According to Anarock data, Bangalore’s real estate market’s residential sector experienced a significant decline in sales.
During the third quarter of 2024, around 15,000 housing units were sold. This is an 8% fall compared to the second quarter of 2024 and the third quarter of 2023.
Bangalore’s Real Estate Shift in Trend: Rental Market
According to real estate brokers, the increase of apartment rentals in Bengaluru has slowed down between 5 and 10 percent.
Rentals in neighborhoods that are adjacent to prime locations have remained unchanged since the previous quarter.
According to market sources, over the course of the past three months, there has been a reduction of at least twenty percent in the number of inquiries regarding rental properties in the city.
This trend has been seen particularly in desirable neighborhoods such as Indiranagar and Koramangala.
According to market projections, a slowdown in Bangalore’s real estate sector is expected to result in a correction in rentals of up to fifteen percent during the next two to three months.
The deceleration follows a significant increase of close to 30–40 percent in the majority of regions over the course of the previous two years.
It has been studied by industry experts that the key reason for the stabilization of rental rates throughout the city is the imbalance between the demand and supply ratio.
As a result of the increased number of accessible inventories compared to the same time period a year earlier, prospective tenants have a significantly greater number of possibilities from which to select.
By the middle of the year 2023, the real estate market in Bengaluru had developed into a bustling auction house, and prospective renters were putting in intense bids for the flats of their choice.
A rental increase of between twenty and forty percent had occurred in prime IT (information technology) corridors as a result of the high demand.
The increase in the number of available rentals in the rental market was the cause of the price correction that began during the quarter that lasted from April to June of this year.
Sales Volume Decrease:
Data from ANAROCK indicates that the Bengaluru residential market had a significant decline in sales during the third quarter (Q3), concluding on September 30.
Data indicates that approximately 15,000 dwelling units were sold, reflecting an 8 percent decline between Q2 and Q3.
East Bengaluru, historically a leading player in the city’s residential sector, maintained a substantial position in Q3, with 48 percent of total sales.
On sales volume, this area did, however, show an 18 percent quarterly drop. North Bengaluru, with a 26% market share, likewise noted declining sales activity. Compared to last quarter, there was a 6 percent decline.
By contrast, South Bengaluru showed fortitude in the face of a 13 percent quarterly sales volume rise. Though with a 4% market share, West Bengaluru saw a significant 33% quarterly sales gain.
New Housing Launches in Bangalore’s Real Estate Market :
In Q3, Bengaluru accounted for 17% of new house launches in India’s top seven cities.
While the total rate of new residential supply in Bengaluru decreased by 1% from the previous quarter, the city saw a 7% increase in new launches year on year.
East Bengaluru remained the dominant zone, accounting for 35% of new launches. West Bengaluru, which had experienced modest activity in Q2, reported an increase in new launches, totaling around 1,000 units.
The Q3 market in Bengaluru was marked by a strong predilection for high-end residential homes. This segment grew 10% quarter on quarter and accounted for 54% of the city’s new launches.