Bengaluru Housing Sales Surge 14% to 52 Million Sq Ft in H1 FY2026: ICRA

Bengaluru Housing Sales Surge 14% to 52 Million Sq Ft in H1 FY2026: ICRA

Bengaluru's residential market has recorded a strong 14% year-on-year increase in sales volume, reaching 52 million square feet from April to September 2025. Credit rating agency ICRA calls this growth a sign of the city's lasting charm, especially for mid-income and luxury buyers.

Developers point out that demand remains solid despite previous downturns. Annual sales dipped slightly, going from 102 million sq ft in FY24 to 99 million sq ft in FY25. However, the first half of FY2026 saw a sharp recovery.

Key Drivers Behind the Boom

What drives this resilience? Tech professionals and newcomers from global capability centres are at the forefront. Buyers are now looking for integrated living, homes that reduce commuting time and offer advanced amenities, especially given Bengaluru's notorious traffic congestion.

• Mid-income and luxury demand: These segments have been steadily growing. In H1 FY26, luxury launches have for the first time surpassed mid-income projects, making up 49% of total sales.
• Shifting preferences: Since FY23, there has been a noticeable shift. Buyers are opting for larger premium units instead of basic ones. Now, affordable housing accounts for just 6% of sales after a significant 41% decline.
• Stable job market: The IT sector, startups, and global capability centres are drawing high earners who are looking to settle down for the long term.

ICRA anticipates 3-5% growth for the full FY2026. Sales in the second half are expected to align with last year’s figures, with a rise in launches planned for Q4.

Bengaluru's National Standing

Bengaluru stands fourth among India’s top housing markets, behind MMR and Delhi-NCR, alongside Hyderabad, Pune, Kolkata, and Chennai. It accounted for roughly 14–15% of total sales between FY21 and FY25.

Supply is rising steadily. About 124 million sq ft was launched in FY25, reflecting strong growth over the past few years. The momentum continues in FY26, with further expansion expected.

Demand remains solid, especially for homes priced between ₹2–3.5 crore, supported by smoother processes like e-khata and steady buyer interest.

What Lies Ahead for Buyers and Builders?

Organised developers are taking charge with better planning. Inventory levels are matching demand, which helps reduce risks. However, ultra-luxury sales have slowed down a bit, leading to more cautious launches.

This momentum positions Bengaluru as a reliable bellwether for India's real estate market. Buyers should keep an eye on Q4 for new updates, while investors can expect a reliable uptick.