Bangalore Real Estate experienced a double-digit surge in the second quarter of 2024.
According to the most recent Square Yards data, the capital city of Karnataka experienced a 19% increase from the previous quarter, with a total of 28,356 transactions in the June quarter.
The data also revealed that the value of registered sales increased at an even quicker pace of 30% during the same period, hitting Rs 19,631 crore at the end of the June quarter.
The obstacles faced by Bangalore Real Estate:
The Bangalore real estate market encountered numerous obstacles this year, such as water shortages and inundation.
Nevertheless, the demand for homebuyers remains resolute due to the heightened employment prospects the city offers.
The ongoing infrastructure projects have further bolstered the sentiments of Bangalore real estate entities.
Burgeoning IT parks throughout the city has increased demand for both commercial and residential properties.
Bangalore Real Estate Sector: Trends by Budget and Area
The Square Yards statistics show that 62% of the sales were for homes less than Rs 50 lakhs, a notable 23% fall in the Rs 50 lakhs to Rs 1 crore category.
Based on property size, residences between 1,000 and 1,500 sq. ft. dominated the market and accounted for 48% of all transactions.
Driven by the acceptance of hybrid working arrangements by IT/IT-enabled service companies, this trend shows a continuous inclination for bigger living areas post-pandemic, as per Square Yards data.
The Localities showing surge in demand & Price Appreciation:
Areas like Bagaluru and Hennur are witnessing demand as consumers and investors move northward more and more.
Furthermore seeing significant price rises are Whitefield and Varthur-Sarjapur.
This price increase can be linked to the pent-up demand that has resulted from a pandemic, with more than 94% of the new supply being concentrated in the premium and middle-market groups.
There was a significant increase in costs in locations with high demand, such as Whitefield, Varthur–Sarjapur, and areas of North Bengaluru, among other places.
The most substantial price appreciation has occurred in Bagaluru, which is located in North Bengaluru, according to research that was recently published by ANAROCK, a real estate consultancy firm.
Sarjapur Road recorded a 58 percent jump in prices with a new supply of approximately 36,150 units, of which 74 percent was in the mid and premium segments and 18 percent in the luxury category.
The average price of a square foot in Sarjapur Road increased from ₹5,870 in 2019 to ₹9,300 in the first half of 2024.
During the first half of 2024, in Whitefield, the average prices surged from ₹5,870 per square foot in 2019 to ₹9,300 per square foot from the previous year.
However, the rising price trend has not affected sales due to stable interest rates and a thriving economy.
Bangalore Real Estate: Affordability Challenges
Rising housing prices are affecting affordability, especially for first-time buyers.
Whitefield launched 18,600 units this year, but none were affordable. Only 8% of 36,150 new Sarjapur flats were affordable.
Sources in Bangalore real estate have shared their views, First-time buyers may choose smaller residences or properties distant from the city center for lower prices.
Residential rental prices in Bangalore have increased by approximately 5–8 percent within the last year.
The primary factor propelling this upward trend is the growing demand for rental properties, particularly in highly desirable locations that are nearby amenities and workplaces.
Furthermore, real estate sources indicate that the increasing expenses associated with homeownership are encouraging an increasing number of individuals to opt for renting as a more viable alternative.
In conclusion, the Bangalore real estate market is anticipated to remain solid, with the city’s burgeoning IT sector and ongoing infrastructural projects, including the metro development, providing support.
The city is showing significant growth of residential and commercial spaces.
Looking for properties for sale in Bangalore? look no further, check out Roofandfloor!
For more real estate-related stories, visit our Realty Guide