Bangalore Residential, Q2 2026

Headline numbers

Bangalore residential pricing grew 11.3% year-on-year in Q2 2026, accelerating from 9.6% YoY in Q1. New launch supply was up 14% QoQ. Inventory absorption tightened across all major IT corridors, with Whitefield reducing to 9 months of inventory from 12 in Q1.

Micro-market leaderboard

Devanahalli (+18% YoY)

The airport corridor continued its breakout. Birla Trimaya, Embassy Springs Phase II, and three new launches from Sobha and Godrej collectively absorbed ₹1,800 Cr of new bookings in Q2. Median price now ₹9,200/sqft, up from ₹7,800 in Q2 2025.

Sarjapur Road (+13% YoY)

The IT corridor's perennial workhorse. Strong absorption in the 2 BHK and 3 BHK segments. Median price ₹8,600/sqft. Rental yields holding at 3.6% gross, the strongest in the city for stabilized inventory.

Hebbal (+12% YoY)

The metro extension to Hebbal (Phase 2A) is now expected to open in early 2027, six months later than original plans. Despite the delay, buyer interest accelerated through Q2 as the corridor's land-acquisition risk de-risked. Median price ₹9,800/sqft.

Whitefield (+9% YoY)

Saturating, but the saturation is at high pricing. Median ₹10,100/sqft. Rental yields softening to 3.2% as supply continues. Still a reliable hold; we are not adding new buyer recommendations here unless the project specifics are exceptional.

Electronic City (+10% YoY)

Phase II is the story. Median ₹6,900/sqft, still 25-30% cheaper than Sarjapur. Strong rental demand from the corporate park ecosystem. Our top recommendation for first-time investor buyers with a sub-₹1.5 Cr budget.

Hennur Road (+15% YoY)

The breakout micro-market of Q2. Median ₹8,400/sqft, up from ₹7,300 in Q2 2025. Connectivity improvements (Outer Ring Road East upgrade, Hennur metro link in long-term planning) underpin the move.

Inventory and absorption

Months-of-inventory tightened across the board:

• Whitefield: 12 → 9
• Sarjapur Road: 11 → 8
• Hebbal: 14 → 11
• Devanahalli: 18 → 13
• Electronic City: 10 → 8

Across the city, we estimate 6.2 months of inventory as of Q2 close, historically low. This usually precedes a 3-6 month period of stronger price growth.

Rental yields

Gross rental yields across the IT corridor stabilized at 3.4-3.7%. Premium luxury inventory (>₹5 Cr) yields 2.6-3.1%. Investor demand for the 2 BHK / ₹1.2-1.5 Cr segment remains the strongest single signal in the city, over 60% of investor bookings sit in this band.

What we're watching in Q3

1. The Hebbal metro Phase 2A opening (now early 2027), its eventual delivery date will trigger another step up in Hebbal corridor pricing. 2. The next wave of Devanahalli launches from Godrej and Sobha, pricing could break ₹10,000/sqft for the first time in this corridor. 3. The Karnataka housing-supply policy review, pending state-level changes to FSI / TDR rules could meaningfully shift supply economics.

What we're recommending

• For investors: Electronic City Phase II 2 BHKs at ₹1.2-1.5 Cr, best yield-plus-appreciation balance currently available.
• For end-users with ₹2-4 Cr budgets: Sarjapur Road or Hebbal, both have strong fundamentals and reasonable inventory selection.
• For HNI / villa buyers: Devanahalli, the airport-corridor narrative will compound for another 3-5 years.

The contrarian view we hold

We are stepping back from far-north Yelahanka, off-corridor Sarjapur, and peripheral Mysore Road. Each has supply overhang or connectivity issues that we don't see resolving in the next 18-24 months.

This is our Q2 2026 snapshot. The next report publishes in early Q3 2026. Subscribe via the form on our contact page to be notified, note: newsletter is on our v1.1 roadmap and not yet active.

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*All data drawn from a combination of developer disclosures, RERA filings, sub-registrar transaction data, and our own client-engagement records. Numbers are best-effort estimates and should not be relied on for legal or financial decisions without independent verification.*