The housing market in Bengaluru continues to evolve and thrive, proving itself resilient, adaptive, and full of opportunity. Bengaluru’s real estate narrative is no longer defined by extremes of affordability or luxury but by the steady and confident rise of the mid-segment housing market. This reflects the growing preference for homes that balance aspiration with affordability.
The current momentum is powered by major infrastructure development across the city. This includes metro extensions, new transport corridors, and expanding social infrastructure across Bengaluru’s north, east, and southeast. The result is consistent absorption and sustained demand for mid-segment homes. These changes are redefining what ‘livable’ means and expanding the city’s housing map far beyond traditional boundaries.
While mid-market housing continues to flourish, the premium segment shows signs of fatigue. It points to affordability pressures that are making homebuyers in this category more cautious. They are taking longer to decide, negotiating harder, and waiting for better value. Developers, in turn, are offering flexible payment plans and discounts, yet sales momentum remains sluggish.
The reasons are clear: rising ticket sizes have stretched purchasing power, while income growth has not kept pace with housing prices. Add to that global economic uncertainty and job transitions in the technology sector. As a result, buyers are cautious about big-ticket purchases — and understandably so.
Homes priced between ₹65 lakh and ₹1 crore continue to form the core of Bengaluru’s housing demand. These homes cater to salaried professionals earning between ₹10 and ₹20 lakh annually. Moreover, household incomes in this bracket have grown steadily, from ₹18 lakh-₹25 lakh in 2022 to ₹22 lakh–₹30 lakh in 2024. This allows for greater comfort and confidence in home-buying decisions.
This set of homebuyers is pragmatic yet aspirational. They seek well-connected homes with strong social infrastructure and are aware that waiting too long could make ownership harder. The result is a sense of urgency that fuels steady demand. This blend of caution and aspiration makes the mid-segment uniquely resilient, reflecting not only market strength but also the mindset of the modern Indian homebuyer.
Adapting fast
Developers are clearly reading the signals and realigning portfolios to focus more on the mid-segment housing market. It offers a more stable, scalable growth path than the affordable or luxury categories. They are also embracing modern construction technologies such as aluminium formwork, MIVAN (aluminium formwork system), and factory-cast components. These innovations reduce timelines, improve quality, and optimise costs.
The geography of growth is also shifting. A majority of new launches in Q3 2025 came from North Bengaluru — around Devanahalli, Yelahanka, and Thanisandra — thanks to the upcoming Blue Line metro. In East Bengaluru, Whitefield and Old Madras Road were prime areas of growth, while in the South and Southeast, Sarjapur Road, Electronic City, HSR Extension, and Kanakapura Road saw notable traction. These areas, once considered peripheral, are now vibrant growth corridors.
Overcoming challenges
After years of slowdown triggered by demonetisation, GST, RERA, and the pandemic, the real estate industry is finally experiencing strong price escalation and revived demand. However, the recovery coincides with rising construction costs caused by higher raw material prices and labour shortages. Across India, prices have moved upwards, but Bengaluru’s surge has been sharper — driven by end-user demand and a growing migrant workforce.
Despite these price increases, rents have remained largely stable, keeping mid-segment homes both active and aspirational. The mid-segment today is Bengaluru’s confidence zone — a reflection of its economic strength and long-term potential.
Additionally, the recent change in GST rates on cement has come at an opportune time for the housing market, as this reduction is expected to bring down project costs to some extent. While ongoing or near-completion projects may see limited impact, upcoming projects are likely to pass on these benefits to buyers. This translates into lower ownership costs, making it highly attractive for first-time and mid-segment buyers. To sustain this momentum, policy support will be critical. The government should consider extending the 1% GST benefit for affordable housing to homes priced up to ₹65 lakh–₹75 lakh (from the current ₹45 lakh). This would help bring more projects and buyers under the affordable housing bracket, making homes more accessible to the common man.
For investors, developers, and policymakers, the mid-segment will remain the most reliable barometer of Bengaluru’s housing health. It represents not just data points, but the optimism, resilience, and aspirations of a city that continues to build its future confidently.
The writer is managing director of Sowparnika Projects.
Published – November 14, 2025 06:24 pm IST
