The residential real estate market in Bangalore recorded robust growth in the fourth quarter of 2023. There were 17,730 transactions valued at Rs. 14,436 crore according to Square Yards Data Intelligence for registration of properties by the IGR (Inspector General of Registration), Karnataka.
City-based Prestige Group led in terms of registered units in the quarter with a tally of 276 units, followed by Sobha Group with 218 transactions. L&T Realty was the leader in terms of sales value, notching up Rs. 1,004 crore from real estate sales. The second position was occupied by Phoenix Mills, tapping into luxury and mid-segment demand and posting sales of Rs. 307 crore. Embassy Group, Godrej Properties and Birla Estates were the other developers with good performance figures in the quarter between October and December, 2023.
According to the Co-Founder and Sales Director, Square Yards Bangalore, Sopan Gupta, the residential market has been booming in Bangalore all throughout last year, with sizable demand from young professionals and millennials. Some of the factors behind skyrocketing demand include the growing need for homeownership, higher disposable incomes, and wise decisions from these customer segments to invest early on in their carers. Bangalore has a flourishing IT and ITeS hub in tandem with a cosmopolitan ambience, lovely weather, profitable investment options in terms of rental income and capital growth, and also an established metro network, according to him. He also added that these were factors pulling more homebuyers to the city.
The L&T Raintree Boulevard project garnered Rs. 1,019 crore in sale value while Birla Estates had the highest transaction figures at 207 units in registrations. Phoenix Mills also preformed impressively in the quarter in terms of volumes. Economic growth and the start-up boom in the city have transformed the realty market in Bangalore. South Bangalore saw 5,866 transactions, benefiting from its social amenities, connectivity via Kanakapura and Sarjapur Roads, and IT hotspots like Koramangala. North Bangalore had the highest sales value of Rs. 4,564 crore. It performed well due to factors like the development of SEZs and the boom in the IT sector. East and Central Bangalore also did well in this period, with some micro-markets like Whitefield, Krishnarajapura, Electronic City, JP Nagar and Sahakara Nagar being the top picks for potential homebuyers.
Homebuyers were more inclined towards the affordable category with properties priced below Rs. 50 lakh for the quarter. This segment accounted for 48% of the total transactions. The trend is in sync with annual property price growth of 5% in Bangalore. Properties between Rs. 50 lakh and Rs. 1 crore saw growth of 34% on a quarter-on-quarter basis, underlining growing preference of customers for mid-range homes with good amenities. Ultra-luxury and luxury homes saw growth to 18% from 15% in Q3 2023. 1,000-1,500 sq. ft. homes were the dominant units in transactions, followed by 1,500-3,000 sq. ft.
Bangalore is expected to witness consistent real estate growth in the near future with the continued progress of its IT/ITeS industry along with infrastructural development.
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Published Date: 6 March, 2024
