Bengaluru Housing Prices Skyrocket by 79% in Five Years
Bengaluru has become the top-performing real estate market among Indian cities, showing an extraordinary 79% increase in residential housing prices from 2020 to 2025. This growth surpasses all other major metros, showing a strong demand-supply balance driven by the city's booming IT sector and wealthy workforce.
Bengaluru's Real Estate Growth in Perspective
The 1 Finance Housing Total Return Index (TRI) shows that Bengaluru’s average housing price has climbed to ₹10,349 per square foot, a sharp rise compared to other metros:
| City | Avg. Price (₹/sq.ft.) | 5-Year Increase |
|---|---|---|
| Bengaluru | 10,349 | 79% |
| Kolkata | 8,179 | 61% |
| Delhi NCR | 23,378 | 47% |
| Pune | 10,920 | 45% |
| Hyderabad | 8,622 | 43% |
| Mumbai | 26,975 | 42% |
| Chennai | 8,519 | 21% |
Bengaluru’s impressive gain far exceeds the national average price rise of 48%, highlighting the city's growing appeal as a residential hotspot.
Drivers of Bengaluru's Housing Price Surge
Tech Industry Boom: As India’s IT capital, Bengaluru employs over one million tech professionals, many with rising incomes seeking residential ownership.
Demand-Supply Dynamics: Unlike other metros, Bengaluru and Delhi NCR have reduced unsold housing inventory, signalling strong absorption and sales momentum in residential real estate.
Population and Urbanisation: A steady influx of migrants and expanding urban infrastructure has amplified housing demand.
Investment Sentiment: Robust price appreciation has drawn investor attention and boosted demand.
Comparison With Other Indian Metros
While Hyderabad has seen a price increase of 43%, it faces a surge in unsold inventory by 177%, indicating oversupply issues. Conversely, Delhi NCR also experienced demand outpacing supply, resulting in declining unsold stock and a 47% price rise. Other metros like Mumbai remain the costliest but have not matched Bengaluru's growth rate.
Challenges for Homebuyers
Animesh Hardia, a senior researcher, notes that while existing homeowners benefit from price appreciation, prospective buyers face challenges:
Fear of buying at peak prices.
Pressure to make quick purchase decisions amid fast-rising costs.
Anxiety about potential market corrections.
This mix of excitement and caution shapes today’s residential market dynamics in Bengaluru.
What This Means for the Future
Bengaluru’s robust price surge and reduced unsold inventory signal a market with high absorption capacity and ongoing strong demand. However, affordability concerns may temper the pace of growth going forward. Buyers and investors should monitor market trends carefully, balancing enthusiasm with prudent decision-making.
Bengaluru continues to command attention as India’s leading residential real estate growth engine, driven by its tech-driven economy and vibrant housing demand. The coming years will reveal whether this rapid ascent stabilises or continues its impressive momentum.