By continuing, you agree to LoansJagat's Credit Report Terms of Use, Terms and Conditions, Privacy Policy, and authorize contact via Call, SMS, Email, or WhatsApp
Disclaimer: The information published on LoansJagat is intended for general informational and educational purposes only and should not be considered financial, legal, or investment advice. Interest rates, loan terms, statistics, and other data may change over time and may vary by lender or source. Please verify the latest information and consult a qualified financial advisor or the respective Bank/NBFC before making any financial decisions.
Subscribe Now
About the author
LoansJagat Team
Contributor‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.
Related Blog Post
My college friend Sneha had recently bought a ₹5.2 crore luxury apartment in Koramangala. I was shocked. It is around half of her retirement fund. I thought she had got something virulent in her brain, but then most people were doing the same thing.
And that, my friends, further solidified my theory. Just kidding! To help me understand the whole concept, she shared with me her finances, which looked like:
Detail | Value | Implication |
Property Location | Koramangala, Bengaluru | Premium residential area |
Property Cost | ₹5.2 crore | High-ticket luxury apartment |
Sneha’s Total Retirement Fund | ₹10.4 crore | 50% used for property |
Estimated Monthly Maintenance | ₹30,000–₹45,000 | Ongoing expense post-purchase |
Rental Yield (Koramangala avg.) | 2.2%–2.8% annually | Lower income return vs. investment amount |
Property Appreciation (expected) | ~6% annually (in prime areas) | Depends on the market cycle |
I was pretty much convinced since Bengaluru's luxury home market saw over ₹1,000 crore worth of sales in just a few months. This was primarily due to HNIs, tech professionals, and even startup founders.
But what’s driving this shift? Why are young professionals investing crores in premium homes? Let’s answer all these questions in this blog!
‘Bhed Chal’
This is the term my mother uses whenever she sees someone following a trend. Increasingly, people are seeking to settle in high-end cities like Gurgaon and Bangalore.
In the fiscal year 2024–25, Bengaluru's luxury housing market achieved a record-breaking ₹1,000 crore in sales. Houses in the ₹10–₹12 crore price bracket saw the highest sales.
This is a significant 59% increase from the ₹627 crore recorded in the previous fiscal year. The number of luxury
homes sold also rose from 51 units to 78 units during this period.
This is the tabular representation of the data:
Fiscal Year | Units Sold (₹10 Cr+) | Total Sales Value (₹ Cr) | Average Ticket Size (₹ Cr) | Year-on-Year Growth |
2023–24 | 51 | 627 | 12.3 |
My cousin, Rakesh, who once worked as a mid-level techie, now heads a thriving fintech startup in Koramangala. Last month, he purchased a ₹12 crore villa in North Bengaluru. ‘Bahut Maze!’
Bengaluru's tech and startup ecosystem is producing a new class of high-net-worth individuals (HNIs). This includes startup founders and senior executives. These individuals are investing in ultra-luxury homes, viewing them as both status symbols and strategic investments.
For example, in January 2024, Aayush sold his SaaS startup for ₹42 crore. He allocated ₹15 crore to buy a 5BHK penthouse in Domlur with skyline views and automation. The villa was a status symbol, and in the coming years, it will also give high land values.
Detail | Aayush (Founder) |
Year of Purchase | 2024 |
Property Type | 5BHK Penthouse |
Locality | Domlur |
Every morning, I pass by the new Namma Metro station near JP Nagar, and there is only 1 constant thought. I think about how my friend Sushma’s ₹85 lakh flat there now has offers of more than ₹1.2 crore. Buyers are eager for homes near new metro links.
This is because of the upcoming Phase 3 metro line in Bengaluru. It will connect the southern parts of the city to the business district of Outer Ring Road. That is why real estate prices in these areas are expected to increase by at least 10% to 20%.
For example, in August 2023, Nivedita booked a 3BHK in JP Nagar for ₹1.25 crore. She took a ₹90 lakh loan and paid ₹35 lakh from savings. By mid-2025, prices in the project are expected to increase to ₹1.6 crore, representing a ₹35 lakh appreciation in under two years. Here’s how the entire journey will look:
Detail | Nivedita |
Purchase Price
₹1.25 crore
Home Loan
₹90 lakh
Down Payment
₹35 lakh
EMI (20 yrs @ 8.7%)
₹83,000/month
Simplify All Your Loans Into One Affordable EMI
Customers Served
Debt Consolidated
1200+ Reviews
Locations in India
Club all Loans & Credit Card Bills into Single EMI
Quick Apply Loan
Consolidate your debts into one easy EMI.
Takes less than 2 minutes. No paperwork.
10 Lakhs+
Trusted Customers
2000 Cr+
Loans Disbursed
4.7/5
Google Reviews
20+
Banks & NBFCs Offers
Other services mentioned in this article
—
2024–25 | 78 | 1,000 | 12.8 | +59% in sales value |
Total Cost | ₹15 crore |
Funding Source | ₹42 Cr exit fund |
EMI (20 yrs @ 8.7%) | Nil (paid upfront) |
Expected Value by 2027 | ₹19 crore |
ROI (Expected 3 Years) | 26% |
*T&C Apply
Price in 2025 (Current) |
₹1.6 crore |
Net Appreciation
₹35 lakh
ROI in 18 months
28%
Last year, my uncle was house-hunting in Bengaluru. I expected him to choose a modest 3BHK, but he opted for a high-rise penthouse in Hebbal. It has a rooftop infinity pool and private lounge. He said, “Paisa kahin to kharch karenge na!”
Like my uncle, many Bengaluru homebuyers are looking for luxury living spaces that offer modern amenities, innovative technology, and exclusivity.
For example, Pranav, a 37-year-old fintech exec, bought a ₹3.6 crore smart 3BHK in Whitefield in early 2024. He paid ₹80 lakh upfront and financed the rest. The apartment features smart home controls, a rooftop fitness area, and green balconies.
Aruna, a single mother and HR Director, bought a 2.9 crore flat in the same building. For her, intelligent surveillance and gated amenities were her top priorities. Both expect a 20–25% price increase within three years, driven by lifestyle demand.
Let’s see how they both experienced >20% ROI even with different living needs:
Detail | Pranav (Fintech Exec) | Aruna (HR Director) |
Price | ₹3.6 crore | ₹2.9 crore |
Down Payment | ₹80 lakh | ₹60 lakh |
Loan Amount | ₹2.8 crore | ₹2.3 crore |
EMI (20 yrs @ 8.7%) | ₹2.56 lakh/month | ₹2.10 lakh/month |
Target Price by 2027 | ₹4.4 crore | ₹3.6 crore |
ROI Estimate | 22% | 24% |
‘Ghar, Paisa, aur Gaadi’; they have all become status symbols rather than mere necessities. Bengaluru’s luxury housing boom demonstrates how rising incomes, urban growth, and shifting lifestyles can collectively increase the entire market value.
Tech founders and working professionals are investing big in comfort, returns, and status. For them, it is a new form of investment.
Other Related Pages | |||
