Market Correction Signals Shift in Bengaluru Real Estate
Bengaluru's real estate scene is seeing a big change. Housing sales dropped by 8% year-on-year in Q2 2025, falling to 15,100 units from 16,350 units last year. This drop happens even as average property prices rose by 12%, marking an emerging buyer's market, according to industry experts.
Inventory Buildup Reaches Critical Levels
The city saw a huge 30% year-on-year rise in available inventory, hitting 58,900 units compared to 45,400 units last year. This is the steepest inventory jump among India's top seven cities, showing an 11-month supply overhang that developers need to tackle.
New project launches fell by 26% quarter-on-quarter, dropping from 20,850 units in Q1 to 15,350 units in Q2 2025. Developers are focusing on clear existing stock and finishing under-construction projects.
Affordability Crisis Drives Market Caution
Price hikes throughout FY2024 have created affordability issues that affect homebuyers and investors. The average base selling price now stands at Rs 8,720 per square foot, one of the highest levels in recent years.
Developers are now more cautious and focused on quality, shifting the emphasis toward project completion rather than supply expansion.
Strategic Recalibration Expected
Analysts expect developers to adjust their launch strategies and pricing models to restore market equilibrium by late 2025. This adjustment period offers opportunities for savvy buyers who can navigate the current landscape effectively.
The market's cooling signals a return to more sustainable growth patterns after years of aggressive launches and record sales volumes.