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We recently visited Bengaluru to assess the overall state of the real estate market. Real estate demand in Bengaluru is resilient, with the momentum seen in FY26 continuing in FY27TD. While demand remains strong, supply is expected to increase ahead – we expect significant rise in supply, particularly from wellfunded developers in Bengaluru. While the regulatory environment is improving, challenges do persist. On the pricing front, developers are undertaking price escalations of 5-7%. Listed players—including SOBHA, BRGD, PEPL, and GPL— with significant footprint in Bengaluru are likely to deliver healthy sales in 2Q, predominantly driven by sustained sales momentum.

Resilient demand in sweet-spot segment

Premiumization, coupled with growing preference for larger homes and established developers, continues to support sales momentum for listed developers. Demand is resilient in the Rs15–25mn ticket-size segment (ie the sweet-spot segment), although buyers have become more selective, with product design, configuration, and micro-market positioning playing an increasingly important role in driving absorption. In contrast, demand has softened for units priced above Rs25mn. Launch-period absorption has also moderated, to 40–45% from 45–60% earlier, particularly for higher-ticket units. North Bengaluru continues to witness higher traction, supported by airport connectivity, an expanding employment ecosystem, and infrastructure upgrades. Price escalation remains at around 5–7%.

Supply set to increase

As approval-related challenges ease, project launches are expected to increase. In addition, the Premium FAR policy, which was introduced 1–1.5 years ago, has recently been notified. The policy allows developers to purchase additional FAR over and above the standard limit, by paying prescribed charges to the government – overall 1.5-1.6x over the existing permissible limit. Developers are already utilizing the additional development potential; however, the extent of incremental loading remains largely contingent on land availability and project location.

Quick snapshot of some players – SOBHA, BRGD, PEPL, and GPL Sobha:

In 2QFY27, SOBHA launched two projects with aggregate GDV of Rs12bn in Kerala and Mysore. It has another launch pipeline—of Rs100bn GDV in 2HFY27—of which ~Rs40bn GDV is in Bengaluru. SOBHA is expected to see pre-sales of >Rs20bn in 2QFY27 and ~Rs110bn (35% yoy) in FY27E. Brigade Enterprises: In 2QFY27, BRGD launched two projects with overall GDV of Rs27bn, in Hyderabad and Mysore. Further, it has a 2HFY27 launch pipeline of ~Rs80bn GDV (~7msf), of which ~Rs40bn GDV is in Bengaluru. BRGD is expected to see pre-sales of >Rs15bn in 2QFY27 and ~Rs85-90bn (15-20% yoy) in FY27E. Prestige Estate Projects: In 2QFY27, PEPL launched three projects with total GDV of Rs42bn – two in Bengaluru and one in Chennai. Further, it has a 2HFY27 launch pipeline of Rs275bn GDV, of which ~Rs25bn GDV is in Bengaluru, Rs80bn GDV in NCR, Rs128bn GDV in Chennai, Rs25bn GDV in MMR, and Rs29bn in Hyderabad. PEPL expected to see pre-sales of >Rs60bn in 2QFY27 and ~Rs350bn (17% yoy) in FY27E. Godrej Properties: In 2QFY27, GPL launched four projects with total GDV of Rs31.5bn, in Noida, Bengaluru, Nagpur, and Raipur. In addition, it has two projects, in Panvel and Bengaluru—with total GDV of Rs21bn (RERA approval received)—which are likely to be launched in 2QFY27. Further, it has a 2HFY27 launch pipeline of Rs354bn GDV, of which ~Rs12bn GDV is in Bengaluru. GPL is expected to see pre-sales of >Rs80bn in 2QFY27 and ~Rs390bn (14% yoy) in FY27E.

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