Bengaluru Housing Market Shines in Q2, Records 30% Surge in Value and 19% Growth in Transactions

According to a recent study by Square Yards, Bengaluru saw a remarkable sale of 28,356 residential units in this year’s second quarter. This surge marked a 19% quarter-on-quarter increase in the city’s total transactions. The total value of registered sales recorded an even sharper 30% surge, reaching Rs. 19,631 by the quarter’s end.

“Bengaluru’s residential market remains northbound, continuing its upward trajectory with double-digit sequential growth in the June quarter”, remarked Sopan Gupta, principal partner at Square Yards. He highlighted the contributors to this quarterly growth: “Despite challenges such as flooding and water shortages, homebuyer demand remains notably resilient, underpinned by a strengthening IT sector and the blend of full-time and hybrid working models.” 

The average registered sales value in Bengaluru also recorded a 9% quarterly increase, now reaching Rs. 0.69 crore. The study also largely credited a rising preference for premium properties among homebuyers in the city for this spike in the value.

Area-Wise Trends

Northern Bengaluru made the maximum contribution, accounting for 35% of the total transactions, with strong performances from areas like Sadahalli and Devanahalli. South Bengaluru, on the other hand, stood next with a 30% share. Areas like Electronic City and Jayanagar were key performers. 

Sopan Gupta observed, “Our data highlights that while the East and Southern suburbs retain their appeal, Northern suburbs are rapidly emerging as key areas of interest for both apartments and plots. Branded developers, particularly those delivering quality projects, are witnessing successful launches with swift offtake. Given the ongoing trends, we are optimistic that the residential market will maintain its upward trajectory. Homebuyer sentiment is expected to strengthen further, driven by the much-needed infrastructure upgrades and the development of IT parks across the city. These factors will likely attract more working professionals, reinforcing both commercial and residential demand in Bengaluru.”

Preferred Property Types 

Square Yards’ latest report also recorded increased demand for spacious properties in Bengaluru. “Regarding property size, homes ranging between 1,000 and 1,500 sq. ft. dominated the market, accounting for 48% of total transactions. This trend reflects a sustained preference for larger living spaces post-pandemic, driven by the adoption of hybrid working models by IT/ITes firms.”, the report highlighted. 

Further, properties below Rs 50 lakhs constituted 62% of the total transactions, while properties between Rs 50 lakhs and one crore constituted a 23% share. 

Citing the report, Founder and CEO of White Lotus Group, Pavan Kumar, highlighted new additions to the market as one of the leading causes of the average price increase. He remarked, “The increase in new launches, particularly in the premium and luxury segments, has significantly contributed to the rise in average prices, with nearly 75 per cent of new units in H1 2024 falling into these high-end categories while witnessing a Grade A absorption rate of 71 per cent, reflecting continued demand from IT parks and multinational corporations.”

Key Players

In terms of transactions, the Prestige Group and Godrej Properties emerged as the leading market players. Take a look at some of the Bengaluru’s top performers for the second quarter below: 

In terms of sales value, the market was led by the Embassy Group. The Embassy Springs, a plotted development, was the group’s highest-selling project, re-emphasising the increased demand for plotted developments in the city. Here are the quarter’s top performers: 

The Way Ahead

As the rapid infrastructural growth of India’s Silicon Valley continues to accelerate its residential demand, investors and developers particularly enjoy high buyer confidence in the market. With the rise of IT parks and a growing population influx, experts expect the positive momentum to continue through the coming quarters. 

Read more through the links below to uncover the key trends and market leaders driving this growth:

Deccan Herald – https://bit.ly/3XyPXWJ
News18 India – https://bit.ly/47hJq64
Rediff.com – https://bit.ly/3TlaR9p
Press Trust of India – PTI – https://bit.ly/3Tl4Jhi
Business Journal – https://bit.ly/3TmPTXL
Square Feat India – https://bit.ly/3TlWL7r
The Pioneer – https://bit.ly/3ZhsXg5