Bengaluru Leads Residential Real Estate Market in India with Highest Home Sales and Launches
Bengaluru has emerged as the leading residential real estate market in India, with impressive sales and launches. According to JLL Research, during the April-June period of this year, a total of 18,548 housing units were sold, while 16,537 homes were launched. This represents a significant achievement for the city.
Bengaluru’s Dominance and Competitive Pricing
The analysis of these figures revealed that 63% of the launches were in the upper-mid segment, which includes apartments priced between Rs 1 – 3 crore. This competitive pricing has contributed to the city’s success. Additionally, Bengaluru accounted for approximately 21% of the total residential launches and around 23% of the home sales in India during this three-month period. The success of Bengaluru’s real estate market can be attributed to various factors. Firstly, the sustained demand for property in the city is supported by the booming IT sector, infrastructure upgradation programs, and the overall conducive business environment. These factors have created a positive ambiance for investors and homebuyers.
Rapid Growth and Demand
In the first half-yearly period of 2024 alone, Bengaluru witnessed the launch of 29,153 units, which is nearly 60% of the highest-ever annual launches seen in the city in the year 2022. This shows the rapid growth and demand for residential properties in the city. Moreover, the premium segment projects priced between Rs 3-5 crore saw remarkable annual growth of over 200% when compared to the first half-yearly period of 2023. The increasing demand for these premium properties highlights the city’s investment potential and the willingness of buyers to invest in high-end real estate.
Key Micro Markets
The study also analyzed micro markets within Bengaluru, with Whitefield in East Bengaluru emerging as the dominant player. Around 47% of the fresh supply and 57% of the total sales during the June quarter were attributed to this micro market. Additionally, key contributions were also made by the Hosur Road and Bellary Road submarkets. The corridor connecting Whitefield to Kempegowda International Airport through Budigere Cross has attracted several reputed developers who announced projects between the ticket price range of Rs 1 -3 crore, according to Rahul Arora, senior managing director, Karnataka, Kerala, JLL India. This reinforces the importance of new infrastructure and Connectivity.
Price Surge and Reduced Unsold Inventory
During the first half of 2024, the average property prices in Bengaluru experienced an annual increase of nearly 15%. This surge in prices can be attributed to the launch of premium projects with higher rates. Moreover, quality launches are being sold off at a faster pace, particularly in the Whitefield and North Bengaluru markets. With the increase in sales, the unsold inventory in Bengaluru decreased by approximately 21% on a year-on-year basis. As of the first half of 2024, the total unsold inventory stood at 70,147 units. This drop in unsold inventory could be linked to around 31% of the launches in H1 2024 being sold out during the same period. The decreasing unsold inventory has also led to a decline in the “months to sell” figure for available inventory. It is anticipated that this figure will continue to decrease further in the near to medium term, driven by the expected momentum in the coming quarters.
Conclusion
Bengaluru’s real estate market has showcased exceptional performance in the residential sector, with high sales and launches. The city’s competitive pricing, booming IT sector, infrastructure development, and conducive business environment have contributed to its success. With the continuous growth of the market and reduced unsold inventory, Bengaluru’s real estate sector offers lucrative opportunities for investors and homebuyers alike. However, it is crucial for potential buyers to assess their budget, needs, and market trends before making an investment in the city’s thriving real estate sector.
