Bengaluru's Housing Divide: Luxury Soars, Budget Flats Face 5-Year Backlog

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Moneycontrol•08-01-2026, 18:22
Bengaluru's Housing Divide: Luxury Soars, Budget Flats Face 5-Year Backlog
- •Bengaluru's residential market shows a stark divide: surging demand for luxury homes vs. declining absorption of budget flats.
- •Unsold housing inventory swelled by 25% to 67,518 units by end of 2025, concentrated in lower-priced segments.
- •Properties below Rs 50 lakh face a 20.3 quarters-to-sale (QTS) ratio, indicating over five years to clear stock.
- •Premium homes (Rs 1-5 crore) boast strong sales with a brisk 2.9 to 3.1 QTS, signaling robust demand.
- •Buyers now prioritize amenities, location, and larger 1,600-2,000 sq ft homes from branded developers, leading to a 7% increase in average unit size launched in 2025.
Why It Matters: Bengaluru's real estate shifts to premium focus, leaving budget homes with significant unsold inventory.
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