Bengaluru’s residential real estate market is finding a new equilibrium — and it’s centered firmly around the ₹2–3 crore price range. According to Sobha Ltd’s Managing Director, Jagadish Nangineni, this price band is fast emerging as the city’s “sweet spot,” primarily driven by end-user demand rather than speculative investment.
Also Read:- The Rise of Bangalore Real Estate: What Makes it a Hot Investment Spot?
A Shift Toward Practical Luxury
After several quarters of luxury-led growth, Bengaluru housing market is showing signs of pragmatic consolidation. Nangineni explained during Sobha Ltd’s Q2 FY26 investor call that affordability and ticket-size sensitivity are once again influencing homebuyer choices.
“More than 70% of our quarterly sales were sustained by end-user demand,” said Nangineni. “Projects like Sobha Townpark in South Bengaluru have witnessed the majority of transactions in the ₹2–3 crore bracket.”
This shift, he noted, reflects the growing preference for larger, high-quality homes within sustainable budgets, marking a balance between aspiration and affordability.
Also read:-Top 10 Builders in Bangalore: Projects | Reviews | History | Facts
Market Entering a Stable Phase
The Managing Director observed that Bengaluru’s real estate landscape is transitioning into a steady demand-supply phase after years of sharp price escalation.
“If supply continues to rise, prices will likely stabilize,” Nangineni said. “We foresee moderate, inflation-linked growth rather than the steep increases witnessed over the last four years.”
Regulatory Hiccups Ease After BBMP Restructuring
Nangineni also addressed the temporary project approval delays caused by the restructuring of the Bruhat Bengaluru Mahanagara Palike (BBMP) into the Greater Bengaluru Authority (GBA). The administrative transition had slowed down occupancy certificate issuance and other clearances.
However, the issue has now been resolved.
“With the new systems in place for all five corporations, we don’t expect further delays,” he assured.
This clarification came amid questions regarding the company’s Sobha Magnum project on Bannerghatta Road, which was briefly affected by the restructuring process.
Also Read:-Mumbai Vs. Bangalore Which is Better to Live
Bigger Communities, Stronger Sales
According to Nangineni, larger, well-planned communities are increasingly driving Bengaluru’s real estate momentum. Projects like Sobha Townpark have benefited from this buyer sentiment, creating what he calls a “virtuous cycle” of positive sales traction.
“Customers are gravitating toward larger gated developments because of delivery confidence, better infrastructure, and long-term community value,” he explained.
This pattern, he added, highlights a maturing market where buyers prioritize trusted developers, ready infrastructure, and long-term livability over speculative appreciation.
Sobha’s Q2 FY26 Performance Highlights
Sobha reported ₹3,981 crore in total sales value during the first half of FY26 — a 30% year-on-year jump. Bengaluru alone contributed 48% of overall sales.
In Q2 FY26, the company sold 770 homes worth ₹1,902 crore, with most transactions centered in the mid-luxury (₹2–3 crore) category.
Chief Financial Officer Yogesh Bansal added that Sobha recorded its highest-ever quarterly collections of ₹2,046 crore, closing the quarter with a net cash surplus of ₹751 crore.
“We have clear visibility of future cash flows and a strong financial footing supported by robust operational efficiency,” Bansal said.
Also read:- The Rise of Bangalore Real Estate: What Makes it a Hot Investment Spot?
Expansion Roadmap: A 24 Million Sq. Ft. Vision
Sobha Ltd is preparing for significant expansion this fiscal year. The developer plans to launch 8–9 million sq. ft. of new residential projects across seven to eight cities, including Sobha Magnus in South Bengaluru, and aims to complete 5.5 million sq. ft. by year-end.
Currently, Sobha holds a 15.96 million sq. ft. residential pipeline across 13 projects in 9 cities, with expected future inflows of ₹22,867 crore from ongoing projects.
“We’re also finalizing plans for an additional 24 million sq. ft. of developments,” Nangineni revealed. “Our existing inventory of 10 million sq. ft. has a potential sales value of ₹13,000 crore.”
This ambitious pipeline underscores the company’s confidence in sustained end-user demand, especially within Bengaluru’s fast-evolving mid-luxury housing segment.
Bengaluru’s Market Outlook: Balanced Growth Ahead
With infrastructure improving across key corridors like Bannerghatta Road, Sarjapur Road, and Electronic City, experts believe Bengaluru will maintain its status as India’s most resilient housing market.
Nangineni emphasized that stable pricing, infrastructure development, and end-user demand will keep the market healthy.
“We are entering a balanced phase where supply will catch up, and price growth will align with inflation,” he said. “This ensures long-term sustainability for both buyers and developers.”
Bengaluru’s residential real estate market is finding a new equilibrium — and it’s centered firmly around the ₹2–3 crore price range. According to Sobha Ltd’s Managing Director, Jagadish Nangineni, this price band is fast emerging as the city’s “sweet spot,” primarily driven by end-user demand rather than speculative investment.
Also Read:- The Rise of Bangalore Real Estate: What Makes it a Hot Investment Spot?
A Shift Toward Practical Luxury
After several quarters of luxury-led growth, Bengaluru housing market is showing signs of pragmatic consolidation. Nangineni explained during Sobha Ltd’s Q2 FY26 investor call that affordability and ticket-size sensitivity are once again influencing homebuyer choices.
“More than 70% of our quarterly sales were sustained by end-user demand,” said Nangineni. “Projects like Sobha Townpark in South Bengaluru have witnessed the majority of transactions in the ₹2–3 crore bracket.”
This shift, he noted, reflects the growing preference for larger, high-quality homes within sustainable budgets, marking a balance between aspiration and affordability.
Also read:-Top 10 Builders in Bangalore: Projects | Reviews | History | Facts
Market Entering a Stable Phase
The Managing Director observed that Bengaluru’s real estate landscape is transitioning into a steady demand-supply phase after years of sharp price escalation.
“If supply continues to rise, prices will likely stabilize,” Nangineni said. “We foresee moderate, inflation-linked growth rather than the steep increases witnessed over the last four years.”
Regulatory Hiccups Ease After BBMP Restructuring
Nangineni also addressed the temporary project approval delays caused by the restructuring of the Bruhat Bengaluru Mahanagara Palike (BBMP) into the Greater Bengaluru Authority (GBA). The administrative transition had slowed down occupancy certificate issuance and other clearances.
However, the issue has now been resolved.
“With the new systems in place for all five corporations, we don’t expect further delays,” he assured.
This clarification came amid questions regarding the company’s Sobha Magnum project on Bannerghatta Road, which was briefly affected by the restructuring process.
Also Read:-Mumbai Vs. Bangalore Which is Better to Live
Bigger Communities, Stronger Sales
According to Nangineni, larger, well-planned communities are increasingly driving Bengaluru’s real estate momentum. Projects like Sobha Townpark have benefited from this buyer sentiment, creating what he calls a “virtuous cycle” of positive sales traction.
“Customers are gravitating toward larger gated developments because of delivery confidence, better infrastructure, and long-term community value,” he explained.
This pattern, he added, highlights a maturing market where buyers prioritize trusted developers, ready infrastructure, and long-term livability over speculative appreciation.
Sobha’s Q2 FY26 Performance Highlights
Sobha reported ₹3,981 crore in total sales value during the first half of FY26 — a 30% year-on-year jump. Bengaluru alone contributed 48% of overall sales.
In Q2 FY26, the company sold 770 homes worth ₹1,902 crore, with most transactions centered in the mid-luxury (₹2–3 crore) category.
Chief Financial Officer Yogesh Bansal added that Sobha recorded its highest-ever quarterly collections of ₹2,046 crore, closing the quarter with a net cash surplus of ₹751 crore.
“We have clear visibility of future cash flows and a strong financial footing supported by robust operational efficiency,” Bansal said.
Also read:- The Rise of Bangalore Real Estate: What Makes it a Hot Investment Spot?
Expansion Roadmap: A 24 Million Sq. Ft. Vision
Sobha Ltd is preparing for significant expansion this fiscal year. The developer plans to launch 8–9 million sq. ft. of new residential projects across seven to eight cities, including Sobha Magnus in South Bengaluru, and aims to complete 5.5 million sq. ft. by year-end.
Currently, Sobha holds a 15.96 million sq. ft. residential pipeline across 13 projects in 9 cities, with expected future inflows of ₹22,867 crore from ongoing projects.
“We’re also finalizing plans for an additional 24 million sq. ft. of developments,” Nangineni revealed. “Our existing inventory of 10 million sq. ft. has a potential sales value of ₹13,000 crore.”
This ambitious pipeline underscores the company’s confidence in sustained end-user demand, especially within Bengaluru’s fast-evolving mid-luxury housing segment.
Bengaluru’s Market Outlook: Balanced Growth Ahead
With infrastructure improving across key corridors like Bannerghatta Road, Sarjapur Road, and Electronic City, experts believe Bengaluru will maintain its status as India’s most resilient housing market.
Nangineni emphasized that stable pricing, infrastructure development, and end-user demand will keep the market healthy.
“We are entering a balanced phase where supply will catch up, and price growth will align with inflation,” he said. “This ensures long-term sustainability for both buyers and developers.”
