Bengaluru's real estate market is experiencing a significant shift, leading to the question: Is ₹1 Crore the new base price for a mid-sized home in the city? Recent trends suggest that this might be the case, pushing budget-conscious homebuyers to the outskirts.
Rising Property Prices and Shifting Affordability
Bengaluru's residential property prices have surged, with a nearly 12% year-on-year increase in 2025, averaging ₹7,388 per sq ft. This surge has made it difficult for many prospective buyers to find homes under ₹1 crore, with 42% of those seeking such properties now priced out of the market. This affordability crunch is occurring despite a 13% year-on-year increase in demand for budget housing, indicating a significant mismatch between supply and demand.
The ₹1 Crore Benchmark
What was once considered a luxury benchmark, ₹1 crore is now increasingly becoming the baseline for a mid-sized home in Bengaluru. Compact 2BHK apartments in prime locations like Whitefield and Sarjapur Road are now priced well above this figure. As one property consultant noted, "Rs 1 crore used to mean luxury. Today, it's the entry ticket for convenience". Buyers are increasingly prioritizing commute, connectivity, and civic amenities, and are willing to pay a premium for these factors.
Factors Driving the Price Surge
Several factors contribute to the increasing cost of properties in Bengaluru. The city's booming IT sector and the influx of professionals have led to high demand for housing. Limited land availability and significant infrastructure development, such as the metro rail network, have further driven up prices in desirable areas. Investor interest, drawn by the city's strong economic growth and potential returns, also plays a role.
Peripheral Areas as the New Frontier
As property prices in central locations rise, homebuyers are increasingly pushed towards Bengaluru's peripheral areas. Areas near upcoming metro lines and the Peripheral Ring Road are seeing increased demand due to their relatively lower prices. While these locations may require longer commutes, the prospect of owning a home is proving to be a strong motivator. New launches offering 2BHK units around ₹1 crore are now typically located 15–20 kilometers from key economic hubs.
Affordable Options Still Exist
Despite the overall price surge, affordable housing options can still be found in certain localities. Electronic City, Kengeri, Vidyaranyapura, and JP Nagar are among the areas that still offer properties under ₹8,000 per sq ft, albeit with potential trade-offs in commute time and infrastructure. Additionally, areas like Electronic City and Kammasandra offer 2BHK apartments in the ₹60-65 lakh range and 3BHK apartments around ₹75 lakh. Devanahalli and its outskirts are also emerging as viable budget options, with 2-3 BHK apartments available under ₹75 lakh in new and early-stage projects.
Trends to Watch in 2026
Looking ahead to 2026, several trends are expected to shape Bengaluru's real estate market. North Bangalore is predicted to lead the growth curve, driven by infrastructure development and connectivity. There's also a rising demand for plotted developments and villa communities, integrated townships, and sustainable, smart living options. Experts predict that property prices will continue to rise, albeit at a moderated pace, with the mid-income and luxury segments driving growth.
Conclusion
While ₹1 crore may not be the absolute base price for all mid-sized homes in Bengaluru, it's becoming an increasingly common entry point, particularly for those seeking convenience and connectivity in established areas. As the city continues to grow, homebuyers will need to carefully consider their priorities and explore options in both central and peripheral locations to find a home that fits their budget and lifestyle.
