Sign in Subscribe
Housing

Bengaluru's Real Estate Market Shifts Towards Mid-Premium Segment

Strategic Insights

— 2 min read

Bengaluru's real estate market is witnessing a significant shift towards the mid-premium segment, with homebuyers showing a strong preference for practical, premium mid-segment homes over ultra-luxury offerings. Despite a national trend towards luxury housing, Bengaluru's market is driven by consumer demand, with NRIs and domestic buyers driving growth in the mid and upper-mid segments. Property prices in the city have surged by 40-60% over the past two years, but a more moderate 20% increase this year suggests a stabilising market.

Key Takeaways:

  • The Bengaluru real estate market is shifting towards the mid-premium segment, with growing demand for properties priced between Rs.1 crore and Rs.4 crore.
  • Homebuyers are showing a strong preference for practical, premium mid-segment homes over ultra-luxury offerings.
  • The company plans to launch 9 million sq ft of mid-premium housing and select luxury projects in key growth corridors such as Mysuru Road and Old Madras Road.
  • Property prices in the city have surged by 40-60% over the past two years, but a more moderate 20% increase this year suggests a stabilising market.
  • Sattva Group plans to develop premium to luxury residential projects, sprawling 9 million sq ft, with ticket sizes between 1-4 crore in western parts of the city.
  • The company plans to clock Rs.6,000 crore in home sales for FY26, up from Rs.3,500 crore in the previous fiscal.
  • Sattva Group has already launched a residential project near Kempegowda International Airport and another large-scale development in North Bengaluru spanning 5.9 million sq ft and comprising 3,900 flats.
  • The company is targeting prime micro-markets like Kokapet and HITEC City in Hyderabad, driven by robust infrastructure and strong demand from NRIs and domestic buyers.

Statistics:

  • Property prices in Bengaluru have surged by 40-60% over the past two years.
  • The increase in property prices this year is around 20-25%.
  • Sattva Group plans to launch 9 million sq ft of mid-premium housing and select luxury projects in key growth corridors.
  • The company plans to clock Rs.6,000 crore in home sales for FY26, up from Rs.3,500 crore in the previous fiscal.
  • Sattva Group has already launched a residential project near Kempegowda International Airport, spanning 5.9 million sq ft and comprising 3,900 flats.
  • The company is targeting 11 million sq ft of residential space by the end of the financial year across key cities including Bengaluru, Hyderabad, and Goa.

Sources:

  • "Bengaluru-based Sattva Group to invest Rs.12,000-14,000 crore in three years, mulls IPO for Simpliwork" (Hindustan Times)
  • "Sattva Group, Blackstone sponsored REIT raises Rs.1,400 cr in pre-IPO round" (Hindustan Times)

Read more