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Bengaluru’s housing sales register 4% growth in H1 2024; homes priced at ₹1 crore and above witness 76% annual growth
Bengaluru’s residential sales recovered ground in Q2 2024 to record a net positive growth of 4% during H1 2024; luxury segment drives housing sales
Bengaluru’s housing sales recovered ground in the April-June quarter to register a net positive growth of 4% during the first half of the year, according to a report by property consultancy Knight Frank India. Almost half of the overall sales during the half yearly period were in luxury housing segment.
In the January-March quarter, the garden city was the only major city in India to see a year-on-year fall in residential sales. Driven by a steep decline of over 68% in the affordable housing segment, home sales in Bengaluru fell 2% annually to 13,133 units in the first quarter of 2024.
However, at 27,404 units, overall residential sales in Bengaluru grew 4% year-on-year in the first half of 2024, compared to H1 2023, per the report.
Meanwhile, fresh supply during the January - June period of 2024 increased 9% annually to 25,567 units, as opposed to 23,542 units in the corresponding period last year, the report showed.
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According to the report, the positive shift in housing sales in Bengaluru was led by the premium segment, comprising homes priced at ₹1 crore and above, with a 76% annual growth during H1 2024 to 13,698 units. This category accounted for 50% of the overall sales during the half yearly period.
On the other hand, sales of houses priced below ₹50 lakh saw a significant decline, dropping by 63% compared to the first half of 2023 to constitute only 7% of the total sales during H1 2024, at 1,928 units. Simultaneously, the mid-segment ( ₹50 lakh - ₹1 crore) also saw a reduction in its share, falling from 50% to 43% at the end of H1 2024 at 11,778 units.
Bengaluru real estate market’s price dynamics
According to a report by property consultancy Anarock, Bengaluru also saw the highest annual jump in average residential prices at 32% – to ₹7,800 per sq ft by the end of H1 2024, from ₹5,900 sq ft by H1 2023-end.
In the last five years, average residential prices surged by 57% in the IT capital. "Average residential prices in the city stood at ₹7,800 per sq ft by H1 2024-end against ₹4,960 per sq ft at H1 2019-end," said Prashant Thakur, regional director and head at Anarock Group.
The report cited increasing demand and rising construction cost post the Covid-19 pandemic for the trend.
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Presently, North Bengaluru commands the highest average capital values of more than ₹7,000 per sq ft among the city's four corners, the report noted.
As per the report, the average capital values are projected to witness a moderate appreciation of 10% across the city, by the end of 2024, with prime locations and established tech corridors potentially experiencing steeper growth.
Furthermore, segments such as co-living spaces and eco-friendly homes can play key roles in market expansion, it said.
By the end of H1 2024, the city’s available residential inventory stood at approximately 45,420 units; marking a 30% five-year decline over approximately 64,680 units by H1 2019-end, Anarock said. Moreover, inventory overhang in the city fell to a record low of 8 months by H1 2024-end, from 15 months in H2 2019, the consultant added.
