Bengaluru Leads Nation in Demand for Premium Homes Priced Between ₹1–5 Crore

Bengaluru has emerged as the top city in India for premium and luxury housing demand, particularly for homes priced between ₹1 crore and ₹5 crore, according to a new report by Knight Frank India. The city recorded sales of 18,299 homes in this price range between January and June 2025, accounting for 24% of all such homes sold across the country.

This trend highlights a significant shift in homebuyer preferences post-Covid, with buyers aspiring for more spacious, amenity-rich homes, and developers responding by focusing on higher ticket-size segments. According to Knight Frank, building budget homes under ₹1 crore has become increasingly unviable due to rising input and land costs.

Following Bengaluru, NCR recorded 16,416 sales in the ₹1–5 crore segment (22%), while Mumbai saw 15,720 units sold (21%). Bengaluru also led in ultra-luxury transactions, selling 325 homes priced ₹5–10 crore and five homes in the ₹10–20 crore bracket during the same period.

“The residential market in H1 2025 reflected a nuanced shift where premium and luxury segments thrived while affordable housing segments saw moderation,” said Shishir Baijal, CMD, Knight Frank India. He added, “Nearly half of all home sales are now for properties priced above ₹1 crore—clearly reflecting rising aspirations and changing buyer priorities.”

Driven by high demand and premium product launches, average residential prices in Bengaluru jumped 14% year-on-year to ₹7,052 per sq. ft. Key growth corridors included Bannerghatta Road, Whitefield, Sarjapur Road, and Tumkur Road, bolstered by metro projects and infrastructure upgrades.

South Bengaluru emerged as the most active housing market in the city, accounting for 38% of all new launches, especially in Electronic City and Sarjapur Road, areas well-connected to IT hubs and upcoming metro lines like the Yellow Line on Hosur Road.

In response to this demand, developers launched 33,498 new housing units, marking a 31% YoY growth—one of the highest half-yearly supply surges in recent times.

Bengaluru’s transformation into India’s premium housing capital appears well underway.