Bengaluru's Residential Real Estate Soars to New Heights
Bengaluru's real estate market has seen a significant surge in prices, with average residential prices rising by 32% to INR 7,800/sq. ft. in H1 2024, driven by premium launches and post-COVID-19 demand.
Bengaluru Real EstateResidential PricesPremium LaunchesPost Covid 19 DemandAnarockReal Estate NewsJul 04, 2024
According to a report by ANAROCK, the city's average residential prices stood at INR 7,800 per sq. ft. by the end of H1 2024, a notable increase from INR 5,900 per sq. ft. at the end of H1 2023. Dr. Prashant Thakur, Regional Director & Head of Research at ANAROCK Group, highlighted the city's impressive year-over-year growth.
This sharp rise can be attributed to soaring construction costs and increased demand from both investors and buyers. Following a period of stagnation during the pandemic and subsequent structural reforms, the post-COVID-19 market has seen a significant uptick in demand, prompting developers to raise prices.
The premium and luxury segments have driven 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, although the dominance of the IT-ITeS sector has marginally decreased year-over-year.
Despite facing several urban challenges, Bengaluru is actively addressing these issues through various infrastructure projects. The city's real estate market is expected to continue its growth trajectory, with residential launches and sales projected to rise by 10-15% by the end of 2024 compared to 2023.
Information
ANAROCK is a leading real estate consultancy firm that provides expert advice and insights to buyers, sellers, and investors.
ANAROCK is a renowned real estate consultancy firm that offers comprehensive services, including research, advisory, and transaction services. With a strong presence in India, ANAROCK has established itself as a trusted partner for stakeholders in the real estate industry.
Frequently Asked Questions
What was the average residential price in Bengaluru in H1 2024?
The average residential price in Bengaluru in H1 2024 was INR 7,800 per sq. ft.
What drove the growth of Bengaluru's real estate market?
The growth of Bengaluru's real estate market was driven by premium launches and post-COVID-19 demand.
What is the expected growth rate of residential launches and sales in Bengaluru by the end of 2024?
Residential launches and sales in Bengaluru are expected to rise by 10-15% by the end of 2024 compared to 2023.
What is the current inventory overhang in Bengaluru?
The current inventory overhang in Bengaluru is at a record low of 8 months, down from 15 months in H2 2019.
What is the expected appreciation of average capital values in Bengaluru by the end of 2024?
Average capital values in Bengaluru are projected to witness a moderate appreciation of 10% by the end of 2024.
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