Bengaluru residential sales increase by 2% in 2024, demand for luxury housing up

In 2024, the city sold 55,362 units, compared to 54,046 units sold in the same period the previous year.

This led to Bengaluru experiencing a decade-high surge in new launches, with developers focusing on the city’s luxury and ultra-premium residential launches. In 2024, about 56,014 units were introduced, reflecting a 10% year-on-year growth and underscoring the robust influx of new projects in the market.

The highest growth in the Bengaluru residential sector was observed in the ticket size of ₹2-5 crore with annual growth of 91% YoY to 9,584 units during 2024 from 5,014 units in 2023.

Also Read: Housing sales across top eight cities touch 3.5 lakh-mark in 2024, Mumbai records highest sales: Knight Frank

South Bengaluru micro-market continues to dominate sales and launches in the city in 2024

South Bengaluru includes areas like Kanakapura Road, JP Nagar, Bannerghatta Road, and the Electronic City.

“The city’s strategic infrastructural developments, coupled with its dynamic economic profile, remain central to positive momentum in residential sales. As developers aligned supply with evolving buyers’ preferences, particularly for luxury and spacious homes, the market showcased its potential for sustained growth,” Shantanu Mazumder, Executive Director, Bengaluru, Knight Frank India, said.

He added that with the continued expansion of the metro network and ongoing enhancements to road and airport connectivity, Bengaluru’s residential market continues to demonstrate its vibrancy and growth potential.

Luxury housing drives demand in Bengaluru

Knight Frank said that among all the eight cities in the country, Bengaluru leads the residential sales for the ticket size segment of ₹1-2 crore. With sales of 19,744 units within this price segment, contributing to 22% of the overall sales of 90,814 units across the leading eight markets in the country. The segment also expanded its volume in the city by 45% YoY from 13,626 units in 2023 and contributed 36% of the overall sales in the city.

The highest growth in the Bengaluru residential sector was observed in the ticket size of ₹2-5 crore with annual growth of 91% YoY to 9,584 units during 2024 from 5,014 units in 2023.

The sales in higher ticket sizes of ₹5-10 crore grew by 58% YoY to 552 units, and ₹10-20 crore grew by 20% YoY to 89 units in 2024. About 5 units were sold in the ticket size segment of ₹20-50 crore

However, Knight Frank also added that the ₹50 lakh to ₹1 crore segment recorded sales of 21,000 units, with a 22% decline in its sales base of 26,836 units during 2023. The highest decline was observed in the ₹50 lakh or below segment, at 46%, from 8,141 units in 2023 to 4,388 units in 2024.

Also Read: Bengaluru Real Estate: Here’s why Kanakapura Road is likely to see major real estate appreciation in 2025

Developers focus on luxury launches in Bengaluru

Knight Frank India said the developers have responded to the demand for luxury projects by offering expansive layouts and premium amenities, which have received a positive response from homebuyers.

“The inventory spikes in these segments seem alarmingly high compared to the overall growth of inventory in the market, which is a marginal 1% YoY. However, one must look at the demand momentum in conjunction with inventory levels to arrive at a more prudent assessment of market health,” the report said.

The greater volume of units launched in the higher-priced categories has caused unsold inventories to rise by 38% YoY in the ₹1-2 crore segment, 122% YoY in the ₹5-10 crore segment, and by a steep 154% YoY in the units priced over ₹10-20 crore segment.

Why did the ₹2-5 crore housing segment significantly grow in 2024?

In cities like Bengaluru, experts say a significant migration from lower segments to higher ticket sizes occurs in terms of demand and supply.

This is evident from the surplus of unsold inventory at the end of 2024 in the ₹1-2 crore segment, which amounted to 9,092 units. This reflects a 38% increase year-over-year. In the ₹10-20 crore segment, there were 699 unsold units, representing a substantial 122% increase.

“With rising costs and moderate inflation, the financial burden of buying a house has spilt from ₹50 lahks to ₹1-1.5 crore segment. We now see more people comfortable buying properties worth ₹2-5 crore,” Vivek Rathi, head of research at Knight Frank, told HT.com.

People buying in this segment are primarily from corporates that prefer to invest for end-use purposes. A small fraction of this segment also includes NRIs who invest in homes worth ₹2-3 crore.

The majority of transactions were in areas like the eastern IT corridor of Whitefield and northern parts of Bengaluru, such as Hebbal and Yelahanka.

North Bengaluru becomes fastest growing real estate hub

The report added that North Bengaluru stands out as one of the fastest-growing residential clusters, recording significant increases in both launches and sales during H2 2024.

“The region’s development is underpinned by its strategic location near the Kempegowda International Airport and ongoing infrastructure projects such as the Blue Line metro. These developments are transforming areas like Hebbal, Devanahalli, and Bellary Road into vibrant residential and commercial hubs,” the report said.

In the north, residential prices in areas like Hebbal are around ₹6,300-13,000 per sq ft, up 10% YoY. Yelahanka recorded prices of ₹4,600-8,000 per sq ft, with 5% growth YoY. Thanisandra recorded ₹5,200-10,900 per sq ft, also surging 10% YoY.

This is comparable with the eastern IT corridor of Whitefield, with home prices of ₹6,000-11,000 per sq ft. It also surpasses south Bengaluru’s IT corridor of Electronic City, with prices of ₹5,000-7,500 per sq ft.

“The launch of premium villas, plotted developments, and apartments in this cluster has particularly resonated with high-income buyers seeking exclusivity and larger living spaces. Additionally, the establishment of new economic zones and business parks has reinforced the region’s appeal, making it a key driver of Bengaluru’s residential growth,” the report added.