Diwali 2025: Homebuyers turn cautious this festive season as luxury sales stay strong in Bengaluru

Bengaluru’s real estate market sees steady luxury demand during Diwali 2025, but cautious homebuyer sentiment this festive season

Bengaluru’s real estate market is witnessing a festive season marked season including Diwali 2025 with steady activity and shifting buyer sentiment. While demand in the luxury housing segment remains strong, homebuyers are approaching home buying with greater caution and deliberation than the exuberant rush seen last year, experts say.

Bengaluru’s real estate market this festive season, including Diwali 2025, shows steady activity but more cautious buyers, unlike the rush seen last year, experts say. (Representational Image)(Unsplash )

According to NoBroker, the overall mood is more discerning, with homebuyers spending more time evaluating their options.

“The lead-to-buy time, which had narrowed to 45 days due to FOMO-driven decisions last year, is now increasing steadily,” said Saurabh Garg, co-founder of NoBroker. “Buyers are more cautious this year, taking their time to compare projects and assess long-term affordability.”

Luxury sales stay strong, but market turns end-user driven

The premium housing segment, priced above ₹1.5 crore, remains a standout performer, contributing to over 30% of total property sales in Q3 2025, NoBroker data showed. Bengaluru’s ultra-luxury villas, villaments, and branded apartments are attracting both HNIs and NRIs, reaffirming the city’s reputation as a preferred investment hub.

However, the nature of demand has shifted. With prices having risen steadily and rental yields stabilizing at 2–3%, investor activity has cooled, giving way to genuine end-user demand. “The market this year is primarily end-user driven,” Garg noted, contrasting it with last year when investors were equally active.

At the same time, ready-to-move-in homes are gaining significant traction, especially in areas like Whitefield, Sarjapur Road, North Bengaluru, and Electronic City. Homebuyers are prioritisng convenience, certainty of possession, and avoidance of project delays over speculative gains.

North Bengaluru is the most sought-after

In terms of geography, North Bengaluru and emerging corridors like Yelahanka, Devanahalli, and Kannamangala are showing the strongest growth compared to last year. “Developers are heavily focusing on these zones, and the steady appreciation here, especially in Kannamangala, where land is still 20–30% cheaper than Whitefield, presents long-term value for both buyers and sellers,” Garg said.

According to NoBroker’s data, 83% of tenants now prefer direct rental arrangements, up from 75% last year.

Festive slowdown hits Bengaluru’s property market as buyers adopt wait-and-watch approach

Despite the festive season, typically a peak period for Bengaluru’s housing market, brokers across East and North Bengaluru report a noticeable dip in buyer activity. Site visits and enquiries have slowed, with many prospective homeowners choosing to delay their purchase decisions.

“The footfall we usually expect during Dussehra and Diwali just hasn’t materialised this year,” said Kiran Kumar, vice president at Hanu Reddy Realty. “Buyers are more deliberate, they’re evaluating options, negotiating harder, and holding out for better clarity on policies and pricing.”

Industry estimates suggest enquiries have dropped by about 20–25% over the past two months, especially along the city’s eastern tech belt from Whitefield to Sarjapur Road. The cooling sentiment, experts say, stems from recent regulatory shifts and uncertainty about how they could affect housing costs and project timelines.

Still, the outlook isn’t entirely downbeat. “It’s not that demand has vanished; it is maturing,” Kumar said. “People continue to believe in Bengaluru’s growth potential, but the days of impulse buying are over. This pause reflects a more informed and value-driven buyer mindset.”