Bengaluru real estate prices: Over 42% of homebuyers can no longer afford sub- ₹1 crore homes
Bengaluru homebuyers faced an affordability crunch in 2025, with 42% of prospective buyers in the sub- ₹1 crore segment no longer able to purchase a home amid a steep rise in property prices. This comes even as demand for budget housing in the segment rose 13% year-on-year. However, supply has failed to keep pace as developers increasingly shift their focus to higher-margin projects, grappling with rising land costs, according to a report by NoBroker.
“Resale is providing some respite as budget inventory is available there. However, in the primary market, most middle-class buyers are facing a real crisis,” a NoBroker spokesperson said.
Real estate experts said the widening mismatch between demand and available inventory is pushing first-time buyers towards Bengaluru’s peripheral areas and forcing many to defer purchase decisions altogether.
The report noted that developers are prioritising premium and higher-margin projects to offset escalating land prices and protect profitability. This strategic shift is shrinking the availability of homes priced below ₹1 crore, particularly in prime, city-centric locations.
Saurabh Garg, CEO of NoBroker, said that a significant share of buyers seeking homes under ₹1 crore are effectively priced out, as developers decide not to prioritise this segment. “While buyers in the ₹1 crore-plus bracket are still able to find options, decision-making is slowing due to slow job growth and economic uncertainty. In the higher segments, we see a slowdown in sales as people take more time and evaluate more options,” he said.
“Resale is giving some respite as there are budget inventories available; however, in the primary market, most of the middle-class buyers are facing a real crisis,” he said.
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New launches skewed towards premium and luxury housing
The NoBroker report said that Bengaluru’s home launches in 2025 reflected a shift toward premium and high-end residential offerings. Luxury housing accounted for 35% of all new supply in 2025, with high-end projects contributing another 28%.
“While the affordable segment remains significantly underrepresented at just 7% in 2025, down from 9% in 2024. This segmentation underscores a market increasingly skewed toward premium residential products, driven by higher margins in the luxury space,” it said.
Homes priced below ₹1 crore, traditionally considered the affordable and mid-range categories, have also seen a decline in their share of new launches, from 37% to 31%, over the same period.
“This widening gap between demand and new supply has resulted in a significant affordability crunch. Thus, nearly 42% of prospective homebuyers in the sub- ₹1 crore segment are now effectively priced out of the market, unable to find suitable inventory within their budget,” it said.
Budget inventory limited within city limits
The supply of homes priced below ₹1 crore in Bengaluru has shrunk within central and established neighbourhoods, according to real estate brokers.
Kiran Kumar of Hanu Reddy Realty said that the combination of escalating land values and construction costs has pushed most developers to shift their focus toward larger 2–3 BHK configurations with higher ticket sizes, effectively sidelining the budget segment.
He explained that buyers looking for homes within ₹1 crore have almost no options in the central business district (CBD) or city centre areas. The only available stock tends to be decades-old apartments, often lacking modern amenities.
“In the city centre, you may find 30–40-year-old buildings. Even so, such options are limited and quickly snapped up,” he said.
Prices in Bengaluru up almost 12% YoY in 2025
Bengaluru’s residential property prices have surged by nearly 12% year-on-year in 2025, to ₹7,388 per sq ft on average, according to data by Knight Frank.
Among the top areas, Tumkur Road led with an 18% year-on-year surge, driven by industrial expansion, metro connectivity, and emerging logistics hubs. Bannerghatta Road follows with a 14% increase, supported by strong end-user demand and the absorption of new residential supply.
Among the IT corridors, Sarjapura Road recorded a 12% rise. Whitefield, one of the city’s most active IT corridors, registered an 11% increase. In the north, Thanisandra and Hebbal experienced a 10% and 9% surge in home prices, respectively, in 2025.
Also Read: Housing sales in top eight cities hit 3.48 lakh units in 2025, down 1% YoY; NCR sees 19% price rise: Knight Frank
Homebuyers pushed to peripheral locations as sub- ₹1 crore home options decline
Kumar pointed out that in prime micro-markets such as Whitefield and Hebbal, current rates of ₹15,000 to ₹18,000 per sq ft place even mid-sized 1,200 sq ft units firmly in the ₹2 crore bracket.
“At these prices, the sub- ₹1 crore category is simply not feasible for developers or buyers,” he said. As a result, the realistic choices for budget buyers lie far outside the city’s core.
New launches offering 2BHK units around ₹1 crore are now typically located 15–20 kilometres from key economic hubs. Areas such as Kengeri, Jigani, Doddaballapur Road, and the outer belts beyond Varthur and Sarjapura continue to offer limited inventory within this price segment, he said.
In the city’s southern corridor, even buyers with a ₹1 crore cap must look beyond the established Kanakapura Road stretch. However, these peripheral options come with trade-offs.
Kumar cautioned that many of these projects are led by local or mid-sized developers rather than Grade A, which can affect construction standards, community infrastructure, and long-term value appreciation. Distance from employment hubs and limited civic infrastructure are also challenges.
