Housing demand in major southern metros, particularly Bengaluru and Hyderabad, continues to remain strong despite wider concerns over affordability and uncertainty surrounding the job market, Brigade Group Managing Director Pavitra Shankar has said. Speaking at the company’s Q2 FY 2025-26 earnings call, she noted that homebuyer sentiment has remained resilient across categories, with inventory moving steadily in ongoing and newly launched projects.

Shankar emphasised that there is currently “no slowdown per se” in residential uptake, especially in Bengaluru, where absorption levels remain healthy even amid discussions over layoffs in the technology sector. The city, she said, continues to be a “net job creator”, which supports overall demand and future pricing trends.

Bengaluru demand stays robust despite layoff chatter

According to Shankar, Bengaluru has maintained its position as one of the country’s strongest housing markets, with consistent buyer interest across mid-segment, premium and high-end categories. “Despite conversations about job losses, there is still significant job creation happening in other parts of the economy, which keeps Bengaluru ahead as a market,” she said.

Developers from across India are increasingly expanding into Bengaluru, intensifying competition. Yet, Shankar noted that the city has the depth to absorb fresh supply. Residential prices in the city have nearly doubled on average in recent years, she added, reflecting strong end-user and investor demand.

Mid-segment emerges as Bengaluru’s growth engine

A major trend emerging this fiscal, Shankar said, is the rising demand for mid-segment homes in Bengaluru. Brigade categorises mid-segment properties as those priced between ₹75 lakh and ₹1.5 crore, premium between ₹1.5 crore and ₹3 crore, and luxury above ₹3 crore.

“In Bengaluru, there is a lot more demand in the mid-segment category,” she said. This shift is now influencing Brigade’s approach to both project design and land acquisition, especially in fast-growing suburban clusters in the east and north of the city.

While Bengaluru leads in overall absorption, she said that Hyderabad continues to perform strongly in the premium and luxury segments, particularly for homes priced above ₹5 crore. Chennai remains steady across categories, showing balanced demand in mid-segment, premium and high-end inventories.

Prices likely to rise 5–7% annually

Backed by sustained demand and low unsold stock across most micro-markets, Brigade expects home prices to rise 5–7% annually. Shankar clarified that the company adjusts prices based on the speed at which inventory sells, rather than offering heavy discounts.

“Our inventory is moving well across projects, so we are taking price hikes accordingly,” she said.

Brigade records steady sales, eyes major new launches

The company reported ₹2,034 crore in presales in Q2 FY26, marking a 12% year-on-year rise. Sales volumes were up 13% at 1.90 million sq ft, reflecting healthy residential uptake despite broader economic concerns.

In the first half of FY26, Brigade launched 3 million sq ft of residential projects with an estimated gross development value (GDV) of ₹3,200 crore.

For the second half, the company has visibility of around 7 million sq ft of new launches, with a projected GDV of ₹8,000–8,300 crore. These launches include the second phase of Brigade Gateway Hyderabad, which has already gone live, and a large mixed-use township in North Bengaluru expected to be launched in Q4, subject to approvals.

Multiple multi-phase residential projects are also planned across East Bengaluru, one of the hottest real estate corridors in the city.

Shankar said the company may fall slightly short of its earlier ₹9,000 crore sales target, as a substantial portion of H2 sales depends on upcoming launches. “We will try to achieve that number as much as possible,” she added.

Conclusion

Despite a mixed macroeconomic environment, southern real estate markets—particularly Bengaluru and Hyderabad—continue to show strong fundamentals, driven by urban migration, employment growth, and evolving buyer preferences. Brigade Group’s launch pipeline and steady sales growth underscore the resilience of the sector, with mid-segment housing emerging as a key driver in Bengaluru and premium categories steering Hyderabad’s momentum.