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Bengaluru homebuyers struggle with affordability crisis as mid-end housing launches fall by 29%, says NoBroker report
New homebuyers have limited options for properties priced ₹90 lakh-1 crore, pushing them towards suburbs or the resale market, the NoBroker report said
As real estate developers increasingly focus on high-margin luxury projects, budget-conscious buyers face growing challenges to homeownership. The launch of mid-end housing projects, with properties priced between ₹40 lakh and ₹80 lakh, in Bengaluru dropped by 29% in 2024, according to a report by NoBroker.
This decline reflects the shrinking affordability in the market, driven by a lack of budget-friendly options. Consequently, entry-level buyers are left with fewer choices, potentially pushing them towards suburban areas or the resale market in search of more affordable alternatives, it said.
In 2023, Bengaluru saw 15179 new launches in the mid-end segment, with a 29% share of the total launches, which dropped to 14876 in 2024, comprising 22% of the share, data from NoBroker showed.
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"However, a major chunk of demand lies in this segment, about 38-40% share of the total demand in Bengaluru for people looking forward to buying an apartment," Saurabh Garg, chief business officer oof NoBroker told HT.com.
As a result, the report added that the supply of luxury resale units doubled, driven by strong demand for upscale properties and sellers benefiting from better ROI and higher pricing opportunities. Additionally, properties within gated communities are appreciating faster than those in standalone buildings, highlighting the desirability of integrated, secure environments, it said.
Developers favoured luxury properties in 2024
The report added that new launches in the luxury segment—properties priced above ₹1.5 crore—expanded significantly, increasing from 29% in 2023 to 34% in 2024.
Data from NoBroker showed that in 2024, Bengaluru saw 23073 units of new launches in the luxury segment, compared to 15071 in 2023.
"This trend highlights the changing dynamics of Bengaluru’s housing market, where high-end real estate continues to dominate, leaving middle-class buyers with fewer choices. Rising land prices, increasing construction costs, and the promise of higher profit margins are pushing developers to focus on affluent buyers who prioritize premium amenities and spacious homes," the report added.
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North Bengaluru leads as the fastest-growing real estate hub
North Bengaluru emerged as Bengaluru’s fastest-growing real estate hub, with areas like Devanahalli, Yelahanka, KIADB Aerospace Park, Hennur Road, and Thanisandra witnessing a surge in new developments.
According to the report, the region’s share of new housing launches climbed to approximately 33% in 2024, up from 23% in 2023. This growth is largely driven by its proximity to the international airport and the anticipated development of major tech parks and industrial clusters, positioning North Bengaluru as a prime destination for homebuyers and investors.
"Meanwhile, East Bengaluru, a well-established IT and startup hub, witnessed strong but steady new project launches. The area continued to see consistent new supply, supported by its concentration of major tech parks, leading IT firms, and a thriving commercial ecosystem," the report said.
