Karnataka continues to witness a transformation in its urban housing market, with Bengaluru leading the country in demand for premium residential properties priced between one crore and five crore rupees. The city recorded the highest number of home sales in this price range across India, underscoring a shift in buyer sentiment toward premium housing. According to data released by Knight Frank India for the first half of 2025, Bengaluru accounted for twenty four percent of all homes sold in the one crore to five crore rupee segment. The city saw 18299 such units sold between January and June, out of a national total of 75042 homes. This significant demand reflects changing buyer aspirations and the growing preference for amenity-rich housing solutions.
The National Capital Region ranked second with 16416 sales in the same price bracket, followed closely by Mumbai at 15720 units. Together, these three cities contributed over two thirds of the total national sales for homes priced above one crore rupees, further emphasizing the concentration of premium residential demand in major metropolitan areas. In Bengaluru, the growth is not limited to the mid-premium segment alone. The city also saw 325 houses sold in the five crore to ten crore rupee range, along with five transactions in the ten crore to twenty crore rupee category. This upward trend suggests that buyers are increasingly willing to invest in larger and more luxurious properties, driven by factors such as post pandemic lifestyle changes, a rise in disposable incomes, and the shift toward hybrid work models that demand more spacious homes.
Knight Frank India highlighted the broader trend of premiumisation in the Indian housing market. Nearly half of all residential transactions in the first six months of the year were for properties priced above one crore rupees. This totaled 83433 units across the top markets, a significant leap that indicates a preference for larger homes with enhanced amenities and better location advantages. Senior Officials of Knight Frank India, stated that the residential market in the first half of 2025 displayed a clear shift in consumer priorities. He noted that premium and luxury segments continued to perform strongly, while lower value segments showed signs of moderation. Baijal emphasized that the high share of premium housing in total sales reflects a growing appetite for long term real estate investment and lifestyle upgrades.
Bengaluru’s average residential prices have also seen a sharp increase. Prices rose by fourteen percent year on year, reaching an average of seven thousand and fifty two rupees per square foot. This price growth is attributed to sustained demand and a strategic focus by developers on launching premium projects. Areas such as Bannerghatta Road, Whitefield, Sarjapur Road, and Tumkur Road have witnessed some of the highest price appreciations, supported by expanding metro connectivity and strong economic activity. South Bengaluru continues to be the city’s most dynamic real estate zone. It accounted for thirty eight percent of all new residential launches during the review period. Localities like Electronic City and Sarjapur Road are driving this momentum, benefiting from proximity to major IT corridors, solid physical infrastructure, and upcoming metro projects like the Yellow Line along Hosur Road.
The shift in consumer preference is also influencing developer strategy. Builders are increasingly targeting mid and high ticket size segments rather than the traditional budget category. This change is seen in the nature of new project launches which now include high rise apartments, gated communities with advanced amenities, and integrated townships offering work and leisure options. The supply response from developers has kept pace with this rising demand. Bengaluru recorded 33498 new housing units launched in the first half of 2025, representing a thirty one percent year on year increase. This was among the highest half yearly launch volumes in recent years and reflects the confidence of developers in the long term growth potential of the premium housing segment.
The current data indicates that the Bengaluru housing market is maturing into a more sophisticated and demand driven ecosystem. The increase in premium housing demand is also viewed as a response to rising land costs and the difficulty in executing viable projects in the sub one crore rupee segment. For developers, it is becoming economically unfeasible to create smaller homes in the city’s core areas given the high input costs and consumer expectations. Going forward, experts anticipate that the premium housing trend will continue in Bengaluru and other major cities. Buyers are prioritizing quality of life, spaciousness, and access to services, which are better delivered through premium residential projects. The combination of job creation in tech and services sectors, infrastructure upgrades, and changing consumer behavior is expected to sustain this shift in housing preferences.
As Bengaluru leads the way, the real estate market in Karnataka is poised for continued evolution, with premiumisation becoming a defining characteristic of the post pandemic housing landscape.
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Karnataka real estate sees surge in demand for houses priced between one crore and five crore rupees
