Synopsis: This city’s residential real estate market continues to make headlines in Q2 2025 after seeing strong performance in its housing sales It is also underpinned by growth in IT, infrastructure developments, upgraded lifestyle levels, GCC hubs etc. These hot zones in the city will continue to stand out this quarter in terms of capital appreciation, rental stability, and investment opportunity.
In Q2 2025, Bengaluru saw around 15,100 homes being sold, making up 16% of the total housing demand across the top seven Indian cities. The city’s real estate market showed steady momentum, with sales inching up by 1% compared to the previous quarter.
Performance of Bengaluru’s Residential Real Estate Key Micro Markets
- Launches: 15,350 units, 26% decrease quarter-over-quarter, indicative of a strategy to soak existing supply.
- Sales: 15,100 units, a quarterly increase of 1% clearly evidencing consistent end-user and investor commitment.
- Available Supply: 58,900 units unchanged quarter-over-quarter which indicates a stable market once more.
- Average Quoted Price: ₹8,720/sf (base selling price) confirming the premiumization trend across the region.
Micro-Market Performance at a Glance
1. Electronic City
- Rental values: ₹20,000 – ₹30,000/month of a 2 BHK configuration; without any increase from IQ to Q2 2025 – cementing its position as a rental hot spot.
- Capital values: ₹6,850/sf, which is a 1% increase from the prior quarter.
- Outlook: Short-term of expected stable growth. This should be of interest to IT employees in search of affordable vs transit noise accommodation.
2. Whitefield
- Rental Values: ₹29,500–₹43,000/month, up 1% in Q2, indicating a continuing demand for rental accommodation from technology professionals and Non-Residential Indians (NRIs).
- Capital Values: ₹9,950/sf, showing a significant quarter-on-quarter growth of 3%.
- Short-term Outlook: Strong, as the increase in infrastructure and metro connectivity, together with improving social amenities, continues to drive capital and rental value appreciation.
3. Sarjapur Road
- Rental Values: ₹31,000–₹46,000/month, the highest increase of all major micro-markets at 2% quarter on quarter.
- Capital Values: ₹10,800/sf with a 3% increase over Q2 represent strong buyer interest and activity, with many new launches.
- Short-term Outlook: Strong, as large projects and township developments continue to prompt both investors and families to explore Sarjapur Road.
Also read: Top 5 Indian States That Recorded the Highest Digital Transactions in August 2025
4. Thanisandra Main Road
- Rental Values: ₹27,000–₹41,000/month, with a 1% total increase in the last quarter.
- Capital Values: ₹9,500/sf, with a quarterly increase of 3%.
- Short-term Outlook: Positive; continued demand for properties for ownership and investment by owners and tenants is expected due to the continued focus on infrastructure upgrades, proximity to many business parks, and new schools, and social amenities.
5. Mysore Road
- Rental Values: ₹19,500–₹26,000/month, a stable increase of 1% from the previous quarter.
- Capital Values: ₹7,450/sf, with a 1% increase in capital values in Q2.
- Short-term Outlook: Positive; there is growing demand for both rental and end-user demand as affordability improves, and metro continues to improve connectivity.
Major Project Launches:
- Prestige Southern Star (Akshaya Nagar), 2,130 Units, quote ₹11,500/sf.
- Godrej MSR City Barca (Shetiggere), 1,961 Units, quote ₹10,999/sf.
- Sattva Vasanta Skye (Devanahalli), 1,077 Units, quote ₹11,000/sf.
Insight: These larger launches demonstrate developer confidence in these growth corridors, especially in the south and northern Bengaluru areas.
Also read: Top 8 Indian Cities for NRIs to Invest in Real Estate 2025
What’s Fueling Market Growth?
- Strong Demand: Although there has been a decrease in new launches, sales continue to be robust as buyers are racing to secure pricing in light of rising costs.
- Rental Stability: Rents are rising on a consistent basis, especially in tech-centric corridors, which is friendly for investors.
- Capital Appreciation: Important micro-markets are achieving 1–3% price gains on a quarterly basis; price gains exceeding inflation.
- Infrastructure Development: There are ongoing metro rail extensions, with new roads and improved social amenities in the suburbs making micro-markets more attractive.
- Balanced Supply: Inventory remains sky high; hence no oversupply and price stabilization.
Outlook on Residential Micro-Market
- All these micro-markets show stable to increasing short term growth based on the strength of IT, infrastructure, and lifestyle improvements.
- Investors can enjoy not only capital appreciation, but have to become accustomed to rising and increased rental yields.
- The 2025 Buyer values location, ease of commute, amenities, and future appreciation, more than affordability alone.
Bengaluru, India’s tech hub, saw 14,639 new housing units launched in Q2 2025, down from 24,667 in Q1, with the Southeast and Northeast corridors driving 13,572 sales. 3 BHK units accounted for 52% of demand. While inventory overhang has risen, it remains within healthy levels.
Conclusion
Again, looking at 2025 Q2 we can conclude that Bengaluru is emerging as India’s most investment-friendly city for residential real estate; led by Whitefield, Sarjapur Road, Thanisandra Main Road, Electronic City, and Mysore Road. These micro-markets bring together the ideal elements for growth, stability, and potential for the future; suitable for tech professionals, families, and smart investors. As the city moves forward while the infrastructure and job growth acceleration continues, Bengaluru is uniquely positioned to deliver value in residential markets thoroughly in 2025 and beyond.
Written By Rachna Rajput
tradebrains.in (Article Sourced Website)
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