Bengaluru’s Housing Market Sees 10% Sales Dip, Launch Surge in Q1 2025: JLL Report

Bengaluru’s residential real estate market recorded a mixed performance in the first quarter of 2025, with a decline in housing sales but a significant uptick in new project launches and average property prices. According to a recent report by real estate services firm JLL India, the city registered sales of 15,340 residential units between January and March 2025, a 10% drop from 16,995 units during the same period last year.

Despite this drop in sales volume, the city saw a substantial increase in the number of new units launched. The report noted that 20,484 housing units were introduced to the market in Q1 2025, marking a 62% rise from 12,616 units launched in the corresponding quarter of 2024. This suggests that developers are optimistic about future demand, even amid a momentary dip in sales figures.

Factors Driving Market Activity

Several structural and economic factors continue to support Bengaluru’s residential real estate momentum, especially on the supply side. JLL highlighted that the city’s robust IT and startup ecosystem, its expanding employment opportunities, and major infrastructure projects — notably the ongoing expansion of the Namma Metro and improved road connectivity to city outskirts — have played a crucial role in sustaining developer interest.

The report also revealed that nearly 30% of all housing sales in the first quarter came from projects that were launched during the same period. This trend indicates strong buyer confidence in newly launched properties, suggesting that consumers are willing to invest in under-construction projects, possibly to capitalise on better pricing and wider selection options.

Submarket Performance

On a submarket level, different regions within Bengaluru demonstrated distinct trends in launches and buyer interest. Bellary Road stood out in terms of new supply, accounting for more than one-third of the total launches in the quarter. Meanwhile, Whitefield continued to lead the market in terms of actual sales, contributing to 35% of the city’s overall residential transactions in Q1.

These trends point to a spatial diversification of demand and supply. While emerging corridors like Bellary Road are witnessing increased developer activity, established micro-markets like Whitefield remain top choices for buyers due to their infrastructure, connectivity, and concentration of IT companies.

Rise in Luxury Segment Sales

One of the standout findings from JLL’s Q1 2025 report is the sharp growth in Bengaluru’s luxury and premium housing segments. Apartments priced ₹1 crore and above contributed to approximately 61% of the total residential sales in the city during the quarter. This segment also posted a 31% year-on-year growth compared to Q1 2024.

Within this, the premium sub-segment — defined as units priced between ₹3 crore and ₹5 crore — witnessed the highest jump, with a remarkable 119% increase in sales year-on-year. This indicates a growing appetite for upscale housing among the city’s affluent and upper-middle-class buyers.

Commenting on this trend, Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, said that the surge in luxury home sales reflects increasing wealth among homebuyers, evolving lifestyle expectations, and a preference for larger and more premium living spaces.

Property Prices on the Rise

Bengaluru’s average residential property prices also registered an upward movement, growing by approximately 13% in Q1 2025 compared to the same period last year. This price growth is attributed to two key factors: the launch of high-end residential projects at premium price points, and rapid absorption of well-located, quality developments.

According to JLL, Whitefield led the city in year-on-year price growth with a 17% increase, followed by Hosur Road, which saw a 14% rise. Both submarkets benefit from metro expansion, improved infrastructure, and continued interest from IT professionals and investors alike.

While the year-on-year decline in sales may raise some concerns, the overall performance of Bengaluru’s housing market in Q1 2025 reflects a complex but resilient picture. The increase in project launches, strong uptake of luxury homes, and rising property prices all suggest that the market remains healthy and attractive to both end-users and investors.

As infrastructure developments progress and metro connectivity further enhances accessibility to peripheral regions, new micro-markets are likely to emerge as hotspots for both supply and demand. If macroeconomic conditions remain stable, Bengaluru’s residential market is well-positioned to regain sales momentum in the upcoming quarters.