Bengaluru Homebuyers Face Affordability Challenges as Mid-End Housing Launches Decline: NoBroker Report

Bengaluru’s housing market is witnessing a shift, with a decline in mid-end housing launches, making homeownership more challenging for budget-conscious buyers. A recent report by NoBroker highlights that new launches in the mid-end segment, priced between ₹40 lakh and ₹80 lakh, dropped by 29% in 2024. This trend is pushing many potential homebuyers towards suburban areas or the resale market due to a lack of affordable options.

Decline in Mid-End Housing Supply

In 2023, Bengaluru recorded 15,179 new launches in the mid-end segment, representing 29% of total launches. However, in 2024, the number fell to 14,876 units, reducing the segment’s share to 22% of total new launches. Despite this decline, demand for homes in this category remains strong. According to NoBroker, 38-40% of Bengaluru’s homebuyers are actively looking for properties in this price range.

Saurabh Garg, CEO of NoBroker, noted that the gap between demand and supply is creating affordability challenges for homebuyers. As developers prioritize high-margin luxury projects, buyers seeking mid-range homes are left with fewer choices, forcing many to explore alternative options.

Impact on Buyers and Market Trends

With fewer mid-range housing options available, many buyers are turning to the resale market or suburban areas where prices are more manageable. As a result, the supply of luxury resale units has doubled, driven by strong demand for upscale properties and sellers capitalizing on better returns on investment.

The report also points out that properties within gated communities are appreciating at a faster rate than those in standalone buildings. This indicates a preference for integrated residential developments that offer security, shared amenities, and better infrastructure.

Growth in the Luxury Housing Segment

While mid-end housing supply has declined, the luxury housing segment—properties priced above ₹1.5 crore—has expanded significantly. In 2023, luxury housing accounted for 29% of total launches, but in 2024, this share increased to 34%.

Data from NoBroker shows that Bengaluru saw 23,073 new luxury units launched in 2024, compared to 15,071 units in 2023. Developers are shifting their focus toward high-end properties due to rising land costs, increasing construction expenses, and better profit margins. These projects cater to affluent buyers looking for spacious homes and premium amenities.

Emerging Real Estate Hubs in Bengaluru

Certain areas of Bengaluru have seen significant housing development activity in recent years.

North Bengaluru: Fastest-Growing Real Estate Market

North Bengaluru has emerged as a key real estate hub, with a sharp increase in housing project launches. In 2023, the region accounted for 23% of new housing launches, which rose to 33% in 2024.

Several factors have contributed to this growth:

• Proximity to Kempegowda International Airport
• Development of major tech parks and industrial clusters
• Expanding road and metro connectivity

Areas such as Devanahalli, Yelahanka, KIADB Aerospace Park, Hennur Road, and Thanisandra have attracted both homebuyers and investors due to their strategic location and future infrastructure plans.

East Bengaluru: A Steady Growth Trend

East Bengaluru, known for its IT and startup ecosystem, continues to see consistent new project launches. The region remains a high-demand area due to the presence of major IT parks, multinational firms, and a well-developed commercial sector.

Unlike North Bengaluru, which is still expanding, East Bengaluru has already established itself as a preferred location for working professionals, ensuring steady demand for residential projects.

Bengaluru’s housing market is evolving, with developers focusing more on luxury and high-end properties while the supply of mid-range homes declines. The affordability challenge is pushing many homebuyers to explore alternative solutions such as resale properties, suburban developments, and gated communities.

The city’s real estate trends indicate a growing divide between premium housing and budget-friendly options. If developers continue prioritizing luxury projects, mid-income homebuyers may face increasing difficulties in securing affordable housing within the city limits. However, suburban growth and infrastructure expansion could provide some relief by creating new residential hubs with improved connectivity.