Bengaluru is the fourth-largest real estate market across the top seven cities in the country (based on area sold), with a share of 14-15% in the total annual area sold during FY2021-FY2025. The area sold for the top seven cities increased at a CAGR of 18% during FY2021–FY2025; the Bengaluru market also grew at a largely similar pace with a CAGR of 19% during the same period.  

Bengaluru recorded a robust sales performance during FY2021 and FY2024, driven by strong end-user demand and healthy affordability. The city reached a decadal peak with 102 msf of area sold in FY2024. However, on this elevated base, FY2025 saw a marginal 2% YoY decline to 99 msf, primarily due to a sharp 41% drop in the affordable segment (accounting 6% of sales), even as mid-income and luxury segments posted modest gains of around 3% each. ICRA expects the sustained end-user demand in the mid-income segment and the luxury segment (within this segment – primarily Rs. 1.5-3.5 crore ticket size) is likely to support sales in FY2026.

Exhibit: Trend in annual sales for top seven cities and Bengaluru (in msf)

Source: ICRA Research and Propequity; data excluding stalled projects