The Bengaluru real estate market exhibited resilience in the first quarter of 2026, with a sales increase of 5%, reaching 13,092 units. This growth stands in stark contrast to declines observed in other major cities such as Mumbai, Delhi-NCR, and Pune, where sales fell by 7%, 11%, and 11%, respectively. The city's performance reflects a strong demand for residential properties, particularly in the mid to premium segments, as noted by Rahil Gibran, National Director, Occupier Strategy and Solutions at Knight Frank India. While affordable housing categories, particularly those priced under ₹50 lakh, experienced significant contractions, the luxury segment, especially homes priced between ₹10-20 crore, showed notable expansion, albeit from a low base.
Despite a slight overall decrease in new supply, dropping by 2% to 94,855 units during the quarter, Bengaluru maintained a steady pace of launches, distinguishing itself from other markets where activity slowed. Notably, the National Capital Region (NCR) faced the most pronounced decline in new launches, decreasing by 8% year-on-year, while Hyderabad and Kolkata saw a reduction of 6%. In contrast, Bengaluru, Chennai, and Ahmedabad managed to sustain a healthier launch environment, indicating a potentially more favorable outlook for these markets.
The demand dynamics in Bengaluru have increasingly favored the higher-end segments of the market. Sales for properties priced above ₹1 crore surged by 11% year-on-year, highlighting a significant shift away from the more affordable segments, which contracted by 23% and 12% in the sub-₹50 lakh and ₹50 lakh-₹1 crore categories, respectively. The ₹1-2 crore segment emerged as a key driver of this growth, representing 29% of total sales and increasing by 10% year-on-year. Additionally, premium categories experienced robust traction, with sales in the ₹2-5 crore segment rising by 17%, and an impressive 80% surge in the ₹20-50 crore bracket, showcasing the evolving preferences of homebuyers in Bengaluru.
As the market continues to evolve, Bengaluru's real estate sector demonstrates a strong capacity for resilience and adaptability, positioning itself as a favorable destination for both investors and homebuyers. The ongoing trends indicate a shifting landscape, where demand for luxury and premium housing will likely shape future developments in the city. Stakeholders will need to closely monitor these trends to align their strategies with the changing preferences of consumers, ensuring sustained growth in this vibrant real estate market.