India's residential real estate market has sustained its upward momentum, with premium and luxury housing emerging as the dominant demand segment. Markets such as Bengaluru have recorded double-digit price appreciation, reflecting buyer conviction even as volumes stabilise. Despite a slight year-on-year sales plateau in Q3 2025 with around 14,538 units sold in Bengaluru, roughly flat from 14,604 in Q3 2024, the city’s residential market continues to attract premium demand, Knight Frank data shows.

In an interaction with Fortune India, Pavan Kumar, founder and CEO of Bengaluru-based luxury real estate developer White Lotus Group, unpacks how buyer expectations in Bengaluru are evolving. Edited excerpts:

1) Over the last year, what major shifts have you observed in the expectations of affluent urban homebuyers in Bengaluru?

Over the past 12-18 months, Bengaluru’s affluent buyers have moved from “bigger and flashier” to “better designed and more grounded.” This is showing up clearly in the numbers: most new launches in the city in 2025 are now in the ₹1-5 crore premium bracket, where buyers are paying for planning, privacy, and long-term liveability rather than raw square footage.

For White Lotus, this aligns closely with our own belief that homes should feel like sanctuaries, not showpieces. Many of our buyers are second- or third-time homeowners - tech founders, CXOs, HNIs, and returning NRIs who have already possibly lived in large gated communities and now seek fewer neighbours, quieter addresses, and emotionally resonant design. They are asking very specific questions: “How many homes per acre?”, “Where does my morning light come from?”, “How is heat managed without over‑air‑conditioning?” That’s where boutique scale, Vaastu‑aligned planning, and a strong connection to nature have become non-negotiable.​

What is interesting is that this is not a niche trend. Institutional reports now show that Bengaluru’s prime homes have seen around 10% year‑on‑year price growth in 2025, putting the city in the global top five prime markets, yet volumes in the premium segment have held steady. That tells you this is conviction-led demand: people are consciously choosing “quiet luxury” in the ₹1-5 crore band as their primary home, not as a speculative bet.​

2) With luxury and mid-premium demand staying strong despite price escalations, what does this indicate about the mindset of today’s upscale consumer?

The resilience of luxury and mid‑premium demand, even as prices inch up, shows that upscale buyers now think like long-term “quality of life investors” rather than short-term speculators. Across India, about 60%+ of home sales in H1 2025 are already above ₹1 crore, and in Bengaluru specifically, capital values are rising faster in premium micro‑markets than in mass housing corridors.​

Three behaviour shifts stand out in Bengaluru: Buyers are prioritising the character of a location over mere pin code prestige, they are showing increasing intolerance for execution risk, and homes are being seen as multi‑generational anchors.

Areas with proven social infrastructure, reputed schools, cultural life, and future connectivity are commanding sustained premiums, which is why North Bengaluru and established heritage neighbourhoods continue to see robust absorption.​ 

In a market where overall launches dropped by over 30% in Q2 2025 while premium launches rose as a share, buyers are gravitating to developers with repeatable design quality, predictable delivery, and coherent philosophy, not just aggressive pricing.

For a lot of our clients, especially founders and global professionals who have experienced volatile asset classes, a well-designed, well-located Bengaluru home is a stabiliser for both family life and wealth. That is why, in conversations, the question is rarely “Can I get it cheaper?” and more often “Will this home still feel relevant 15-20 years from now?”.​

3) Buyers today are highly selective, from layouts to ventilation to bespoke finishes. What are the three design elements that have become non-negotiable in luxury residences?

Bengaluru’s luxury buyer in 2025 is interrogating design at a much deeper level, from heat gain and wind direction to where they will host their parents or teenage children five years from now. For us, three elements have become absolutely non‑negotiable:​ Concept, clarity and craftsmanship, personalisation as a design system, not a one‑off favour and rooted, and sustainable materiality. Every project begins with a sharp idea, often anchored in a local narrative or landscape, and everything from density to detailing must serve that idea. 

In terms of personalisation, affluent buyers are no longer satisfied with standard layout options but want homes that reflect their identity; whether that’s a meditation terrace, a skylight across the living spaces, or a study that transforms into a relaxation zone. 

There is also a visible shift towards materials that are climate‑appropriate, low‑maintenance, and emotionally warm. Affluent buyers are asking about energy efficiency, water security, and long‑term operating costs; they want homes that are gentler on the planet but also feel timeless, not trendy.

4) Bengaluru’s luxury market has outperformed most metros in price appreciation. What unique factors are driving this consistent demand?

Bengaluru has quietly become one of the world’s most dynamic prime residential markets. In Knight Frank’s Prime Global Cities Index for Q2 2025, the city ranks among the top five globally, with around 10.2% annual growth in prime property values, ahead of Mumbai, Delhi, and several traditional luxury hubs. Yet what makes Bengaluru different is that a large share of this demand is still end‑user driven rather than speculative.

Several structural factors are at play. The city’s tech ecosystem, startup culture, and global capability centres continue to attract high‑earning professionals and entrepreneurs, many of whom choose to put down long‑term roots here. 

North Bengaluru, in particular, has seen a sharp pick‑up in both prices and launches, supported by expressways, airport connectivity, and emerging social infrastructure. Knight Frank and JLL data both point to premium and high‑end projects forming a growing share of new supply, even as overall launch volumes are moderated. 

Unlike some Indian metros where luxury buying is often status- or investment-led, Bengaluru benefits from a relatively temperate climate, strong schools, and a cosmopolitan yet laid‑back culture, which encourages people to make this their primary residence.

5) Looking ahead to 2026, what do you foresee as the next big shift in premium housing, in terms of design, technology, or consumer preferences?

By 2026, premium housing in Bengaluru will be defined less by abundance and more by alignment between space and lifestyle, between technology and calm, between materiality and climate. Features like clear spatial zoning, strong natural light, cross‑ventilation, Vaastu‑sensitive planning, and acoustical comfort will no longer be seen as differentiators; they will be the minimum expectation in the ₹1-5 crore bracket ans above. 

Upscale buyers will expect integrated, low‑friction technology such as smart access, energy monitoring, air and water quality management, that quietly improves health and convenience without turning the home into a gadget showroom. 

As regulations tighten and climate realities become harder to ignore, there will be greater emphasis on low‑footprint construction, long‑life materials, and communities designed around water security, shade, and biodiversity. For White Lotus, this is less a future pivot and more a continuation of what we already practice.