Developers pivot to mid-segment as white-collar uncertainty hits high-end home sales

Bengaluru’s Luxury Housing Market Sees Cooldown Amid Job Cuts, Economic Caution

Bengaluru’s luxury housing market is showing signs of softening amid rising job losses, global economic uncertainty, and cautious buyer sentiment. Home sales in Q2 2025 dropped 8% year-on-year despite a 12% price rise, according to ANAROCK. Developers are now recalibrating their portfolios, shifting focus to mid-premium homes priced between ₹80 lakh to ₹2 crore, particularly to meet demand from salaried buyers. While Grade A developers in areas like Whitefield face oversupply and inflated pricing, demand in prime localities such as Indiranagar and Koramangala remains resilient. Flexible payment plans and upfront discounts are being offered—uncommon until recently in the ₹2.5 crore-plus bracket. Experts say buyers now take longer to decide due to financial insecurities and layoffs from major tech firms like TCS and Microsoft. However, luxury remains vital for branding and is supported by steady demand from NRIs, HNIs, and Global Capability Centres (GCCs), which continue expanding in the city.