IGI Logo

Bengaluru's residential market continues to display steady growth as registered transactions maintain upward momentum both sequentially and annually. According to data from Square Yards, a total of 28,356 transactions were recorded in the city during the second quarter of 2024, marking a 19% increase over the previous quarter. In a notable trend, the value of registered sales surged at an even faster rate of 30% during the same period, reaching Rs. 19,631 crores by the end of the June quarter. The upward momentum in Bengaluru's residential market is driven by shift towards premium properties leading to an increase in the average registered sales value, reaching Rs. 0.69 crore — a 9% rise compared to the previous quarter.

* Includes both primary and secondary residential registered transactions.

Sopan Gupta, Principal Partner, Square Yards said, “Bengaluru’s residential market remains northbound, continuing its upward trajectory with double-digit sequential growth in the June quarter. 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. 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 on-going 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 are likely to attract more working professionals, reinforcing both commercial and residential demand in Bengaluru.”

Market Leaders and Key Projects

Prestige Group maintained its lead in the Bengaluru residential market, recording the highest number of transactions with 255 units sold. According to their Q1 FY2025 report, the developer has 12 upcoming projects spanning a developable area of ~28 million sq. ft. in the city. Close behind was Godrej Properties, with 126 transactions, both developers seeing the majority of sales in North Bengaluru during the April-June 2024 period.

In terms of home sales value, Embassy Group and Prestige Group led the market, accounting for Rs. 391 crore and Rs. 264 crore, respectively, in the June quarter. Embassy Group’s Embassy Springs project in Devanahalli, a plotted residential development, amassed the highest transaction value. This highlights the sustained demand for plotted developments, particularly those designed as amenity-rich gated communities in Bengaluru.

* Includes primary residential registered transactions only.

* Includes primary residential registered transactions only.        

Area and Budget-wise Trends

While 62% of the transactions were for properties priced below Rs. 50 lakhs, a significant 23% were concentrated in the Rs. 50 lakhs to Rs. 1 crore range. In terms of 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.

Includes both primary and secondary residential registered transactions.

Micro Market Performance

A deeper analysis of Bengaluru's micro-market trends reveals that North Bengaluru continues to be the most active region, accounting for 35% of registered transactions in the June quarter. Sadahalli and Devanahalli emerged as key hotspots, with Sadahalli recording the highest sales value and Devanahalli leading in the number of residential transactions registered. The area's proximity to Kempegowda International Airport has fuelled increased demand, particularly for plot purchases.

South Bengaluru closely followed with a 30% share in overall transactions, with Electronic City and Jayanagar standing out as top localities. Notably, Jayanagar recorded the second-highest home sales value in Bengaluru, at Rs. 422 crore, trailing only Sadahalli.

Includes both primary and secondary residential registered transactions..

While northern and southern suburbs accounted for a bulk of residential transactions, key localities in East Bengaluru, such as Krishnarajapuram and Whitefield, continued to top the charts due to their proximity to commercial hubs. Despite challenges like floods and water shortages, these areas have shown resilience, maintaining steady demand. Central Bengaluru, with average home sales values surpassing Rs. 1.2 crore, remains the most expensive area in Bengaluru.

Insights from Square Yards indicate that Bengaluru is experiencing steady residential activity. The city's real estate trends align with national patterns, with branded developers and quality projects performing well. While eastern localities continue to attract interest due to their proximity to commercial hubs, the northern suburbs are gaining prominence thanks to their strategic location and connectivity to the airport. This region, with its available land parcels, is becoming a hotspot for developers investing in both apartment and plotted projects.

Upcoming infrastructure projects, including the Peripheral Ring Road (PRR), Bengaluru-Chennai Green Corridor, metro expansion, and a recently announced five-point program, are expected to alleviate infrastructure challenges and enhance the city’s liveability. Furthermore, as the BMRDA revitalizes its development plans, 89 new IT parks are set to be established across the city attracting more working professionals. All these facts are expected to positively impact the residential market and bolster homebuyer confidence in Bengaluru.

Above views are of the author and not of the website kindly read disclaimer