Bengaluru sees 30% surge in home sales value; registers 28,000+ transactions in Q2 2024
Bengaluru’s real estate market has continued its upward trajectory with double-digit sequential growth in the second quarter of 2024. According to the latest report from Square Yards, Karnataka’s capital city registered a total of 28,356 transactions in the June quarter, marking an up of 19 per cent over the previous quarter.
The data also showed that the value of registered sales surged at an even faster rate of 30 per cent during the same period, reaching Rs 19,631 crore by the end of the June quarter.
Bengaluru Real Estate Market: Challenges
This year, the Bengaluru real estate market faced a lot of challenges including flooding and water shortages. However, despite these, the demand for homebuyers remains resilient due to increased employment opportunities. The ongoing infrastructure projects including the development of IT parks across the city, have further strengthened homebuyers’ sentiment in the city, leading to a rise in demand for both commercial and residential properties.
Bengaluru Real Estate Sector: Area and Budget-wise Trends
According to the Square Yards data, 62 percent of the transactions were for properties priced below Rs 50 lakhs, a significant 23 per cent were concentrated in the Rs 50 lakhs to Rs 1 crore range. “In terms of property size, homes ranging between 1,000 and 1,500 sq. ft. dominated the market, accounting for 48% of total transactions. This trend reflects a sustained preference for larger living spaces post-pandemic, driven by the adoption of hybrid working models by IT/ITes firms,” it added.
Bangalore Real Estate Market Outlook: Experts Speak
Commenting on the development, Mayank Ruia, Founder and CEO of MAIA Estates said, “Bengaluru’s 30 per cent jump in registered home sales value is a testament to the city’s growing appeal as a leading major metropolitan. This surge reflects the increasing demand for both premium and luxury homes, driven by the city’s robust infrastructure development, rich cultural diversity, pleasant climate, and evolving buyer preferences. With this growth, Bengaluru continues to assert itself as a hub for economic activity, further solidifying its status in the Indian real estate market.”
Pavan Kumar, Founder and CEO, of White Lotus Group, “Bengaluru’s registered home sales value has surged by 30 per cent, highlighting the city’s dynamic real estate market. This growth is fueled by strong economic conditions, a thriving IT sector, and a rising demand for homeownership. The increase in new launches, particularly in the premium and luxury segments, has significantly contributed to the rise in average prices, with nearly 75 per cent of new units in H1 2024 falling into these high-end categories while witnessing a Grade A absorption rate of 71 per cent, reflecting continued demand from IT parks and multinational corporations. As infrastructure upgrades continue and IT parks expand, Bengaluru’s residential market is expected to maintain its upward momentum, attracting more professionals and bolstering both commercial and residential demand.”
Pavan Kumar, Founder and CEO, of White Lotus Group, “Bengaluru’s registered home sales value has surged by 30 per cent, highlighting the city’s dynamic real estate market. This growth is fueled by strong economic conditions, a thriving IT sector, and a rising demand for homeownership. The increase in new launches, particularly in the premium and luxury segments, has significantly contributed to the rise in average prices, with nearly 75 per cent of new units in H1 2024 falling into these high-end categories while witnessing a Grade A absorption rate of 71 per cent, reflecting continued demand from IT parks and multinational corporations. As infrastructure upgrades continue and IT parks expand, Bengaluru’s residential market is expected to maintain its upward momentum, attracting more professionals and bolstering both commercial and residential demand.”
