Bengaluru Reigns Supreme in India's Real Estate Market in Q2 2024
Bengaluru emerges as the top residential real estate market in India with 18,548 housing units sold and 16,537 homes launched during Q2 2024.
Bengaluru Real EstateHousing SalesProperty LaunchesIt SectorInfrastructure UpgradesBusiness ClimateJll ResearchJones Lang Lasalle IncorporatedReal EstateJul 26, 2024
The report highlighted that a dominant 63% of the launches fell in the upper-mid segment, consisting of apartments priced between ₹1-3 crore. Bengaluru accounted for approximately 21% of the total residential launches and around 23% of the home sales pan India during the three-month period.
The IT capital's sustained demand for property can be attributed to its booming IT sector, infrastructure upgradation programmes, and a conducive business environment. In fact, the unit launches in the first half-yearly period of 2024 have already reached approximately 60% of the highest ever annual launches seen in Bengaluru during 2022.
A micro market analysis 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 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. According to Rahul Arora, Senior Managing Director, Karnataka, Kerala, JLL India, this corridor has been a major draw for developers and homebuyers alike.
During the first half yearly period of 2024, the average property price in Bengaluru experienced an annual increase of nearly 15%. 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.
As of H1 2024, unsold inventory in Bengaluru decreased by approximately 21% on a year-on-year basis as sales outpaced launches. The total unsold inventory stood at 70,147 units by the end of the first half of 2024. 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.
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. This bodes well for the real estate market in Bengaluru, which is expected to continue its upward trajectory in the coming months.
Information
JLL (Jones Lang LaSalle Incorporated) is a leading professional services company that specializes in real estate and investment management.
JLL India is a subsidiary of JLL, providing comprehensive real estate services to corporate, investors, and homeowners in India.
Frequently Asked Questions
What was the number of housing units sold in Bengaluru during Q2 2024?
18,548 housing units were sold in Bengaluru during Q2 2024.
What was the dominant price segment for launches in Bengaluru during Q2 2024?
The dominant price segment for launches in Bengaluru during Q2 2024 was the upper-mid segment, consisting of apartments priced between ₹1-3 crore.
What contributed to the sustained demand for property in Bengaluru?
The sustained demand for property in Bengaluru can be attributed to the booming IT sector, infrastructure upgradation programmes, and a conducive business environment.
What was the percentage decline in unsold inventory in Bengaluru during H1 2024?
The unsold inventory in Bengaluru decreased by approximately 21% on a year-on-year basis as of H1 2024.
What is the expected trend for the real estate market in Bengaluru in the coming months?
The real estate market in Bengaluru is expected to continue its upward trajectory in the coming months, with anticipated momentum in the coming quarters.
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