Record housing supply boosts Bengaluru residential market

Residential supply hit a record 27,000 units in Q1.

Bengaluru's residential market continued to outperform other major Indian cities in Q1 2026, with more than 18,000 homes sold, supported by the city's strong technology sector, expanding metro network and sustained demand for larger, higher-quality homes, according to JLL.

JLL reported that housing sales increased 19% quarter-on-quarter, although growth lagged the pace of new launches, pointing to emerging pricing pressures and more cautious buyer sentiment. Demand remained concentrated in locations close to metro-connected technology hubs.

New residential supply reached a record 27,000 units during the quarter, nearly doubling from the previous quarter and reinforcing Bengaluru's position as India's leading residential market. Developers focused heavily on premium and high-end projects, with homes priced above INR1.5 crore accounting for 69% of all launches.

Whitefield led new supply with nearly 10,000 units launched, followed by Bellary Road and Hosur Road. According to JLL, rising land values across IT corridors and metro-linked precincts continue to push up housing prices, while buyers increasingly seek larger homes with enhanced amenities.

Average home prices and rents increased by 3.2% and 2.7% quarter-on-quarter, respectively. JLL attributed strong rental demand in Whitefield, Sarjapur Road and North Bengaluru to continued job creation in the IT and startup sectors and ongoing migration into the city.

Looking ahead, JLL expects Bengaluru's residential market to remain resilient, supported by strong economic and office market fundamentals. However, the consultancy noted that uncertainty in the technology sector could weigh on market sentiment. North Bengaluru, Sarjapur Road and Whitefield are expected to remain key growth corridors, while annual price growth is likely to stay relatively moderate through 2026.