Bengaluru Emerges as Premier Real Estate Market in India
Bengaluru has solidified its position as the top residential real estate market in India, with impressive numbers for the April-June period of this year. According to JLL Research, a total of 18,548 housing units were sold during this period, while 16,537 homes were launched.
Luxury Segment Dominates Launches in Bengaluru
An interesting finding from the analysis is that the majority of the launches, around 63%, fell within the upper-mid segment, which consists of apartments priced between Rs 1 – 3 crore. Additionally, it’s worth noting that these launches contribute significantly to the overall real estate market, considering Bengaluru accounted for approximately 21% of the total residential launches in India during the study duration.
The reasons behind Bengaluru’s success in the real estate market can be partially attributed to the city’s booming IT sector, ongoing infrastructure upgrades, and a business-friendly environment. These factors have created a favorable backdrop for sustained demand in the housing market.
Rapid Rise in Annual Launches
The study also revealed an impressive trend in the first half of the year, with 29,153 unit launches already reaching almost 60% of the highest-ever annual launches recorded in Bharat during 2022. Furthermore, the analysis highlighted that the premium segment launches, priced between Rs 3-5 crore, experienced remarkable annual growth of over 200% compared to the first half of 2023.
Whitefield Retains Dominance
A breakdown of micro-market data within Bengaluru showcases Whitefield in East Bengaluru as a dominant player in the real estate landscape. This locality was responsible for about 47% of the fresh supply and an impressive 57% of the total sales during the June quarter. Additionally, the areas of Hosur Road and Bellary Road also made significant contributions to the overall market.
Senior Managing Director, Karnataka and Kerala at JLL India, Rahul Arora, attributed this success to Whitefield’s connectivity to Kempegowda International Airport and the interest it has sparked among reputed developers. He noted that several projects were announced in this area with price ranges primarily between Rs 1 – 3 crore.
Increase in Property Prices and Decrease in Unsold Inventory
The study highlighted a nearly 15% annual increase in the average property prices in Bengaluru during the first half of 2024. This surge can be attributed to the launch of premium projects at higher rates as well as the quick sale of quality launches, particularly in the regions of Whitefield and North Bengaluru.
In terms of inventory, unsold units decreased by approximately 21% on a year-on-year basis in the first half of 2024. The total unsold inventory stood at 70,147 units. This decline in unsold inventory can be partially attributed to 31% of the launches in the same period successfully being sold out.
With the promising momentum observed in recent quarters, it is expected that the months needed to sell the available inventory in Bengaluru will continue to decline in the near to medium term.
The findings speak volumes about Bengaluru’s real estate market, positioning it as the premier residential destination in India. With a robust IT sector, continuous infrastructure development, and a conducive business environment, the city’s real estate market is thriving and attracting both developers and homebuyers, particularly in the upper-mid and luxury segments. As the demand for properties in Bengaluru remains strong and unsold inventory decreases, it is expected that the city will further solidify its status as a top real estate market in the country.
