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Bengaluru’s real estate market can be characterised by a strong demand for mid to high-end properties. Housing prices in the city and across India’s seven major urban centres have increased by more than 50% since 2019. According to experts, high demand, limited availability, and rising construction expenses drive this price increase. This increase shows the market’s strength and significant developments in the sector. The price rises make it more difficult for property buyers to locate reasonable options.
According to recent research, Bengaluru is one of the top markets, with property values up by more than 50%. The Bagaluru neighbourhood had a 94% increase in house values, establishing it as a prime investment location. From 2019 to mid-2024, prices in Bagaluru increased from Rs 4,300 to Rs 8,151 per square foot. The addition of approximately 17,065 new residences drove this growth. Builders priced most homes between Rs 40 lakh and Rs 1.5 crore. Whitefield and Sarjapur Road followed quickly, with values jumping by 80% and 58%, respectively, establishing Bengaluru as a major investment hub.
While marketplaces like Bengaluru have sustained demand, analysts are concerned about unjustifiable price increases in other cities. High costs in some locations are affecting affordability, particularly among middle-class buyers. Rising home loan rates have also hit the lower-end market, slowing its development in recent years.
As prices rise, younger generations find it harder to afford property. “The new generation will find it very difficult to own an asset. They are not able to afford homes because of the increased prices. They also do not want to live in distant places. They want to live in the core Mumbai, core Bengaluru,” said Anand Moorthy, co-founder and Chief Business Officer of Capital Market and Services, Square Yards.
The third quarter of 2024 set a record, with 87,108 units sold across multiple markets, the most in a decade. Sales were particularly strong in the premium category, where most new supply is focused. New measures to assist affordable housing could increase affordability in the lower-income sector. These policies seek to cut interest rates, potentially increasing transactions in this area.
Strong demand for high-quality housing in Bengaluru fuels the expansion of neighbourhoods like Bagaluru, Whitefield, and Sarjapur Road. This need is because of the well-planned development, high-quality amenities, and solid connectivity that contributed to price increases. According to experts, Bengaluru’s attraction as a place to invest is expected to remain high. Both high-end and low-cost housing in the city are anticipated to continue to expand. This will attract investors and buyers seeking long-term value.
Read more through the links below to uncover the key trends and market leaders driving this growth:
Deccan Herald – https://bit.ly/3Z37cQw
Published Date: 11 Nov, 2024
