Bangalore Sees a 15% Increase in Residential Property Prices Annually, Beating Most Metro Areas
Bangalore's real estate scene is thriving. In Q3 2025, house prices soared 15% year-on-year compared to last year's figures, according to Knight Frank's latest findings. This marks the second-largest jump after the 19% rise in the NCR region among India's leading metropolitan cities.
Propertywala.com and Anarock studies echo this, verifying a 15-20% growth trend throughout 2024. Developers introduced an unprecedented 12,844 new units in Q3 2025, a 43% surge compared to last year, primarily focusing on upscale housing.
Why Is Bangalore In Front?
The city pulls in IT experts, startup founders, and non-resident Indians (NRIs). Special micro-regions are thriving:
- Sarjapur Road: High demand for upscale homes.
- Whitefield: IT centre driving rapid sales.
- North Bangalore: Areas like Devanahalli, Yelahanka, and Thanisandra Road have seen 60% of new launches.
Even standard 2BHK homes under ₹1 crore are scarce in these localities. High-end properties are growing: homes over ₹1 crore account for 52% of Q3 transactions, a 15% year-on-year jump.
Sales and Supply Shifts
In Q3 2025, Bangalore moved between 14,538 and 16,840 units, either steady or up 21% annually, depending on reporting. Compared to other leading cities in India, the top eight sold 87,603 units, experiencing a modest 1% rise year-over-year despite levelling concerns.
While new launches fell slightly overall, Bangalore defied the trend with +28-43% growth. Rental prices held steady while capital values climbed 6-7% every year city-wide.
| Market | Price Growth YoY (Q3 2025) | Main Factor |
|---|---|---|
| NCR | 19% | High-end demand |
| Bangalore | 15% | IT and NRI investors |
| Hyderabad | 13% | Shift to premium properties |
Changing Focus to Premium Housing
First-time buyers looking for luxury properties are opting for homes priced over ₹1 crore. From last year, these now make up 48% of all sales compared to 28% in the ₹1-2 crore range. Experts like Gulam Zia have spotted: "Upscale real estate rules the roost".
Help comes from easy financing, bank partnerships and grants, which are fostering deals. Shishir Baijal of Knight Frank forecasts a longer extended equilibrium following five years of growth.
What This Means for Buyers
Act quickly if you're after budget homes. NRIs and startup entrepreneurs are grabbing properties fast amid consistent office demand. The north and east parts of the city show the fastest price increases.
Compared to other cities like Pune, Bangalore remains strong, ignoring global economic troubles. This momentum draws investors' eyes. With festivals approaching, demand could accelerate further. Bangalore remains a top contender in India's residential housing market.