Bengaluru’s luxury apartment market has achieved a significant milestone, surpassing the Rs. 1,000 crore (US$ 117.05 million) mark in FY25, for the first time ever. This surge reflects the growing demand for high-end residential properties, particularly those priced at Rs. 10 crore (US$ 1.17 million) and above. Notably, 42% of the total sales over the last four years were recorded in FY25, indicating a robust recovery in the city’s luxury real estate market.

Growth in Demand for Ultra-Premium Apartments

According to a report by India Sotheby’s International Realty and CRE Matrix, the demand for ultra-premium apartments has seen a substantial rise in recent years. The properties in demand typically range between 5,000 to 7,000 square feet, reflecting a growing preference for spacious, luxurious living spaces. The increase in sales is seen as a response to a greater focus on aspirational lifestyles and strategic asset allocation by the city's growing population of high-net-worth individuals (HNIs).

This trend has become more pronounced as Chief Experience Officers (CXOs), startup founders, and global Indians increasingly look for luxurious and comfortable living spaces that match their growing professional and personal aspirations. The market is no longer limited to just the traditional luxury locales, but is rapidly expanding to new areas, signaling a major shift in Bengaluru’s real estate landscape.

Key Areas Leading the Growth

Hebbal emerged as the dominant area, accounting for a remarkable 22% of the total luxury apartment sales in the city. Hebbal, known for its proximity to the Bengaluru International Airport and its strategic location in the northern part of the city, has become a hotspot for luxury real estate. Its growing popularity is driven by infrastructure developments, as well as the area’s appeal to affluent buyers who prefer a peaceful yet well-connected environment.

Other areas such as Domlur, Sudhamnagar, and Bomanhalli have also shown substantial growth in luxury apartment sales, reflecting the rise of new hotspots in Bengaluru’s luxury real estate market. These areas, traditionally not known for their luxury offerings, are now being transformed into sought-after addresses by evolving real estate trends.

The Emergence of New Micro-Markets

One of the significant trends highlighted by the report is the emergence of six new micro-markets in the luxury apartment sector. According to Mr. Abhishek Kiran Gupta, CEO of CRE Matrix, these micro-markets have evolved rapidly, driven by changes in demand patterns and urban development. The expansion of the city’s infrastructure and the increasing focus on luxurious, expansive homes has been a driving factor in the rise of these areas. The new micro-markets have provided more opportunities for both developers and buyers, leading to increased sales in non-traditional luxury areas.

Changing Buyer Profiles and Their Preferences

As the demand for luxury properties grows, the buyer profile has also shifted. Today, many of Bengaluru’s luxury homebuyers are CXOs, entrepreneurs, and global Indians, who prioritize lifestyle and comfort over just location and size. They are investing in ultra-premium properties as a means of securing an aspirational lifestyle, while also considering these homes as strategic assets for long-term wealth creation.

The growing influx of technology professionals and entrepreneurs into the city has played a pivotal role in driving the demand for high-end real estate, with a preference for properties that offer state-of-the-art amenities, security, and a luxurious living experience.

Infrastructure Development Key to Continued Growth

Despite the remarkable growth, Mr. Ashwin Chadha, CEO of India Sotheby’s International Realty, emphasized the importance of Bengaluru’s infrastructure continuing to evolve to support the expanding luxury sector. The increasing demand for luxury homes calls for sustained investment in infrastructure, particularly roads, public transportation, and commercial developments. These developments are expected to drive quality-driven price appreciation in the future, ensuring that Bengaluru remains a competitive market for high-end real estate.

Looking Ahead: Strong Future Outlook

The outlook for Bengaluru’s luxury apartment market remains positive, with steady growth expected in the coming years. As more high-net-worth individuals seek out aspirational living spaces, developers are expected to cater to the demand with increasingly sophisticated offerings. The rise of new luxury hotspots and micro-markets indicates a dynamic shift in the real estate sector, suggesting that Bengaluru is on its way to becoming one of the top destinations for luxury living in India.

Conclusion

Bengaluru’s luxury apartment market has achieved a major milestone, with annual sales surpassing Rs. 1,000 crore for the first time in FY25. This growth is indicative of a strong recovery in the luxury real estate sector, driven by increasing demand for spacious, ultra-premium properties. As the city continues to evolve and attract more high-net-worth individuals, the future of Bengaluru’s luxury housing market looks set to remain vibrant, offering opportunities for both buyers and investors.

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