Bengaluru, India’s technology and innovation capital, has reached a new pinnacle in its luxury housing segment. For the first time in a fiscal year, the city recorded sales worth ₹1,000 crore (US$ 118.20 million) for homes priced at ₹10 crore (US$ 11,82,033) and above, according to a comprehensive joint report by India Sotheby’s International Realty (ISIR) and CREMatrix. This reflects a massive 59% year-on-year increase compared to the previous fiscal year.

A total of 78 luxury homes were sold in the ₹10 crore+ bracket during FY25, compared to 51 units in FY24, highlighting robust momentum and growing appetite among high net-worth individuals (HNIs), CXOs, startup founders, and globally mobile Indians.

Hebbal Leads the Luxury Boom

Among all localities in Bengaluru, Hebbal emerged as the most preferred destination for ultra-premium homebuyers. The area alone accounted for 22% of the total sales value and 19% of the units sold in this bracket. Improved infrastructure, connectivity, and proximity to commercial centers have been key in propelling Hebbal’s status as a luxury hotspot.

According to Ashwin Chadha, CEO of ISIR, “Bengaluru’s luxury housing market has entered a new league. Buyers today are not only purchasing homes but investing in a certain lifestyle.” The perception shift from owning a house to making a strategic luxury investment is clear in these transactions.

Micro-Markets Like Varthur & Gunjur See Uptick

Other areas such as Varthur and Gunjur are fast catching up, largely because of their connectivity to IT hubs and planned infrastructure developments. Umesh Gowda, Chairman of the Sanjeevini Group, remarked that “the upcoming metro rail expansions and smoother road networks have turned these areas into attractive zones for HNIs.”

Mr. Darshan Govindaraju of the Vaishnavi Group noted that many of today’s luxury buyers are young professionals, especially those flush with ESOPs, who view these properties not just as a place to live but as capital-gain-generating assets.

Profile of Today’s Luxury Home Buyer

The Bengaluru luxury home buyer is no longer confined to traditional business families. According to the report, a new-age demographic comprising of startup entrepreneurs, tech professionals, returning NRIs, and first-time luxury buyers is leading the charge. These individuals are:

• Seeking lifestyle upgrades.

• Investing in homes with state-of-the-art amenities.

• Looking at real estate as a tangible, appreciating asset.

Ms. Anjana Sastri, Director at Sterling Developers, shared that high rental yields, the growth of the IT sector, and evolving lifestyle aspirations are some of the top reasons why buyers are now investing in high-value homes.

Infrastructure as the Biggest Growth Enabler

The expansion of the Namma Metro network, flyovers, highway improvements, and new township projects have significantly enhanced connectivity in the city. These developments are helping previously underdeveloped regions catch up quickly with established neighborhoods.

Madhusudhan G, CMD of the Sumadhura Group, emphasized that infrastructure progress is one of the strongest growth drivers in the luxury housing segment. With upcoming projects like Peripheral Ring Road and continued growth in Whitefield and Outer Ring Road, investors are bullish on long-term capital appreciation.

Real Estate Market Dynamics Changing

This rapid growth is also reflective of a larger shift in real estate preferences:

• A decade ago, luxury properties were niche and limited to a few micro-markets.

• Today, developers are actively launching premium projects across diverse locations, reflecting changing consumer demand.

• Developer confidence is also increasing, with luxury launches becoming more frequent and better marketed.

The role of technology, virtual home tours, and digitised property documentation has further simplified the buying experience, especially for NRI buyers.

Impact of Lifestyle Choices

Another interesting trend is the integration of lifestyle experiences into residential spaces. Homes now come with features like:

• Private elevators

• Home automation systems

• Spa & wellness centers

• Clubhouses, golf simulators, and rooftop lounges

This reflects a wider cultural shift where homebuyers are not just investing in real estate but also in personalised, high-end living experiences.

Investment-led Purchases on the Rise

Not all buyers are looking to occupy these homes. A significant share is purchasing as a long-term investment. High-value real estate is perceived as inflation-resistant, stable, and prestigious, especially in volatile financial market conditions.

Properties in well-connected localities with brand value, like those from prestigious developers, are being picked up for rental income as well as portfolio diversification.

Looking Ahead: Future Outlook for FY26 and Beyond

With an expected CAGR of over 15% in Bengaluru’s luxury housing segment, industry experts forecast that the city could surpass ₹1,300 crore in sales of ₹10 crore+ homes in FY26 if current momentum continues.

Factors that will fuel this growth include:

• Continued urban infrastructure investment

• Bengaluru’s positioning as a global tech capital

• Increasing return of NRIs seeking secure investments

• Rise in co-primary homes (a secondary home that is used frequently)

• Government ease of doing business initiatives

In conclusion, Bengaluru’s luxury real estate boom is more than just numbers. It reflects the city’s evolution into a global metropolis where wealth creation, aspirational living, and strategic real estate investments are becoming mainstream. With its mature buyer base, developer sophistication, and growing global reputation, Bengaluru is set to remain one of the most lucrative luxury real estate markets in India for years to come.

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