At 79% Bengaluru house prices rose the most in five years, check the property price rise in these 7 major cities

Bengaluru real estate housing prices increased by 79% in 5 years and this increase is more than all the four metropolitan cities of India (Delhi, Mumbai, Kolkata and Chennai). Moreover, data shows Bengaluru and Delhi NCR are the only two cities which have registered a reduction in unsold inventory of houses in the last five years, as per a 1Finance research report. A reduction in unsold inventory typically indicates relatively higher demand than supply and better sales. For the sake of comparison, Hyderabad registered a 177% increase in unsold house units in the last 5 years, while the per square feet prices increased by 43% in the same time period.

Read below to know the details.

Real estate housing prices in Bengaluru increase by 79% in last five years

1Finance has said in its report that Bengaluru has become an epicentre for India’s high-value IT startups and research & development, boasting the nation’s highest-paying technology jobs. The concentration of over 1 million tech professionals in the city fuels exceptional demand for housing and leads to aggressive price increases.

Here’s a comparison table showing the per square feet price as of March 2025 and how much it increased in the last five years:

Source: 1 Finance

Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, said, “We’re seeing two very different stories. Homebuyers who already own a property are benefiting from the recent price appreciation, but it’s the potential buyers who are facing a challenge. Many are worried about missing out while also being concerned about buying at peak prices, and this uncertainty is pushing them to make rash, emotional decisions.”

Real estate trends: Hyderabad, Pune, Delhi NCR, Mumbai, Chennai and Kolkata

According to 1 Finance research report,

Hyderabad

With its dual strengths in IT- research & development, product development and pharmaceuticals, Hyderabad has also become a hub for high-income professionals. This concentration of talent has fueled exceptional demand for housing and led to aggressive price increases.

Pune

While Pune remains a significant IT hub, its focus on back-office and support services results in more moderate salary levels. Consequently, it has experienced a more tempered housing market compared to the high-end R&D roles found in Bengaluru.

Delhi NCR

The region’s startup ecosystem has generated substantial wealth through successful IPOs like Zomato, Delhivery, and PolicyBazaar. ESOP holders and founders have created a new class of affluent buyers, driving exceptional demand in the premium and luxury housing segments with sudden wealth creation fueling aggressive price appreciation.

Chennai

Chennai’s manufacturing sector combines labour and machinery-intensive operations in automotive and electronics, creating stable, well-paying industrial jobs. This employment base supports consistent demand for mid-segment housing with steady price growth.

Kolkata

Kolkata’s economy relies heavily on labour-intensive textile manufacturing, resulting in lower average wages compared to other metropolitan markets. This income structure limits housing market expansion and keeps price appreciation modest.

Table showing the unsold house inventory in Bengaluur, Hyderabad, Delhi NCR, Mumbai and others: