Bengaluru housing prices jump 24% in Q1 2026 amid strong demand: Report
New Delhi, May 27
Bengaluru recorded the highest year-on-year housing price growth among India's top eight cities in the first quarter of 2026, with average residential prices rising 24 per cent, according to a report released by PropTiger.
The report stated that Bengaluru emerged as the "standout performer" in Q1 2026 due to "the simultaneous achievement of peak sequential sales growth, supply-sales near parity, and the strongest YoY price appreciation nationally."
Average housing prices in Bengaluru increased 24 per cent year-on-year and 3 per cent quarter-on-quarter to Rs 9,785 per sq. ft. during Q1 2026, making it the second most expensive market after Mumbai Metropolitan Region (MMR), where average prices stood at Rs 15,120 per sq. ft.
The report noted that "as most cities cooled in Q1 2026, the average price growth of the city rose from 14 per cent in Q1 2025."
According to the report, "The GCC and startup employment engine continues to prove more durable than conventional IT hiring cycles, providing Bengaluru with a structurally differentiated demand base that is less susceptible to sector-specific disruption."
Across India's top eight cities -- Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, MMR, Pune and Delhi-NCR -- average housing prices increased between 3 per cent and 24 per cent year-on-year in Q1 2026. On a quarter-on-quarter basis, prices rose between 1 per cent and 9 per cent.
"Property prices across top eight cities sustained a broad-based upcycle in Q1 2026 registering positive year-on-year appreciation underscoring the depth and resilience of underlying demand," the report said.
The weighted average housing price across the eight cities crossed Rs 10,050 per sq. ft. for the first time during the quarter.
The report further said that developers continued to focus on "maintaining price integrity and project viability over volume-driven liquidation," reflecting a "broadly comfortable supply-demand equilibrium."
Housing sales across the top eight cities fell 2.2 per cent year-on-year to 95,973 units in Q1 2026, while supply declined marginally by 0.1 per cent to 93,065 units.
On a yearly basis, housing sales increased in Bengaluru by 33 per cent, Chennai by 43 per cent, Hyderabad by 25 per cent and Delhi-NCR by 11 per cent, while sales declined in MMR, Pune, Kolkata and Ahmedabad.
MMR remained the highest-selling market with 26,116 units sold, followed by Bengaluru with 15,603 units.
— ANI
Reader Comments
As a Bengalurean born and raised, this is bittersweet. The city's growth is undeniable, but where are the 'affordable' segments? The ₹9,785/sq ft average — that's for luxury projects mostly. Young couples like us are being pushed to far-flung areas like Hoskote and Anekal, where basic amenities are still catching up. Wake up, developers! Build for the people who actually work here, not just investors.
Finally, some good news for property owners! I bought a 2BHK in Electronic City in 2020 for ₹45 lakhs — now it's valued at almost ₹70 lakhs. The GCC and startup boom is real. But the report's mention of 'broadly comfortable supply-demand equilibrium' is misleading — look at the 33% sales jump in Bengaluru. Supply is not matching demand. The government needs to fast-track approvals for new projects.
MMR at ₹15,120/sq ft — and Bengaluru is already at ₹9,785. At this rate, we'll cross Mumbai in 5 years at 24% annual growth. But the irony? Mumbai has a coastline, proper transport, and a real city feel. Bengaluru has... potholes and BWSSB water cuts. 😅 No doubt demand is strong, but the city is choking. Every new project adds to the traffic nightmare. Sustainable growth, please!
Props to PropTiger for the data, but let's talk real numbers. My friend in Mumbai pays ₹18,000/sq ft for a decent location. Bengaluru at ₹9,785 is still 'cheaper', but the quality of life? I'd rather pay more and have a metro, 24/7 water, and less traffic. The report says 'GCC employment engine is durable' — true, but if the city becomes unlivable, even those techies will move to Pune or Hyderabad.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.