Bengaluru Housing Sales Rise 5% in First Half of 2026: Knight Frank

Bengaluru's residential market maintained steady momentum in the first half of calendar 2026, with 27,968 homes sold — a 5 per cent year-on-year increase, according to Knight Frank India, the Indian arm of the UK-based property advisory firm.

New housing project launches also rose, increasing by 4 per cent to 34,749 units during the same period. Residential prices continued their upward trend, rising 9 per cent year-on-year to an average of ₹9,354 per square foot, reflecting healthy absorption and a sustained shift toward higher-value homes, the firm reported.

Although the market saw some moderation following the decadal high performance of 2025, demand remained resilient, supported by the city's expanding employment base, continued infrastructure investments, and sustained demand for premium housing, Knight Frank noted.

The resilience of Bengaluru's residential market is closely linked to the city's expanding economic base. As multinational companies deepen their presence and high-value employment grows, housing demand has remained healthy despite rising prices and affordability pressures, the report added.

In the office segment, Bengaluru recorded overall office transactions of 14.1 million square feet in the first half of 2026, the highest in the country. New office completions surged to 10.4 million square feet, a significant increase as several delayed Grade A developments were completed during the period.

This healthy demand environment supported rental growth across premium office locations, with average transacted rents rising 8 per cent year-on-year to ₹102 per square foot per month, according to the report.

Bengaluru continues to strengthen its position as the country's premier destination for Global Capability Centres (GCCs), recording 8.5 million square feet of GCC-led office space leasing in H1 2026 — the highest among all cities. GCCs accounted for 60 per cent of the city's total office transactions. Beyond traditional technology occupiers, artificial intelligence (AI) is emerging as a key demand driver for Bengaluru's office market.

Rahil Gibran, Executive Director, Occupier Strategy and Solutions, Bengaluru, Knight Frank India, said, “Bengaluru's office market continues to demonstrate exceptional resilience despite global economic uncertainties. The city's ability to consistently attract Global Capability Centre investments reflects its enduring competitive advantages, including a highly skilled talent pool, a mature technology ecosystem and world-class office infrastructure.”