Posted on by Abhishek Kiran Gupta

Bengaluru’s Luxury Housing Market Crosses ₹1,000 Crore in Sales

Bengaluru’s luxury housing market hit a historic milestone in FY 2024–25, with cumulative sales of homes priced at ₹10 crore and above crossing ₹1,000 crore for the first time. As highlighted in the Luxury Housing Report FY’24–25 (Bengaluru) by India Sotheby’s International Realty and CRE Matrix, the segment witnessed nearly 59% year-on-year growth, underscoring the city’s growing stature in India’s high-end residential landscape.

Luxury Sales Accelerate Despite Limited Supply

The ₹1,000-crore milestone was achieved with a relatively small number of transactions—fewer than 150–200 ultra-luxury units. The popularity of the exceptionally high ticket sizes in this segment deserves recognition. Average deal values ranged between ₹10 crore and ₹25 crore per home, with select transactions surpassing this range.

Apartments priced between ₹10–12 crore witnessed the strongest demand, offering buyers a balance between exclusivity, size, and practicality. Limited inventory, controlled launches, and a clear shift by developers toward fewer, larger residences rather than volume-led projects helped sustain pricing and drive value growth.

High-Income Buyers Fuel Sustained Demand

Demand in Bengaluru’s luxury segment continues to be driven by CXOs, startup founders, promoters, and entrepreneurs. Many of them already own multiple properties. Clearly, these buyers are upgrading to luxury homes for enhanced space, privacy, and lifestyle-led living.

A notable trend is the rising preference for large-format luxury apartments ranging between 5,000 and 7,000 sq. ft. Features such as expansive floor plates, low-density developments, private elevators, and premium amenities are key decision drivers. Moreover, proximity to central business districts and established residential hubs continues to play a critical role in influencing buyer preference.

Hebbal Leads Bengaluru’s Luxury Micro-Markets

Among luxury micro-markets, Hebbal emerged as the top performer, contributing 22% of Bengaluru’s total luxury housing sales value. Additionally, strong connectivity, proximity to business hubs, and an evolving premium residential ecosystem have made it a preferred destination for high-net-worth buyers.

A Market Showing Long-Term Momentum

The data points to sustained momentum rather than a short-term spike. The number of luxury units sold has grown at a compound annual rate of 47% since FY 2022–23, indicating robust and consistent demand. While luxury homes form a relatively small share of overall housing volumes, their contribution to total residential value is rising steadily.

Bengaluru Joins India’s Top Luxury Housing League

Crossing the ₹1,000-crore annual sales mark places Bengaluru alongside India’s established luxury housing markets. For developers, the trend signals scope for selective and well-positioned luxury expansion. For buyers and investors, it reinforces Bengaluru’s potential for long-term capital appreciation and its growing stature as a premium residential destination.

As the city’s wealth base expands and high-end supply remains disciplined, Bengaluru’s luxury housing market appears well-positioned for continued, sustainable growth.

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