Bengaluru’s once-resilient housing sector witnessed a sharp deceleration in the second quarter of 2025, with home sales dipping 8% year-on-year. According to the latest Anarock report, around 15,100 units were sold in Q2, compared with 16,350 during the same period last year.
The slowdown comes amid broader affordability pressures and a cautious buyer sentiment. Developers, traditionally aggressive with launches, also held back significantly. Fresh supply in Q2 stood at 15,350 units, a steep 26% drop from the 20,850 units rolled out in the preceding quarter.
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Analysts suggest this pullback reflects a conscious recalibration by builders. Instead of flooding the market with new offerings, developers appear to be focusing on completing existing projects and aligning supply with actual demand.
Property values in Bengaluru remain firm yet
Interestingly, despite the muted sales, property values in Bengaluru remain firm. The city registered a 12% annual rise in prices, among the strongest nationwide. Industry experts attribute this to sustained end-user demand in select micro-markets and steady input costs.
However, challenges persist. Unsold stock has piled up to 58,900 units, marking a 30% year-on-year jump, the highest among India’s top cities. The inventory overhang—time required to clear existing supply at current sales velocity—has stretched to 12 months, up from 11 in the previous quarter.
With East Bengaluru seeing a sales dip and growth shifting towards North and South zones, the city’s housing market appears to be entering a cautious phase, waiting for policy or economic triggers to spark fresh momentum.