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Bengaluru Leads Demand for Premium Homes Priced Between Rs 1-5 Crore

4th July 2025

4 Min Read

Bengaluru Leads

Bengaluru Leads India’s Premium Housing Boom, Tops ₹1–5 Cr Segment

Aspirations Rise as Bengaluru Dominates Premium Home Sales

Bengaluru has emerged as India’s most sought-after market for premium and luxury homes priced between ₹1 crore and ₹5 crore, according to Knight Frank India. In the first half of 2025, the city recorded sales of 18,299 homes in this segment, accounting for a remarkable 24% of the 75,042 units sold nationwide. This trend signals a post-pandemic shift in homebuyer aspirations and marks a turning point for developers, who now find it less viable to build smaller homes priced below ₹1 crore.

Changing Market Dynamics and Buyer Preferences

The surge in demand for premium homes reflects a growing desire among Bengaluru’s homebuyers for larger, more luxurious living spaces. Knight Frank India notes that the city’s dominance in this segment is a clear indicator of rising affluence and shifting priorities in the post-Covid era.

National Rankings: NCR and Mumbai Follow

  • NCR ranks second, with 16,416 units sold in the ₹1–5 crore range, accounting for 22% of total sales.
  • Mumbai follows with 15,720 units, representing 21% of the segment’s nationwide sales.
  • In the ultra-luxury bracket, Bengaluru saw sales of 325 homes priced between ₹5 crore and ₹10 crore, and five homes in the ₹10 crore to ₹20 crore range during the January–June 2025 period.

Outlook: A New Era for Bengaluru’s Real Estate

As premium home sales soar, Bengaluru is setting a new benchmark for India’s residential market. The city’s success story highlights a broader trend: rising aspirations, evolving buyer preferences, and a shift toward larger, high-value homes—reshaping the landscape for developers and homebuyers alike.

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