Buyers report that Bengaluru’s luxury housing market, previously considered immune to demand shifts, is beginning to soften. In light of growing white-collar job losses and economic uncertainty, several leading developers are now offering flexible payment options. These include 25:75 and upfront discounts, deals that were previously uncommon in the ₹2.5 crore-and-above range.
“Several developers are offering 25% upfront payment, the remaining 75% on possession. Were there similar kinds of offers 6 months ago as well? Why are they providing such enticing offers if ‘all is well?’ A Reddit user mentioned.
This is occurring when home sales in Bengaluru experienced an 8% reduction compared to the same time last year in Q2 2025. According to reports, it reduced to 15,100 units from 16,350 last year, even with a 12% increase in average property prices.
Developers Rethink Their Approaches Because of a Wary Attitude
Experts report that they are noticing some developers starting to fine-tune their offerings, not drastically, but adequately to serve a larger group of buyers. Some are transitioning to mid-premium segments to enhance home accessibility.
For instance, The Prestige Group, based in Bengaluru, is planning to shift its focus to mid-market housing in the ₹2 to ₹3 crore range to tap into the rising demand from salaried homebuyers seeking quality homes in FY25.
Nomaan Ellahi, the associate principal partner of Square Yards, mentions that this shift isn’t just a result of decreased demand. Rather, it is a reaction to how buyers are changing their behaviour. “Post-COVID, homebuyers, especially NRIs and HNIs, are looking for not just bigger homes, but better amenities. These are typically available only in projects priced ₹3 crore and above. However, in the last year or so, financial caution has increased, especially with worries of layoffs and tech sector stress.”
Beginning in early 2024, major worldwide firms such as Intel, Microsoft, and Tesla have reported large layoffs aimed at reducing costs and enhancing operational efficiency. Simultaneously, the fast rise of automation and artificial intelligence is changing the IT job market, creating a demand for specialised skills in new technologies. As this shift opens new job paths in high-tech industries, experts observe that it has resulted in a slowdown in recruitment for standard IT jobs.
Tata Consultancy Services (TCS) has recently shared its plans to reduce its workforce by 2% for the 2026 financial year, which equates to over 12,000 job cuts. Experts cautioned that this might signal the start of a larger change, especially in technology-focused housing centres such as Bengaluru.
Bengaluru’s Technology Corridors are Feeling the Strain
Experts have indicated that Whitefield, once a standout in the city’s luxury real estate scene, exemplifies this situation. “In some cases, Grade A developers are pricing homes ₹1,000 per sq ft above the market average,” stated Ellahi. “When inventory runs into the thousands, such pricing becomes difficult to sustain.
Last year, experts noted that multiple Grade A developers started projects in Whitefield and the southern IT corridor of Electronic City. “However, sales momentum in Whitefield was slow, likely due to pricing being on the higher side. That may be one reason why many developers are now expected to focus more on the mid-segment going forward. Still, the luxury segment remains important, offering developers both higher margins and a way to elevate their brand positioning,” Ellahi mentioned.
According to experts, prime spots like Indiranagar, Koramangala, and HSR Layout have shown ongoing demand for luxury properties. “Most developers launching projects in such areas opt for limited units, making the offerings more exclusive and premium, often priced in the ₹2–4 crore range. Beyond ₹4 crore, we’re seeing significant traction from HNIs, NRIs, and even buyers from other parts of Karnataka, including neighbouring states like Telangana,” Ellahi expresses.
The Mid-range Continues to be the Prime Area, Yet the Supply is Scarce
It is agreed by experts that the price range of ₹80 lakh to ₹1.5 crore is the most resilient. “This bracket is driven by salaried professionals with ₹10–15 lakh annual CTCs,” Ellahi mentioned. “The issue is that there isn’t enough quality supply in this segment, and it’s forcing some buyers to either wait or stretch their budgets into higher-risk territory.”
Luxury Continues to be Crucial for Branding, Driven by GCC Demand
Despite facing challenges, experts indicate that developers are not likely to abandon the luxury segment completely. They noted that luxury contributes to brand visibility and entices distinguished buyers.
“Moreover, demand from Global Capability Centres (GCCs), which are steadily expanding their footprint in Bengaluru, is offering a cushion against declining IT-led demand.”
He remarked that despite the slowdown in some market segments due to IT job insecurity, GCCs are committed to real estate for the long term. Their requirement for housing is keeping a consistent level of demand in significant luxury corridors.
Read more through the links below to uncover the key trends and market leaders driving this growth:
Hindustan Times: http://bit.ly/4mENwvD
Published Date: 2 Aug, 2025
