Luxury Housing Surge: Bengaluru Tops India’s ₹1–5 Crore Real Estate Market

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Bengaluru is leading India’s premium-residential boom, emerging as the nation’s top city in the ₹1–5 crore price segment—a reflection of escalating demand for upscale homes in a rapidly evolving urban economy.

Data from Knight Frank and Deccan Herald reveals Bengaluru recorded 18,299 sales in the ₹1–5 crore bracket during H1 2025, the highest among major cities. This growth dovetails with a 73% quarter-on-quarter rise in luxury launches, particularly across North, East, and South Bengaluru clusters like Hebbal, Yelahanka, Sarjapur, and Hosur Road.

The luxury segment now accounts for 61% of residential sales citywide, driving a 13% increase in capital values during Q1 2025. Average property prices are now above ₹7,000–9,000 per sq ft, reflecting investor confidence and lifestyle-driven buying trends.

Why Bengaluru?

  • Tech-fueled Aspirations: Home to over 2 million IT professionals and 40% of India’s Global Capability Centers, the city’s economic profile supports premium housing demand.

  • Infrastructure Boost: From metro expansion to road upgrades, improved connectivity is fueling buyer interest in peripheral luxury zones.

  • Developer Momentum: Major builders like Sobha, Brigade, Birla, and Assetz are launching projects with high-end amenities, creating a vibrant Premium supply pipeline.

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