Bengaluru Housing Market: ICRA Forecasts 3-5% Growth in FY26, Driven by Mid-Income and Luxury Segments

Overview

Bengaluru's residential property market is projected to grow by 3-5% in Fiscal Year 2026, according to ICRA. This growth is expected to be fueled by sustained demand in the mid-income and luxury housing segments. While affordable housing sales declined in FY25, the mid-income and luxury categories saw positive growth, indicating a shift in buyer preferences towards premium properties. New launches are also anticipated to increase, supported by improving inventory turnover and the progress of the e-khata process.