₹1-crore reality: Why it’s the new entry price for homebuyers in Bengaluru despite talks of ‘cool down’

For years, prospective homebuyers in Bengaluru have clung to a familiar hope: prices will cool, the market will correct, and homes will once again become affordable. But fresh market data and on-ground trends suggest that hope has delivered little more than disappointment. 

The city’s real estate market has not merely become expensive — it has reset its baseline. What was once considered a premium budget is now the entry point. 

Chartered accountant and financial commentator Nirin Kaushik summed up this shift in a recent post on X (formally twitter), calling the ₹1-crore “dream home” in Bengaluru “officially a myth.” His assessment reflects a growing consensus among buyers, brokers and developers alike: waiting for prices to revert to pre-pandemic levels has yielded no meaningful results. 

₹1 crore is no longer ‘luxury’ 

Until a few years ago, a ₹1-crore budget was associated with high-end housing. Today, it barely secures a standard two-bedroom apartment in many established IT corridors. 

In areas such as Whitefield and Sarjapur, per-square-foot rates now range between ₹10,000 and ₹15,000. A typical three-bedroom apartment in these locations is priced between ₹1.5 crore and ₹2 crore — before accounting for interiors, registration and furnishing costs. 

Even Bengaluru’s once “affordable” outskirts are seeing sharp appreciation. Pockets near the airport and far North Bengaluru are crossing ₹7,000 per square foot, shrinking the options for first-time buyers hoping distance would offset price pressures. 

Why prices refuse to cool 

The surge is not being driven by speculation alone. Structural changes in buyer preferences and urban living are reshaping demand. 

One of the biggest shifts is the value placed on proximity. Long commutes have lost their appeal, especially after hybrid work models blurred the line between office and home. Buyers are increasingly willing to pay a premium for homes that reduce travel time to work, schools and daily amenities. In this market, time — not marble flooring — has become the true luxury. 

Safety and delivery certainty are another major factor. After years of stalled and delayed projects, buyers are prioritising reputed developers, often paying a 15-20% premium for Grade-A builders simply for assurance that the project will be completed on time. 

Rents, too, are pushing buyers toward ownership. With monthly rents for a two-bedroom apartment touching ₹45,000 in several localities, the traditional “rent versus EMI” calculation has tilted. For many households, EMIs now feel no more painful than rising rents, prompting a reluctant but decisive shift toward buying. 

New normal, not a bubble 

Unlike Mumbai or Delhi, Bengaluru is not following a legacy real estate trajectory. Instead, it is shaping a market where convenience, infrastructure and reliability dictate pricing. 

Experts note that the city’s continued role as India’s tech and startup hub, coupled with limited land availability in core corridors, makes a sharp price correction unlikely in the near term. The middle class, meanwhile, is being steadily pushed farther from employment centres as affordability erodes. 

Kaushik’s advice to buyers reflects this new reality: stop trying to time the market. Instead, focus on fundamentals — water security, infrastructure development, connectivity and proximity to work. The uncomfortable truth is that the ₹1-crore home in Bengaluru is no longer premium.