• Bhubaneswar India
  • Contact+ 91-9938772605
  • Mon - Sat : 10:00AM - 6:00PM

71 Percent of Bengaluru Homebuyers Prefer Under-Construction Properties: Knight Frank Report

business Jun 4, 2025

Bengaluru, June 4, 2025: As India’s technology capital continues to attract talent and investment, the Home Buyer Survey 2025 by Knight Frank India has revealed several key insights about home buying behaviour and preferences within Bengaluru. The report, which mapped various trends in the city’s residential real estate space, highlighted how a significant majority (73%) of Bengalureans hold strong homebuying ambitions, though this reflects comparatively lower ownership sentiment than the national average of 80%.

The lower interest was influenced by high property prices and a significant influx of young professionals and a migrant population that favors rental accommodations.

Speaking on the report, Shantanu Mazumder, Executive Director – Bengaluru, Knight Frank India, said, “Bengaluru’s Silicon Valley status fuels a unique real estate market driven by its strong IT and startup ecosystem. This attracts a financially savvy demographic that views property as a strategic investment, a trend highlighted in our survey. This sophisticated buyer behaviour, alongside Bengaluru’s economic growth, presents significant opportunities for stakeholders. Our study’s insights will help tailor offerings to this discerning market and support sustainable homeownership.”

Bengaluru’s residential real estate: Investment focus, upgrades, and more

One of the most significant findings noted in the Home Buyer Survey 2025 was Bengaluru’s leadership in investment-driven purchases, with 40% of buyers viewing real estate as a financial asset. This was driven by the city’s strong price appreciation and its positioning as an economic hub attracting high-earning professionals. Additionally, a small but notable share of buyers in Bengaluru (11%) purchase properties for other reasons, such as retirement or acquiring second homes, indicating the city’s appeal for long-term wealth creation strategies.

Bengaluru shows significant latent demand: 36% of renters plan to buy, indicating opportunity for developers and tailored financing. Another interesting finding revealed was the significant demand for under-construction properties, with 71% of prospective homebuyers indicating interest in such projects.

Defining Decision-making: The key drivers for home ownership in Bengaluru

Bengaluru buyers prefer apartments (52%) for amenities, but also show strong interest (32%) in larger homes (villas/independent houses) reflecting space aspirations.

Bengaluru homebuyers prioritize proximity to shopping, healthcare, and green spaces. Key concerns are price, affordability, and builder reputation. Notably, mortgage reliance is lower (67%) with 21% using personal savings, indicating a financially strong buyer base. Bengaluru has lower mortgage reliance (67%), with 21% using personal savings, indicating a financially stable buyer base due to its tech hub status.