Bengaluru home prices to rise by 10–12% as premium segment leads recovery

Whitefield and North Bengaluru emerge as key residential growth corridors.

Bengaluru’s residential market is expected to remain resilient in 2026, supported by premium housing demand, infrastructure upgrades and continued employment growth, according to a report by JLL. The consultancy projects residential property prices in the city to rise by 10–12 percent in 2026, driven by sustained demand for upscale homes, robust office sector expansion and rising land and construction costs.

JLL identified North Bengaluru, Sarjapur Road and Whitefield as key growth corridors, with developers increasingly focusing on upscale housing and integrated mixed-use developments in these micro-markets. Improved metro connectivity and infrastructure enhancements are expected to further bolster buyer interest in these areas.

In 2025, however, overall housing demand softened. JLL reported that residential demand declined by approximately 3 percent quarter-on-quarter and 12 percent year-on-year, as rising prices and job uncertainty within the IT sector weighed on buyer sentiment. Infrastructure bottlenecks in certain pockets and a pronounced shift toward larger, amenity-rich developments by established developers also reduced demand for affordable and smaller housing options.

Despite the broader slowdown, projects launched in the fourth quarter by reputed developers witnessed strong traction, accounting for more than 22 percent of quarterly sales. JLL noted that this performance underscores robust buyer confidence in newly launched developments, particularly those backed by established brands, even during periods of market weakness.

Supply activity remained active. New launches rose 7.6 percent quarter-on-quarter, taking total annual launches in 2025 to around 61,000 units. While the mid-income and affordable segments experienced slower absorption, premium and high-end housing continued to demonstrate strength. According to JLL, developers are increasingly pivoting toward premium projects to cater to affluent buyers seeking spacious, well-equipped homes.

Whitefield led unit launches in the fourth quarter of 2025, followed by Hosur Road and Bellary Road. Notable project launches included Lodha Elanza, Embassy Greenshore and Sowparnika Whispering Petals. Meanwhile, Sipani City Phase 1 in Whitefield recorded the highest launch volume by units during the quarter, reflecting continued developer confidence in the micro-market.

Pricing trends remained firm. JLL reported that residential property values in Bengaluru rose by 3–4 percent quarter-on-quarter in the fourth quarter of 2025, supported by the launch of higher-priced projects, escalating input costs—particularly land—and the pricing power of established developers commanding brand premiums.

The rental market also saw notable growth. According to JLL, rental rates increased by 3–4 percent quarter-on-quarter, driven by Bengaluru’s status as India’s leading technology hub, which continues to attract IT professionals. A shortage of affordable rental options, coupled with return-to-office mandates and improved metro connectivity, intensified demand across key residential clusters and pushed rents higher citywide.

Looking ahead, JLL expects Bengaluru’s housing market to maintain its resilience, underpinned by ongoing infrastructure development, employment expansion and sustained appetite for premium housing. While affordability pressures may rise as prices climb, the consultancy believes that strong end-user demand—particularly in the premium segment—will continue to shape the city’s residential growth trajectory in 2026.