As sales stabilise, Bengaluru home prices surge on premiumisation push

Bengaluru has emerged as one of India's strongest residential price performers. With its mature professional base and design-conscious buyer pool, the city is emerging as a testing ground for what next-gen premium housing in India could look like, claim industry participants. While the country's tech hub saw a marginal 5% year-on-year decline in housing sales in 2025, with about 62,205 units sold, new supply remained resilient. The city added nearly 74,260 housing units during the year, a 5% annual increase, according to the last week's ANAROCK data. 

But, despite stable volumes, India's "Silicon Valley" recorded double-digit price appreciation. According to Knight Frank, the city recorded a 15% year-on-year increase in average housing prices in Q3 2025, which places it just behind NCR, which saw a sharper 19% rise, and ahead of peers such as Hyderabad (13%) and Chennai (9%).

This shows that even as transaction volumes are stabilising, Bengaluru's pricing momentum is pointing developers to exactly where they should focus on i.e. premiumisation, which focusses equally on scale, comfort, and liveability.

Industry participants agree with this assertion, saying one of the clearest trends that Bengaluru's market has seen is the fading relevance of spectacle. They believe buyers are no longer impressed by scale alone but would prioritise light, air, acoustics, maintenance, and longevity.

Pavan Kumar, Founder and CEO, White Lotus Group, says, "People who are overstimulated by the world outside and are searching for a home that helps them turn inward. A space that acts not as a stage for performance, but a sanctuary for restoration."

This inward turn reflects a broader trend that emerged post Covid as work and life blurred and homes turned into more than just passive backdrops. "For this evolved generation, luxury is no longer about how much, but how deeply. How deeply the space aligns with their values, rhythms, and emotional lives," he explains.

The premiumisation shift has significant implications for how high-end homes are conceived. Increasingly, Bengaluru's premium buyers are demanding measurable performance from their homes, and engineering certainty that goes beyond glossy brochures.

"The next generation of high-end homes in Bengaluru will be defined less by badges and more by measurable performance," says Vishal Vincent Tony, MD, Aratt Developers and Ayatana Hospitality. Structural robustness, MEP systems installed to tolerance, assured water supply with on-site redundancy, and drainage designed for real monsoon scenarios are now baseline expectations, not optional upgrades.

Equally important is what happens after possession. "Buyers now expect transparent defect-resolution timelines and professional O&M handovers that transfer performance accountability to the operator," Tony says, adding that luxury does not end at delivery anymore and that it extends into how a home is maintained and managed over time.

This convergence of emotional depth and technical rigour is shaping a more mature luxury narrative. According to Mayank Ruia, Founder and CEO, MAIA Estates, buyers are looking beyond aesthetics to the intelligence of a building and that there’s heightened attention to what lies beneath the surface. "Attention is on detailing, floor plate efficiency, façade performance, and how systems, acoustic and mechanical, are resolved behind the walls."

Taken together, these perspectives point to a fundamental redefinition of luxury housing in the city, and there is every reason to expect this trend to continue in 2026, as well.