ICRA Says Luxury Homes Drive Sales as Bengaluru Market Moves Upmarket in 2026

Luxury homes are driving India's residential sales. Luxury sales area rose 14% in 2025-26, while affordable housing fell 9%, ratings agency ICRA said in a report on August 26, as reported by Business Standard.

ICRA's figures cover the top seven cities, not Bengaluru alone. The agency said luxury and mid-income homes accounted for 46% and 34% of sales volumes in 2025-26, respectively, while mid-income sales area rose 2%. Total sales area grew 1.5% to 653 million sq ft (msf), the report said.

ICRA expects sales area to rise 2-5% to 665-685 msf in 2026-27, with average prices and launches both up 4-7%, according to an Upstox report on the agency's outlook. It said sales value could grow 8-11%, driven by premiumisation and a favourable product mix.

What it means for Bengaluru buyers

Bengaluru's own figures point in the same direction. Research firm CRE Matrix said in its September 2026 housing report that the city's sales value rose 25% year on year to ₹60,875 crore in the first half of 2026, the strongest growth among the large markets it covered. Volumes rose about 7% to 34,600 homes, while the average ticket size rose about 17% to ₹1.76 crore.

The ₹2-5 crore band accounted for 41% of Bengaluru's sales value, up from 32% a year earlier, CRE Matrix said. Business Standard noted on September 28 that buyers with a ₹2 crore budget in the city now enter a market where this band accounts for a much larger share of sales.

A report published on October 6 said high-end and luxury homes made up 68% of Bengaluru launches in the first quarter of 2026, up from 53% in the previous quarter. East and North Bengaluru accounted for 57% and 38% of city launches in that quarter, respectively. Prestige Estates launched a 10-acre project in Sarjapur in September, Business Standard reported, while Embassy Developments announced the 85-acre Embassy Origins in North Bengaluru, ET Realty reported.

For buyers on tighter budgets, this shift means fewer new launches to choose from. Sales below ₹50 lakh fell 14% across eight major cities in January-September 2026, according to a report carried by Hindustan Times on October 5.

Asking prices in Bangalore

Asking prices on PropertyWala put apartments for sale in Bangalore at about ₹10,079 per sq ft (2026 Q1 to 2026 Q4), down 3.7% on the year before.¹ Apartments for rent averaged about ₹32 per sq ft, up 1.8%.

Residential land for sale averaged 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 19% and independent houses 10%.

What to watch next

The Reserve Bank of India raised the repo rate by 25 basis points to 5.5% on October 7, Business Standard reported. ICRA chief economist Aditi Nayar said the move was in line with expectations and that near-term rate cuts were off the table.

Liases Foras expects festive-season launches to strengthen, Hindustan Times reported on October 7. Buyers can browse current apartments and houses in Bangalore on PropertyWala.