Archive · 21 Aug 2025
Bengaluru Mid-Segment Housing Struggles Amid Cost Hikes
The housing market in Bengaluru for homes between ₹45 lakh and ₹1 crore is struggling.
Construction costs have gone up, making homes less affordable.
Sales have decreased, and builders are focusing on more expensive homes.
This is causing problems for people who want to buy homes in this price range.
Some builders are still trying to build homes in this segment by controlling costs.
Prices have gone up a lot in certain areas, leading to an affordability issue.
Bengaluru's mid-segment housing sales declined from 2022 to H1 2025.
Construction costs in India have increased by about 40%.
Developers are shifting toward premium projects, reducing mid-segment supply.
Home prices are rising faster than wage growth, creating an affordability crisis.
Some developers are focusing on mid-segment, using cost-saving methods.
- Who
- Homebuyers and developers in the mid-segment.
- What
- A downturn in Bengaluru's mid-segment housing market due to increased costs and reduced supply.
- When
- Sales declined from 2022 to H1 2025.
- Where
- Bengaluru, India.
- Why
- Rising construction costs and unaffordable prices.
Homebuyers
Developers
Affordability vs. Profit
Homebuyers
Rising home prices are unaffordable.
Developers
Developers are struggling with rising construction costs.
- Price Range
- ₹45 lakh - ₹1 crore
- Sales Decline (2022-H1 2025)
- From 28,270 to 5,660 units
- Construction Cost Increase
- 40%
- Mid-Segment Launches (H1 2025)
- 6% of new launches
- Bagalur Price Increase (2022-H1 2025)
- 75%