ICRA projects 3-5% rise in Bengaluru home sales in FY2026, new launches up 10-12%

Bengaluru's residential market is likely to see a 3-5% rise in area sold in FY2026, while new launches grow 10-12% year-on-year, according to an analysis by rating agency ICRA.

The agency said momentum was strong in the first half, with 52 million sq ft (msf) sold, up 14% from a year earlier. Bengaluru remains the fourth-largest residential market among India's top seven metros, accounting for 14-15% of total area sold, ICRA said.

What changes for buyers and sellers

ICRA said new launches are expected to be supported by comfortable inventory levels and improved processing of e-khata, Karnataka's digital property record. The agency's analysis points to more new projects reaching the market during the year.

The agency expects Year-to-Sell (YTS), the time needed to clear unsold stock at the current sales pace, to edge up to 1.2-1.4 years by March 2026. It described this as a comfortable level.

The sales estimate is a full-year projection based on first-half volumes. It is ICRA's assessment, not a figure from government or builder filings.

Asking prices in Bengaluru

Asking prices on PropertyWala put apartments for sale in Bangalore at about ₹10,095 per sq ft (2026 Q1 to 2026 Q4), down 3.6% on the year before.¹ Apartment rents average about ₹32 per sq ft, up 1.8%.

Over a longer period, the apartment asking rate rose from ₹6,796 per sq ft in 2022 to ₹7,458 in 2023, ₹10,089 in 2024 and ₹10,469 in 2025, before falling to ₹10,095 in 2026. Residential land for sale averages about ₹6,105 per sq ft, up 32.2% on the year before.

Apartments make up about 70% of listings in the city, residential land about 19% and independent houses about 10%. Projects range from ready-to-move developments to under-construction and new-launch ones.

Developers have continued to add land. Trade Brains reported in September 2026 that Prestige, Brigade, Godrej Properties and Puravankara had added land parcels across Bengaluru for residential projects. Business Standard reported in September 2026 that Prestige Estates launched a 10-acre residential project in Sarjapur with an estimated gross development value of ₹1,100 crore.

What to watch

ICRA's full-year numbers will depend on sales and launch data for the second half of FY2026. The agency's YTS range of 1.2-1.4 years will indicate whether inventory remains at comfortable levels as launches rise.

Readers can follow current apartments, land and houses on the Bangalore page on PropertyWala.