This City Now Drives 16% Of India’s Housing Demand, And It’s Not Delhi Or Mumbai | Real Estate News

The demand for 3BHK apartments in Bengaluru has surged by 52%.

Even as property prices are on the rise across India, one city has outpaced all others in terms of both demand and sales. Bengaluru, the country’s IT capital, has not only maintained its position as a preferred residential hub but has also emerged as the single largest contributor to nationwide housing demand.

According to recent data, Bengaluru alone accounted for nearly 16% of the total property sales in India’s top seven cities during the second quarter of 2025. A total of 15,100 homes were sold in the city, a significant number that underscores the appetite of buyers despite soaring prices.

The southern metropolis, which had witnessed a prolonged slowdown in its real estate sector, is now showing clear signs of revival. Compared to the same quarter in 2024, Bengaluru’s property market has grown by 1% year-on-year, signaling renewed investor and buyer confidence.

Prices Rising, Supply Tightening

The surge in demand has naturally pushed up prices. The average property rate in Bengaluru now stands at Rs 8,720 per sq ft, making it one of the costliest real estate markets in the country. However, supply has not kept pace with demand. New launches have dipped sharply – only 15,350 new housing units were launched this year, marking a 26% quarter-on-quarter decline.

At present, Bengaluru has 58,900 unsold units, a number analysts say indicates stability rather than oversupply, given the pace of sales.

Rent and Property Rates Across Key Micro-Markets

The rise in demand is also reflected in rental values across prime locations:

1. Electronic City: A 2BHK apartment is now available at Rs 20,000 – Rs 30,000 per month, with property prices averaging Rs 6,850 per sq ft.
2. Whitefield: Known as a technology hub, this area has seen a sharp increase in rentals. A 2BHK fetches between Rs 29,500 and Rs 43,000 monthly. Property prices here climbed 3% in a single quarter, touching Rs 9,950 per sq ft.
3. Sarjapur Road: Rent for a 2BHK now ranges from Rs 31,000 to Rs 46,000, up by 2% from the previous quarter. Property prices too surged by 3%, crossing the Rs 10,800 per sq ft mark.
4. Thanisandra Main Road: Monthly rents stand between Rs 27,000 and Rs 41,000 for a 2BHK. Property prices rose 3% year-on-year to Rs 9,500 per sq ft.
5. Mysore Road: More affordable compared to other areas, rentals here are Rs 19,500 – Rs 26,000 per month, with prices averaging Rs 7,450 per sq ft.

Developers Bet Big on Premium Projects

Several major projects are shaping the city’s skyline. Akshay Nagar, with the largest number of ongoing projects, has launched 2,130 units, where property prices hover around Rs 11,500 per sq ft.

Other big-ticket launches include:

1. Godrej MSR City, Shettygiri: 1,961 units launched, starting at Rs 10,999 per sq ft.
2. Sattva Vasantha Sky, Devanahalli: 1,077 units priced at Rs 11,000 per sq ft.

Overall, Bengaluru witnessed 14,639 new unit launches in Q2 2025, a steep drop from 24,667 units in the same period last year.

A Shift in Homebuyer Preferences

The market is also witnessing a shift in buyer preferences. Demand for 3BHK apartments has surged by 52%, reflecting changing aspirations of urban families seeking larger homes in the post-pandemic era.

Experts believe Bengaluru’s real estate boom is being fueled by sustained IT sector growth, rising incomes, and the city’s reputation as a global technology hub. Despite higher costs, the appetite for both buying and renting remains strong, making the city the undisputed leader in India’s housing market for 2025.