Bengaluru, the country’s IT capital, is the only real estate market that witnessed an 81% decline in sales of luxury housing units priced ₹4 crore and above in 2024, according to a report by CBRE.
The report said Bengaluru saw only 50 sales of luxury units (over ₹4 crore) in 2023, down from 265 units in 2023.
However, the top 7 cities witnessed a 53% annual sales growth from 12,895 units in 2023 to 19,700 units in 2024. Interestingly, Bengaluru stood out as the only city that continued to witness luxury housing sales dip compared to the first half of 2024.
According to the consultant, a mere 10 luxury residential units priced ₹4 crore and above were sold in Bengaluru during January-June 2024, compared to 200 units in the same period the previous year.
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Why is there a decline in luxury housing sales in Bengaluru?
Experts say the significantly low number of luxury housing unit launches in Bengaluru can be attributed to rising land and construction costs and a focus on catering to the growing mid-end and premium housing segments.
“However, the demand for luxury housing in Bengaluru remains resilient, driven by the city’s expanding base of high-net-worth individuals (HNIs), senior executives, and expatriates who seek exclusive, high-quality living spaces,” Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE told HT.com.
Local brokers say they see a reduction in luxury sales queries, too. “We saw at least a 20% dip in queries for luxury units compared to last year. This can also be attributed to a huge supply of luxury inventories. However, demand remains the same,” Kiran Kumar, vice president of Hanu Reddy Realty, said.
Kumar added that he is already marketing several luxury projects in the city. This includes villas upwards of ₹7 crore in north Bengaluru’s Devanahalli and multiple 4BHKs (1400 sq ft-1800 sq ft) in city centres like Koramangala and Indiranagar.
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Definition of a luxury apartment in Bengaluru
According to experts, luxury housing is generally defined by ticket sizes exceeding ₹4 crore, with prime localities such as Koramangala, Whitefield, Sadashivanagar, and North Bengaluru leading in launches.
These areas continue to attract buyers due to their excellent infrastructure, proximity to business districts, and premium lifestyle offerings. On the other hand, premium housing, typically ranging between ₹2 crore and ₹4 crore, is thriving in neighbourhoods like Indiranagar and JP Nagar in the south and select pockets along the Outer Ring Road, where buyers find the ideal balance of affordability and connectivity.
“It is important to acknowledge that ticket size definitions can vary based on factors such as land availability, unit sizes, and the location of micro-markets. Developers are leveraging these dynamics to create tailored offerings that resonate with the unique needs of Bengaluru’s diverse homebuyers while sustaining the city’s reputation as a thriving hub for luxury and premium residential developments,” Magazine added.
Local realtors add that they continue to see significant demand and increased queries for budget homes between ₹1-2.5 crore ticket sizes.
“It is also important to note that luxury housing in the city is also defined by the kind of amenities the projects provide. For example, in north Bengaluru, where land is available, the projects have large clubhouses and swimming pools. However, luxury units in the city centre are mostly smaller units with premium interiors and large parking spaces,” Kumar said.
