'₹20 lakh costlier': Bangalore real estate market under scrutiny as users slam inflated builder prices

A recent discussion on Reddit has stirred debate over whether Bangalore’s apartment market is significantly inflated, after one user shared a personal experience of comparing builder prices with resale listings. 

The Redditor recounted a visit to a Tier-1 builder’s under-construction project in South Bangalore. While Phase 1, set for handover in March 2026, was already sold out, the builder quoted ₹2.1 crore for a 3BHK unit in Phase 3, with possession expected only in 2030. By contrast, resale listings in the same society’s Phase 1 showed similar 3BHK configurations at around ₹1.9 crore, with sellers open to negotiations. 

“The builder is quoting ₹20 lakh more for an apartment that will be ready four years later compared to a resale property,” the user wrote, adding that the price differential made little sense. 

The post attracted wide engagement from netizens, many of whom echoed similar experiences and frustrations. 

One commenter wrote, “I’ve noticed the same thing in my society. They are selling under-construction projects that are three years away at the same price as ready-to-move-in flats, which makes no sense.” 

Another added, “Had a similar experience with a Tier 2/3 builder in West Bangalore. IMO, builders are trying their best to keep prices up but demand is drying up fast. Individual resellers who can’t hold for long are selling at lower prices.” 

Others defended the builder’s strategy, pointing to phase-wise price appreciation as standard industry practice. 

“When you buy into Phase 1, the same unit in Phase 2 will almost always cost more. That’s how builders ensure appreciation. Early buyers often make profits on resale,” explained a third user. “But since registration is due soon, costing another ₹10–15 lakh, many owners try to exit before that expense, making resale deals more attractive.” 

Price trends: Data backs rising costs 

Market data from real estate consultancies suggests that the Redditor’s frustration comes amid a broader surge in property values across Bangalore. 

Knight Frank’s Prime Global Cities Index Q2 2025 ranked Bangalore 4th globally, with 10.2% annual growth in prime housing prices. 

Across the city, property prices rose 12% YoY in H2 2024, with South Bangalore seeing up to 21% growth in ready projects, according to Homebazaar and ANAROCK insights. 

Under-construction homes are appreciating even faster — 25% annually in some pockets compared to 19% for completed projects. 

Growth is concentrated in North and East Bangalore, near IT hubs and infrastructure corridors, while premium projects dominate new launches. 

Market driven by builders 

The Reddit discussion underlines a paradox in Bangalore’s housing market. Builders continue to set higher benchmarks with each project phase, banking on steady demand, while resale sellers — often eager to avoid extra registration costs — offer relatively lower entry points. 

The result is a confusing landscape for buyers, where under-construction projects sometimes cost more than ready-to-move-in homes. 

As one Redditor summed it up: “Builders reset the market price with each phase, but resale buyers give you a faster and often cheaper deal. The question is, which premium are you really paying for?”