The rapid growth is being driven by a combination of infrastructure expansion, proximity to major employment hubs, and relatively affordable entry prices compared with established residential locations.

Strong Price Momentum and Future Growth

Average residential prices in the Sarjapur–Attibele belt have risen from around ₹4,568 per sq. ft. in 2022 to approximately ₹7,800 per sq. ft. by the end of 2025. Market estimates suggest the upward trend will continue, with prices projected to reach about ₹9,730 per sq. ft. by 2028, representing a further 25% appreciation over the next three years.

The corridor’s growth reflects broader housing market momentum in Bengaluru. Between 2022 and 2025, the city saw nearly 2.49 lakh homes launched and about 2.41 lakh units sold, highlighting strong demand in India’s leading technology hub.

Strategic Location Between Tech and Industrial Hubs

One of the key reasons behind the corridor’s rapid rise is its strategic location along State Highway 35, offering connectivity to major employment clusters such as Electronic City, Whitefield, and the Outer Ring Road.

The stretch between Sarjapur Police Station and Attibele junction is increasingly being viewed as a self-sustaining residential micro-market.

Dr. Prashant Thakur, Executive Director and Head – Research & Advisory at ANAROCK Group, says the corridor benefits from its location between Bengaluru’s technology ecosystem and the manufacturing belt near Hosur.

“A key factor behind the corridor’s growing appeal is its placement between two strong economic zones — Bengaluru’s IT-ITeS hub and the manufacturing ecosystem around Hosur. Attibele and Bommasandra have evolved into important bases for manufacturing, logistics and warehousing, while tech parks in Electronic City and Sarjapur Road continue to attract global occupiers.”

Steady Supply Driven by New Residential Projects

The Sarjapur–Attibele corridor has also witnessed strong developer interest over the past few years. Between 2022 and 2025, the micro-market saw nearly 17,100 new residential units launched, with the highest annual supply of over 7,530 units recorded in 2022.

The area’s housing mix has evolved significantly over time. Initially dominated by plotted developments and villas, the market is now seeing an increasing number of apartment projects as demand grows from professionals working in nearby tech hubs.

Infrastructure Projects to Strengthen Connectivity

Major infrastructure developments are expected to further accelerate growth along the corridor.

Key upcoming projects include the Satellite Town Ring Road, the Peripheral Ring Road, and the 23-km Namma Metro extension towards Bommasandra, Attibele and Hosur under the Namma Metro.

These projects are expected to improve connectivity across Bengaluru’s southern and eastern regions while easing traffic congestion.

Another development expected to boost the corridor’s attractiveness is a proposed greenfield airport near Hosur, located approximately 20–30 km from Attibele. If implemented, the project could significantly enhance regional connectivity and stimulate further real estate activity.

Social Infrastructure Catching Up

Alongside transport infrastructure, social infrastructure in the corridor has also improved significantly. The area already hosts several schools, universities and healthcare facilities, while upcoming retail developments and malls are expected to address the current gap in large-format shopping and entertainment options near Attibele.

Emerging as Bengaluru’s Next Housing Frontier

As Bengaluru continues to expand outward, Sarjapur–Attibele Road is increasingly being viewed as the city’s next residential growth frontier. With strong price appreciation, improving connectivity and rising housing demand, the corridor is attracting both end-users and long-term investors.

According to industry experts, the combination of tech employment hubs, industrial growth and infrastructure upgrades could sustain demand and capital appreciation in the micro-market over the coming years.

Also Read: India’s Real Estate Market Shows Resilience in 2025 Despite Global Headwinds

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The report, From Aspiration to Reality: The Cost of Owning a 3BHK in India, highlights that while demand for spacious, amenity-rich homes has risen sharply—driven by evolving family structures, work-from-home adoption, and a preference for future-ready housing—rapid price escalation and a skewed supply mix are intensifying affordability stress.

Average 3BHK Now Costs ₹2.7 Crore Across Top Metros

According to the study, the average price of a new 3BHK across India’s top five metropolitan cities now stands at ₹2.7 crore. At an annual income of around ₹23 lakh, a buyer would need nearly 12 years of income to afford such a home, based on the price-to-income ratio (PIR) metric.

Strikingly, even the income threshold required to enter India’s top 1%, estimated at approximately ₹22 lakh per annum, aligns with a similar affordability horizon—underscoring the depth of stress in large-home ownership across urban India.

Supply Skewed Toward Premium, Affordable Options Shrink

The report notes a growing imbalance on the supply side. Just 11% of new housing supply currently falls within the affordable or income-aligned segment, while the remaining 89% is concentrated in markets where buyers face heightened EMI pressure.

Of this, 41% of supply lies in “income-stretched” markets, where affordability stress begins to intensify significantly. Nearly 48% of all 3BHK units launched in the past year fall within stressed, severely stressed, or crisis affordability categories.

City-Level Trends: Location Choice Becomes Critical

Affordability dynamics vary sharply across cities and even within micro-markets:

• Bengaluru emerges as the most balanced market, with income growth broadly keeping pace with price appreciation across corridors.
• NCR and the Mumbai Metropolitan Region (MMR) show pronounced corridor-level asymmetry, making micro-market selection a decisive factor for buyers.
• Hyderabad, despite being a high-growth market, has seen prices significantly outpace incomes, pushing most residential hubs into high-stress zones.
• Pune, popular among young professionals, is characterised by wealth-dominated city cores, forcing buyers to explore peripheral locations for affordable 3BHK options.

The report estimates that choosing the right micro-market within a city can help buyers save ₹30–60 lakh, as central and premium zones increasingly function as wealth-dominant or capital-parking markets, while emerging corridors offer relatively better income alignment.

Developers Focus on High-Margin Premium Segments

Data from the report indicate that higher-priced segments are also more profitable for developers. In stressed and capital-led markets, developer margins range between 45–50%, compared to 15–18% in affordable or income-aligned markets.

“This concentration of premium supply has coincided with a post-pandemic shift in buyer preferences toward larger, amenity-rich homes by reputed developers,” said Tanuj Shori, Founder & CEO, Square Yards. “At the same time, a surge in high-net-worth individuals in a favourable economic environment has pushed 3BHK affordability under significant stress.”

Methodology and Buyer Playbook

The analysis is based on 10,500 RERA-registered 3BHK units launched between 2024 and 2025 across 44 micro-markets in Bengaluru, Hyderabad, MMR, NCR (Noida, Gurugram, Greater Noida), and Pune.

Affordability is assessed using the price-to-income ratio (PIR), following an OECD-referenced methodology. Markets are classified into five affordability categories—Affordable, Moderate, Stressed, Severely Stressed, and Crisis—which the report reframes as Income-aligned, Income-stretched, Capital-led, Wealth-dominant, and Institutional & Ultra-luxury markets.

The report also provides a structured buyer playbook, offering guidance for first-time buyers, upgraders, and HNIs, helping different income cohorts navigate increasingly complex urban housing markets.

Also Read: Residential homes sold in MMR are likely to expand by 8-9% in FY2024 supported by continued end-user demand and healthy affordability: ICRA 

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According to JLL Research, total housing sales across India’s top seven cities fell 11% year-on-year to 270,323 units in 2025, yet the market simultaneously witnessed a decisive shift toward premium housing. Apartments priced above ₹1 crore recorded a 6% year-on-year growth in unit sales, increasing their share of the market from 53% in 2024 to 63% in 2025.

This sharp divergence between volumes and value highlights a structural transformation underway in India’s housing market—one increasingly driven by premiumisation rather than mass demand.

Premium Homes Gain as Mass Housing Loses Ground

The most striking trend of 2025 was the contraction of the mass housing segment. Homes priced below ₹1 crore saw unit sales decline by 30%, with their market share shrinking from 47% in 2024 to just 37% in 2025.

In absolute terms:

• 99,265 sub-₹1 crore homes were sold in 2025
  • 25,413 units below ₹50 lakh
  • 73,852 units in the ₹50 lakh–₹1 crore range

In contrast, the ₹1.5–3 crore segment emerged as the fastest-growing category, recording a 19% year-on-year increase and accounting for 27% of total sales—up sharply from 20% a year earlier.

Higher ticket sizes also translated into stronger value growth. Despite the drop in unit sales, total residential sales value rose by around 11% year-on-year to approximately ₹5.57 lakh crore, underlining buyers’ willingness to pay premiums for quality, location, and branded developments.

City-wise Performance: Chennai Stands Out, Big Markets Moderate

Chennai: The Clear Outperformer

Chennai emerged as the standout residential market of 2025, registering 31% year-on-year growth to 14,837 units sold, defying the national slowdown. The city also recorded an exceptional 86% year-on-year jump in Q4 2025 sales, driven by rising preference for apartments over independent homes and strong uptake in premium projects.

Bengaluru: Volumes Dip, Value Holds

Bengaluru remained India’s largest residential market by volumes with 61,025 units sold, despite a 12% year-on-year decline. Importantly, the city led price appreciation, with capital values rising 13% annually in Q4 2025, reflecting sustained demand for premium housing despite moderation in sales.

Mumbai: Resilient Demand Amid Correction

Mumbai recorded 56,086 unit sales, down 15% year-on-year, yet continued to attract buyers in higher price brackets. Premiumisation remained evident, supported by limited land availability, redevelopment-driven supply, and steady end-user demand.

Delhi NCR: Sharp Volume Correction

Delhi NCR saw one of the steepest corrections, with sales falling 22% year-on-year to 38,981 units. However, the region also witnessed 13% annual price growth, indicating that premium developments continued to find takers even as overall volumes softened.

Pune: Relative Stability

Pune showed relative resilience, with sales declining marginally by 2% to 51,911 units. Strong employment fundamentals and steady mid-to-premium demand helped cushion the impact of broader market moderation.

Hyderabad and Kolkata: Diverging Paths

Hyderabad recorded 33,288 units, down 6% year-on-year, reflecting supply overhangs in certain micro-markets.
Kolkata, though smaller in scale, saw sales drop 21% to 14,195 units, even as premium launches gained traction.

Developers Double Down on Premium Supply

Supply-side trends reinforced the premiumisation narrative. While overall residential launches declined 3% year-on-year to 293,079 units, premium housing launches grew 6%, as developers prioritised higher-margin projects amid rising construction costs.

• Chennai led new launches, recording 45% year-on-year growth
• Kolkata, Pune and Chennai posted double-digit supply growth
• Mumbai and Hyderabad saw notable pullbacks in new launches

New launches accounted for 23% of annual sales, signalling sustained buyer confidence despite market adjustments.

Prices Rise Across Cities Despite Volume Decline

Home prices continued their upward trajectory across all major markets in 2025:

• Chennai, Bengaluru, Delhi NCR: 13% annual price growth
• Kolkata: 12%
• Other cities recorded 6–10% appreciation

Elevated construction costs, controlled inventory, and sustained demand for Grade A projects kept prices firm, reinforcing the shift toward value-driven transactions.

Outlook: Premiumisation Here to Stay

JLL expects India’s housing market to remain structurally strong despite short-term volume adjustments. Recent repo rate cuts, improved credit access, and stable employment conditions are likely to support demand, particularly in premium and upper mid-income segments.

Large, listed developers are expected to gain further market share through brand strength, execution capabilities, and strategic diversification across price segments—cementing premium housing as the central growth engine of India’s residential real estate market.

Also Read: Which City Sold the highest number of Homes in 2021?

The post Fewer Homes Sold, More Money Spent: ₹1 Crore+ Apartments Drive India’s Housing Market in 2025 appeared first on Square Feat India.

Annual Price Surge of 12%

The report highlights a significant annual growth in housing prices, with an average increase of 12% year-on-year (YoY) across the eight major cities. Delhi NCR recorded the highest YoY growth, with prices surging by 30%, followed closely by Bengaluru.

Quarterly Price Increases: Delhi NCR and Bengaluru Lead

Delhi NCR witnessed the highest quarterly price rise at 16%, driven by substantial price hikes in micro-markets such as Dwarka Expressway and Greater Noida. Bengaluru followed with an 8% increase in average housing prices. Notably, Delhi NCR’s luxury segment saw a considerable boost, with 3-4 BHK configurations experiencing up to a 12% QoQ price increase.

Unsold Inventory Declines Amidst Robust Demand

The report also notes a decrease in unsold inventory across most cities, reflecting robust sales activity. Kolkata experienced the highest sequential decline in unsold inventory at 5%, with Pune, Ahmedabad, and Chennai also seeing reductions. Despite these positive trends, MMR reported a slight increase in unsold units due to a surge in new launches.

Pune and Ahmedabad See Notable Reductions in Unsold Units

Pune stood out with the most significant annual drop in unsold inventory, falling by 13%. Ahmedabad and Chennai also reported a decrease in unsold housing units, with annual reductions ranging from 6% to 8%. This reduction indicates a healthy absorption rate in these markets.

Continued Growth and Market Dynamics

Boman Irani, President of CREDAI National, attributed the steady growth to strong homebuyer sentiment and ongoing positive market conditions. He emphasized that the festive season and government infrastructure initiatives are expected to further impact housing prices and inventory levels positively.

Badal Yagnik, CEO of Colliers India, noted that despite rising prices, demand remains robust, supported by stable interest rates and recent budgetary measures. He anticipates that the upcoming festive season will invigorate the housing market with increased sales and new launches.

Micro-Market Insights: Delhi NCR and Bengaluru

In Delhi NCR, Dwarka Expressway and Greater Noida saw impressive quarterly price increases of 35% and 24%, respectively. Bengaluru’s Inner East and Periphery & Outer East micro-markets reported notable price rises, with Inner East experiencing a 25% increase.

Outlook and Future Projections

Vimal Nadar, Senior Director and Head of Research at Colliers India, highlighted the strong demand in luxury and ultra-luxury segments, particularly for spacious units. The recent changes in long-term capital gains tax are expected to boost investor and homeowner sentiment, further supporting market growth.

As India approaches the festive season, industry stakeholders will closely monitor new launches and housing stock, anticipating continued momentum in the residential real estate sector.

Also Read: CIDCO to Launch Housing Scheme for 902 Flats on Krishna Janmashtami

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