Bengaluru sees spike in housing prices, rentals; sales drop: Knight Frank

Karnataka capital Bengaluru, one of the most expensive real estate markets in India, saw a surge in housing prices and rentals but suffered a hit in sales.

Published on: Apr 5, 2023, 12:40:28 IST

By Yamini C S

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India's property market witnessed steady demand in the first three months of the year, with housing sales and office leasing increasing across eight cities, real estate consultant Knight Frank said in its 'India Real Estate' report, which was released on Monday.

Bengaluru was one of the three cities that saw the highest spike in rentals along with Hyderabad and Chennai. (HT file/For representation)

READ | Bengaluru ranks fourth among most expensive real estate markets in India: Report

Knight Frank assessed the real estate markets of eight prominent cities, namely, Bengaluru, Delhi NCR, Mumbai, Hyderabad, Chennai, Kolkata, Pune and Ahmedabad. The consultancy said all eight cities posted an year-on-year (yoy) growth in per square feet prices of residential properties during January - March this year.

Housing sales rose 1 per cent, while gross office space leasing grew by 5 per cent year-on-year across the eight cities, it added. Housing prices saw the most advancement in Karnataka capital Bengaluru, at 7 per cent, whereas Mumbai's housing prices grew by 6 per cent. Meanwhile, Hyderabad and Chennai's prices rose 5 per cent each in the first quarter of 2023.

READ | Bengaluru may see highest growth in office rent in APAC next year: Report

Bengaluru was also one of the three cities that saw the highest spike in rentals along with Hyderabad and Chennai, which was 5 per cent, while Pune and Mumbai saw a 4 per cent growth each. Bengaluru's office market stood steady with leasing of 3.5 million square feet, making it the most active market during Q1 of 2023. This transacted volume accounted for 31 per cent of the total area transacted during the period. However, Bengaluru's housing sales suffered a hit and dropped 2 per cent to 13,390 units.

“Sales grew the most in the Hyderabad market at 19 per cent year-on-year while sales in the larger markets of Mumbai and Bengaluru dropped 6 per cent and 2 per cent year-on-year,” the report said.

ABOUT THE AUTHOR
Yamini C S
Yamini CS is a Senior Content Producer at Hindustan Times with nearly six years of experience in digital journalism. She is part of the India News desk, where she works on a wide range of stories cutting across civic issues, city-based developments, politics, governance, public policy, breaking news, trending topics, and international affairs that have an impact on India. Her role involves tracking fast-moving developments, verifying information from official and on-ground sources, and presenting news in a clear, accessible format for a digital-first audience. A significant part of her work includes handling live blogs during major news events, such as elections, court verdicts, political developments, civic disruptions, protests, weather-related alerts, and unfolding national or international incidents. Through live coverage, she focuses on timely updates to help readers follow complex stories as they evolve. Before moving to the broader India News desk, Yamini was associated with the Bengaluru desk at Hindustan Times, where she extensively covered urban governance, infrastructure, traffic and transport issues, weather events, public grievances, and civic administration in the city. This experience strengthened her grounding in city reporting and sharpened her focus on citizen-centric journalism. She began her career as a correspondent with Reuters after completing a postgraduate diploma in journalism from the Indian Institute of Journalism and New Media. Her early training instilled a strong emphasis on accuracy, sourcing, and news ethics, which continue to shape her reporting style. Outside of work, Yamini enjoys reading across genres, listening to music, and spending time with her family, which help her maintain balance in a fast-paced newsroom environment.Read More

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