marked by aggressive launches and record sales, developers are now exhibiting a more cautious and quality-focused approach. This quarter, the emphasis has noticeably shifted to completing ongoing projects and refining delivery standards rather than aggressively adding to supply," Anuj Puri, chairman of ANAROCK Group, said.
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Inventory rises sharply, but absorption remains stable
Bengaluru saw a 30% year-on-year increase in available inventory, the steepest jump among the top 7 Indian cities, with the number of units rising to 58,900 from 45,400 units last year.
{{/usCountry}}Bengaluru saw a 30% year-on-year increase in available inventory, the steepest jump among the top 7 Indian cities, with the number of units rising to 58,900 from 45,400 units last year.
{{/usCountry}}New launches in Bengaluru declined by 26% quarter-on-quarter, from 20,850 units in Q1 to 15,350 in Q2 2025. The report said this marks a strategic pause as builders focus more on clearing existing inventory and completing under-construction projects rather than adding fresh supply.
"The dip in new launches reflects a maturing real estate landscape, where developers are aligning supply with real-time demand trends and exercising strategic caution amid global economic uncertainties," the report said.
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Prices jumped 12% annually
Despite the moderation in sales, Bengaluru recorded a strong 12% annual rise in base selling prices, reaching an average of ₹8,720 per sq ft. This makes it the second-highest price gain among the top metros after NCR (27%), pushing affordability beyond the reach of many buyers and ultimately dampening demand across segments, the report said.
Luxury ( ₹1.5–2.5 crore) and ultra-luxury ( ₹2.5 crore and above) housing segments saw increased activity in Bengaluru. The share of ultra-luxury homes in new launches rose from 10% to 14% over the quarter, reflecting rising demand from buyers, NRIs, and professionals upgrading post-pandemic.
At the same time, affordable housing (under ₹40 lakh) was almost missing from the new launch mix, as developers continue to prioritise higher-margin segments amid rising land and construction costs. This has made it more difficult for first-time homebuyers to enter the market, further impacting sales in lower budget brackets, the report said.
Developers may recalibrate launches and pricing going forward
The report suggests that, like several top cities, Bengaluru’s real estate market is moving toward a phase of recalibration.
"Market momentum has moderated as sustained price hikes in FY2024 impacted affordability, prompting caution among buyers and investors amid global uncertainties. Developers are likely to recalibrate launches and pricing, aiming for more balanced conditions by late 2025," it said.