Bengaluru, often known as India’s tech capital, has become a hotbed for real estate activity, especially among millennials. Young, tech-savvy professionals are now fueling the demand for homes priced between ₹1 crore and ₹2 crore. This surge in demand is not just a reflection of the city’s booming tech-driven job market but also a shift in the aspirational mindset of young homebuyers. Real estate developers have been quick to respond to this new trend, creating offerings that cater to millennials seeking larger, more modern homes in well-connected areas. This article delves into why millennials are gravitating towards the ₹1–2 crore home segment in Bengaluru and the impact it’s having on the city’s real estate market.
Rising Demand for ₹1–2 Crore Homes in Bengaluru
The Millennial Factor:
Bengaluru’s real estate market is increasingly dominated by millennials, particularly those in the 30–40 age bracket. This demographic is not only looking for larger living spaces but also for a home that reflects their success in a rapidly growing job market. According to Knight Frank India’s latest report, the ₹1–2 crore price range accounted for the highest number of property launches and sales in the first half of 2025, with a staggering 12,429 units sold.
Vivek Rathi, Head of Research at Knight Frank India, attributes this rise to the city’s strong tech-driven job market, which attracts a younger, more mobile workforce. “Millennials are the most active segment in the ₹1–2 crore range as they are in the ideal age and income bracket for first-time homeownership,” says Rathi.
Investment Appeal of the ₹1–2 Crore Segment:
For many millennials, purchasing a home is not just about owning a place to live but also about securing a solid investment. In Bengaluru, this price range offers a unique opportunity to enjoy good rental yields. Although rental yields typically decrease with rising property prices, experts suggest that the ₹1–2 crore segment still provides ample room for lucrative returns, making it attractive to investors.
Key Locations Driving Demand for ₹1–2 Crore Homes
North Bengaluru:
Areas such as Bagalur, Hebbal, Hennur, and Kothanur are witnessing an increasing number of new launches in the ₹1–2 crore range. Here, buyers can find spacious 3BHK apartments between ₹1.3 crore and ₹1.8 crore, with sizes around 1,400–1,500 sq ft.
East Bengaluru:
The eastern IT corridor, particularly Whitefield, Budigere Cross, and Old Madras Road, continues to see high demand. In this part of the city, 2BHK and 2.5BHK homes are priced between ₹90 lakh and ₹1.5 crore.
South Bengaluru:
South Bengaluru is also seeing growth, with gated communities on Kanakapura Road, Mysuru Road, and Electronic City offering 2 and 3BHK apartments starting at ₹1 crore.
Central Bengaluru:
Although premium properties in central Bengaluru such as Indiranagar and Koramangala are mostly found in the resale market, they remain in high demand due to their prime locations and the sense of community they offer.
A Shift in Developer Strategy: More Aspirational Housing
According to the Knight Frank report, Bengaluru’s developers are increasingly focusing on the ₹1–2 crore segment, which saw a 44% increase in new launches year-on-year. In total, 16,255 units were launched in the ₹1–2 crore range in the first half of 2025, accounting for 72% of all new launches in the city. Meanwhile, affordable housing categories like those priced under ₹50 lakh have seen a decline in new launches.
This shift marks a pivot in developers’ strategies, moving toward aspirational housing for a younger, more affluent clientele.
Quick Facts:
| Metric | Value |
|---|---|
| Total Sales in ₹1–2 Crore Range | 12,429 units in H1 2025 |
| New Launches in ₹1–2 Crore Segment | 16,255 units (up 44%) |
| Largest Demand Areas | North, East, South Bengaluru |
| Popular Property Size | 2BHK to 3BHK |
| Median Property Price Range | ₹1 crore – ₹2 crore |
Quotes from Real Estate Experts:
Vivek Rathi, Head of Research, Knight Frank India:
“In Bengaluru, the job market’s tech focus means that millennials are the primary drivers of demand in the ₹1–2 crore segment. They are looking for homes that provide both space and investment potential.”
Sunil Singh, Realtor, Realty Corp:
“Many millennials are now upgrading to larger homes or purchasing properties for their parents. It’s a trend we are seeing more and more as their incomes grow and they seek better amenities and spaces.”
FAQ Section:
1. Why are millennials interested in ₹1–2 crore homes in Bengaluru?
Millennials are drawn to this price range due to Bengaluru’s strong job market, especially in tech. This segment provides the right balance of space, amenities, and investment potential.
2. What are the most sought-after areas for ₹1–2 crore homes in Bengaluru?
Key areas include North Bengaluru (Bagalur, Hebbal), East Bengaluru (Whitefield, Old Madras Road), and South Bengaluru (Kanakapura Road, Mysuru Road).
3. Are these homes mainly for first-time buyers?
Yes, a large percentage of buyers in the ₹1–2 crore range are first-time homebuyers looking for modern, spacious apartments in well-connected areas.
4. How has the real estate market shifted in Bengaluru in 2025?
There’s been a noticeable pivot towards more aspirational housing, with a significant increase in launches in the ₹1–2 crore range, while affordable housing launches have declined.
5. What role does rental yield play in this market?
Rental yield is a key factor, especially for investors. Despite higher property prices, the ₹1–2 crore range still offers decent rental returns, keeping investors interested.