Bengaluru has emerged as the premier residential real estate market in India with 18,548 housing units sold and 16,537 homes launched during the April-June period of the ongoing calendar year, according to JLL Research. A dominant 63% of the launches fell in the upper-mid segment, consisting of apartments priced between ₹1 – 3 crore, the analysis showed.
The IT capital accounted for approximately 21% of the total residential launches and around 23% of the home sales pan India during the three-month period, it showed. The study credited sustained demand for property in Bengaluru supported by the booming IT sector, infrastructure upgradation programmes and a conducive business environment for the feat.
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Incidentally, the unit launches in the first half-yearly period of (29,153 units) have already reached approximately 60% of the highest ever annual launches seen in Bengaluru during the year 2022, the note highlighted. During the period, the premium segment launches (priced between ₹3-5 crore) recorded a remarkable annual growth of over 200% when compared to H1 2023, it said.
Micro market performance
A micro market analysis in the study revealed that Whitefield in East Bengaluru held tight on its dominant position, accounting for approximately 47% of the fresh supply and around 57% of the total sales during the June quarter. Simultaneously, Hosur Road and Bellary Road submarkets also made significant contributions, the study showed.
“The corridor connecting Whitefield to Kempegowda International Airport through Budigere Cross has attracted several reputed developers who have announced projects largely within a ticket price range of ₹1 -3 crore,” said Rahul Arora, senior managing director, Karnataka, Kerala, JLL India.
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Property prices and unsold inventory
During the first half yearly period of 2024, the average property price in Bengaluru experienced an annual increase of nearly 15%, per the study. The surge in prices can be attributed to the launch of premium projects at higher rates and the faster pace at which quality launches are getting sold off in the city, particularly in Whitefield and North Bengaluru markets, it stated.
As of H1 2024, unsold inventory in Bengaluru decreased by approximately 21% on a year-on-year basis as sales outpaced launches, the note stated. The total unsold inventory stood at 70,147 units by the end of the first half of 2024.
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One of the factors contributing to this drop in unsold inventory can be approximately 31% of the H1 2024 launches being sold out during the same period, the note pointed out. With anticipated momentum in the coming quarters, the months to sell for the available inventory are likely to decline further in the near to medium term, it added.
