Short answer: Before buying a ₹2–5 crore home in Bengaluru, ask what you pay per sq ft of carpet area, the full cash outlay with 7.6% charges and 5% GST, how TDS and the loan work, and how much competing stock exists. Knight Frank counted 12,531 unsold units in this band in H1 2026, up 153% in a year.
- This band is growing fast: its share of Bengaluru sales rose from 22% to 29% between H1 2025 and H1 2026, and launches rose 50%.
- So is the stock: 12,531 unsold units, up 153%, about 3.6 quarters of sales (Knight Frank).
- Price per carpet sq ft is the real price: loading can add 25% to 30% between carpet and super built-up area.
- The cash bill is large: on ₹3 crore under construction, charges and GST alone come to ₹37.8 lakh.
- Our VALUE test covers what matters most at this price.
- What does the market look like in this price band?
- Questions about price and area
- Questions about cash and tax
- Questions about the loan
- Questions about the project
- Questions about living and resale
- Worked examples
- The VALUE test (our framework)
- Checklist for a ₹2–5 crore purchase
- CA note
- Lawyer note
- Frequently asked questions
- Talk it through with acre&key
- Sources
At this price, small percentages are big rupees. A 5% loading difference or a missed clause can be worth more than a car. These questions build on our 25 questions before house hunting, with the checks that matter most in this band.
What does the market look like in this price band?
| Measure, Bengaluru H1 2026 | ₹2–5 crore (INR 20–50 mn) | Source |
|---|---|---|
| Share of sales | 29%, up from 22% in H1 2025 | Knight Frank |
| Launches | Up 50% year on year | Knight Frank |
| Unsold units | 12,531, up 153% year on year | Knight Frank |
| Quarters to sell | 3.6 (about 11 months) | Knight Frank |
Source: Knight Frank, India Real Estate H1 2026, Bengaluru section. More stock gives you choice and room to negotiate. It also means more projects competing for the same buyers when you sell.
Questions about price and area
- What is the carpet area, as defined under RERA, and what's the price per carpet sq ft?
- What's the loading between carpet and super built-up area?
- Which extras are charged separately: parking, club, floor rise, corpus, utilities?
- How does the price compare with similar flats one road or one project away?
- What's the guidance value for this property on Kaveri?
RERA defines carpet area as the net usable floor area, excluding external walls, service shafts, exclusive balconies and open terraces (Real Estate Act, s.2(k)).
Questions about cash and tax
- What's the full cash outlay, including 7.6% stamp charges and 5% GST?
- Which payments fall due before possession?
- Will you deduct 1% TDS on the whole consideration, including extras? Since 1 April 2026 the rule sits in s.393 of the Income-tax Act, 2025.
- If you're selling a home to fund this, will the gain qualify for reinvestment relief under s.82? Gains above ₹10 crore don't count.
- Are you buying in joint names, and how will you split the tax benefits? See our joint home loan page.
See our full cost guide and capital gains guide.
Questions about the loan
- Is the loan above ₹75 lakh? If so, the lender can fund at most 75% of the value (RBI).
- Is the project approved by your lender, and does that cover tranche payments?
- Can you carry the EMI at your rate plus two points?
Questions about the project
- Is the project RERA-registered, and what's the completion date on the register?
- Have earlier projects by the same promoter delivered on their RERA dates? Our East Bengaluru delivery study shows how often dates slip.
- What's the density: units per acre, units per lift, and open space?
- Is the site near a lake or drain, and what happens in heavy rain?
Our RERA project review and flood-prone areas guide cover 14 to 17.
Questions about living and resale
- What will maintenance cost per month, and what's the corpus?
- Who will rent or buy this flat from you, and at what price?
- How many similar flats are coming up nearby in the next three years?
Worked examples
These use the approved 8.5% illustrative rate and a 20-year loan.
Worked example 1: the cash bill on ₹3 crore under construction
| Item | Working | Amount |
|---|---|---|
| Price | ₹3,00,00,000 | |
| Loan at 75% | ₹3 crore × 0.75 | ₹2,25,00,000 |
| Your share of the price | 25% | ₹75,00,000 |
| Stamp charges at 7.6% | ₹22,80,000 | |
| GST at 5% | ₹15,00,000 | |
| Cash before possession, excluding extras | ₹1,12,80,000 | |
| EMI on ₹2.25 crore | ₹2,25,00,000 × ₹867.82 per lakh | ₹1,95,260 a month |
| Take-home pay for EMI at 35% | ₹1,95,260 ÷ 0.35 | about ₹5.58 lakh a month |
TDS of 1% (₹3,00,000) isn't extra; it's part of the price, paid to the tax department. Ask your lender whether it will fund any GST, and get the answer in writing.
Worked example 2: two flats, one real price
| Flat A | Flat B | |
|---|---|---|
| Super built-up area | 2,400 sq ft | 2,200 sq ft |
| Carpet area | 1,680 sq ft | 1,650 sq ft |
| Loading | 30% | 25% |
| Quoted rate | ₹12,500 per sq ft | ₹13,000 per sq ft |
| Price | ₹3,00,00,000 | ₹2,86,00,000 |
| Price per carpet sq ft | ₹17,857 | ₹17,333 |
Flat B's quoted rate is higher, yet it's cheaper per usable sq ft and ₹14 lakh cheaper overall, for 30 sq ft less space.
The VALUE test (our framework)
| Letter | Question | Why it matters at this price |
|---|---|---|
| V: Verified area | What's the price per RERA carpet sq ft? | Loading differences are worth lakhs |
| A: All-in cash | What's the full outlay with charges, GST and extras? | Charges alone can pass ₹35 lakh |
| L: Loan fit | Does the loan work at 75% LTV and rate plus 2%? | The LTV cap raises your down payment |
| U: Unsold supply | How much competing stock is nearby? | Stock in this band rose 153% in a year |
| E: Exit | Who buys or rents it from you later? | A smaller pool of buyers at this price |
Checklist for a ₹2–5 crore purchase
- [ ] Get RERA carpet area in writing, and compute price per carpet sq ft.
- [ ] List every extra charge before negotiating.
- [ ] Price the cash bill, with 7.6% charges and any GST.
- [ ] Plan the 1% TDS and the form deadlines with your CA.
- [ ] Confirm the lender's project approval and 75% LTV.
- [ ] Check the promoter's past RERA completion dates.
- [ ] Visit after heavy rain.
- [ ] Use our stamp duty calculator.
CA note
TDS, capital gains reinvestment and joint ownership for tax depend on your situation. Ask a CA before you pay.
Lawyer note
Title, the agreement for sale and RERA terms need a property lawyer's review before you pay more than 10% of the price, which RERA allows only after a registered agreement (Real Estate Act, s.13).
Frequently asked questions
Price per RERA carpet sq ft, the full cash bill with charges and GST, the loan at 75% LTV, the promoter's delivery record, and competing stock nearby.
About ₹1.13 crore before possession on an under-construction flat with a 75% loan: ₹75 lakh of the price, ₹22.8 lakh charges and ₹15 lakh GST.
Yes. Knight Frank counted 12,531 unsold units in H1 2026, up 153% in a year, with launches up 50%. That gives buyers room to negotiate.
The difference between super built-up and carpet area, shown as a share of super built-up. At 25% to 30%, it changes the real price a lot.
Yes, 1% of the price or stamp duty value, whichever is higher, under s.393 of the Income-tax Act, 2025. Ask your CA about forms and deadlines.
At most 75% of the value, ₹2.25 crore, under RBI's cap for loans above ₹75 lakh. Your lender may offer less based on income.
Possibly, under s.82, if you buy within the time limits. Gains above ₹10 crore don't qualify. Confirm your case with a CA.
The pool of buyers is smaller, and stock in this band has risen. Check how many similar flats are coming up nearby before you buy.
Sources
Checked 19 Oct 2026.
- Knight Frank, India Real Estate: Office and Residential Market H1 2026, Bengaluru (ticket-size sales, unsold stock, QTS, launches): https://content.knightfrank.com/research/3116/documents/en/india-real-estate-office-and-residential-market-h1-2026-12927.pdf
- Real Estate (Regulation and Development) Act, 2016, ss.2(k), 13: https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf
- Income-tax Act, 2025, ss.82, 393: https://egazette.gov.in/WriteReadData/2025/265620.pdf
- Income Tax Department, Section 393: https://www.incometaxindia.gov.in/w/section-393-6
- RBI, Master Circular on Housing Finance (LTV caps): https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=12824
- GST Council, FAQ on real estate: https://www.gstcouncil.gov.in/sites/default/files/2024-02/faq-real-estate-sector.pdf
- Karnataka Stamp Act 1957: https://dpal.karnataka.gov.in/storage/pdf-files/34%20of%201957%28E%29.pdf
