Bengaluru real estate: Millennials fuel demand for ₹1–2 crore homes in the tech capital
Bengaluru real estate: The city's tech job market attracts young, mobile homebuyers; Millennials estimated to drive almost 50% of housing demand
Millennials in Bengaluru are driving a sharp rise in demand for homes priced between ₹1–2 crore, as developers increasingly target this segment of young, salaried buyers. Real estate experts attribute the trend to the city’s strong tech-driven job market and attractive rental yields, which are pushing demand in the premium mid-range category.
According to Knight Frank India’s report, this price bracket recorded the highest number of launches and sales, almost 12,429 units, in the first half of 2025. This signals a new wave of aspirational homeownership led by mobile buyers in the 30–40 age group.
"In Bengaluru, where the job market is strong and heavily tech-oriented, the buyer demographic tends to be younger and more mobile. As a result, millennial demand could be as high as 50%, depending on the city's income and age profile. While Gen Z is also entering the job market, most of them still don’t have the income or creditworthiness to finance a home. So, for the ₹1–2 crore segment, millennials remain the most active," Vivek Rathi, Head of Research at Knight Frank India, told HT.com.
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Why are millennials choosing ₹1–2 crore homes?
Real estate experts say in cities like Bengaluru, a majority of millennial buyers are first-time homebuyers. "There are two buyer profiles here; one is the age group, and the other is the usage background, whether they are buying for self-use, upgrading, or investing," Rathi said.
From an investment perspective, experts point out that rental yield is also a key factor. As the property value increases, rental yields typically decrease, because tenant affordability does not scale at the same rate. "That said, the ₹1–2 crore, or even ₹1–3 crore, price bracket still offers decent room for rental income, enough to keep investors interested," Rathi said.
Local real estate brokers in Bengaluru also point out that most buyers in the ₹1–2 crore range are either first-time millennial homeowners or second-home investors, largely working professionals in between 30s and 40s.
"A lot of millennials are now upgrading to larger apartments or buying homes for their parents," according to Sunil Singh, a realtor at Realty Corp. He said that some buyers begin with a budget under ₹1 crore but eventually stretch to ₹1.2–1.5 crore for better amenities and space. “We had a client looking for 2BHK under ₹1 crore. Six months later, they booked a 3BHK for ₹1.5 crore in a gated society near Budigere."
Where are these apartments located?
Real estate experts say the ₹1–2 crore flats are concentrated in emerging and well-connected suburbs. In North Bengaluru, areas like Bagalur and neighbourhoods closer to the IT corridor around Hebbal, such as Hennur and Kothanur, are witnessing a sharp rise in new launches and housing demand. Projects here offer 3BHKs in the ₹1.3–1.8 crore range, with sizes of around 1,400–1,500 sq ft. Smaller 2BHKs of 950 sq ft are available for ₹80 lakh to ₹1 crore.
In East Bengaluru, localities like the eastern IT corridor of Whitefield, Budigere Cross, and Old Madras Road are in demand for new launches and sales in the segment. Brokers say 2BHK and 2.5BHK homes ranging from 900 to 1,400 sq ft fall within the ₹90 lakh to ₹1.5 crore range.
South Bengaluru is also catching up, with gated communities offering 2 and 3BHK apartments on Kanakapura Road, Mysuru Road, and Electronic City, starting at around ₹1 crore.
For those eyeing central Bengaluru, the options shift to the resale market. Prime areas like Indiranagar and Koramangala still offer 1,200–1,400 sq ft flats in older but well-maintained Grade A societies. “These homes are in high demand even if they are over a decade old, mainly because of their location and community feel,” Singh noted.
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Housing launches dominate ₹1–2 crore segment
The ₹1–2 crore bracket led the city’s launches with 16,255 new units, up 44% year-on-year, while the ₹2–5 crore range also saw a substantial jump, clocking 8,019 units, more than double the previous year’s figures. Together, these two segments accounted for a staggering 72% of all new launches in Bengaluru during H1 2025, signalling a developer pivot toward more aspirational housing, as per the Knight Frank report.
On the other hand, launches in the budget categories declined. The sub- ₹50 lakh segment added only 2,005 new units, and the ₹50 lakh– ₹1 crore segment saw 6,749 units—marking a retreat from affordable housing amid changing demand dynamics, the report noted.
