Bengaluru's Residential Real Estate Boom: Prices Skyrocket by 32% in Just One Year
Bengaluru's residential real estate market is on fire, with prices surging by 32% in just one year, driven by premium launches and post-COVID-19 demand.
BengaluruReal EstateResidential MarketAnarockPremium LaunchesPost Covid 19 DemandReal EstateJul 04, 2024
As of H1 2024, average residential prices in Bengaluru stood at INR 7,800 per sq. ft., a marked increase from INR 5,900 per sq. ft. at the end of H1 2023. This sharp rise can be attributed to soaring construction costs and increased demand from both investors and buyers.
The premium and luxury segments have been driving growth, with new launches in these segments accounting for 75% of the total new supply of approximately 32,500 units in H1 2024. The city's inventory overhang has also fallen to a record low of 8 months, down from 15 months in H2 2019.
Bengaluru's office space demand has also been on an upward trajectory since 2020, recently reaching an all-time high. The city's thriving business environment continues to attract significant interest, with coworking space providers and manufacturing/industrial occupiers expanding their presence.
Despite facing several urban challenges, Bengaluru is actively addressing these issues through various infrastructure projects. Looking ahead, the ANAROCK report expects residential launches and sales in Bengaluru to rise by 10-15% by the end of 2024 compared to 2023. Average capital values are projected to witness a moderate appreciation of 10%, with prime locations and established tech corridors potentially experiencing steeper growth.
Information
ANAROCK is a leading real estate services company that provides end-to-end solutions for all real estate requirements.
ANAROCK Group is a leading real estate services company that provides end-to-end solutions for all real estate requirements. With a strong presence in India, ANAROCK has established itself as a trusted advisor to many leading developers, investors, and occupiers of real estate.
Keywords Bengaluru, real estate, residential market, ANAROCK, premium launches, post-COVID-19 demand, inventory overhang, office space demand, infrastructure projects
Frequently Asked Questions
What is the current average residential price in Bengaluru?
As of H1 2024, the average residential price in Bengaluru stands at INR 7,800 per sq. ft.
What is driving the growth of Bengaluru's residential real estate market?
The growth of Bengaluru's residential real estate market is driven by premium launches and post-COVID-19 demand, as well as soaring construction costs.
What is the current inventory overhang in Bengaluru?
As of H1 2024, the inventory overhang in Bengaluru has fallen to a record low of 8 months.
What is the expected growth of residential launches and sales in Bengaluru by the end of 2024?
The ANAROCK report expects residential launches and sales in Bengaluru to rise by 10-15% by the end of 2024 compared to 2023.
What is the expected growth of average capital values in Bengaluru by the end of 2024?
The ANAROCK report expects average capital values in Bengaluru to witness a moderate appreciation of 10% by the end of 2024, with prime locations and established tech corridors potentially experiencing steeper growth.
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