Introduction
Bengaluru’s Strong Residential Market Performance
Bengaluru has solidified its position as India’s leading residential real estate market, with a remarkable 18,550 units sold in the last financial quarter, according to a report by JLL Research. The city also witnessed a surge in new launches, with 16,537 units entering the market, marking a 45 per cent increase compared to the previous year.
Factors Driving Bengaluru’s Real Estate Growth
Several factors contribute to Bengaluru’s thriving real estate market:
- Thriving IT Sector: The city’s robust IT industry continues to attract professionals, driving demand for housing.
- Infrastructure Development: Ongoing infrastructure upgrades, including metro expansion, enhance connectivity and livability.
- Conducive Business Environment: Bengaluru’s reputation as a business-friendly city attracts investors and developers.
Whitefield Dominates New Launches
Whitefield emerged as the top location for new launches, accounting for 47 per cent of the total. The corridor connecting Whitefield to Kempegowda International Airport through Budigere Cross also witnessed significant developer interest, with projects primarily targeting the Rs one crore to Rs three crore price range.
Strong Buyer Confidence and Inventory Reduction
The report highlights strong buyer confidence, with 25 per cent of sales attributed to projects launched within the first six months of the year. This positive sentiment has contributed to a 21 per cent year-on-year decline in unsold inventory.
Upper-Mid Segment Leads the Market
The upper-mid segment (Rs one crore to Rs three crore) dominated both launches and sales, accounting for 62 per cent and 47 per cent respectively. However, the premium segment (Rs three crore to Rs five crore) also witnessed impressive growth, with over 200 per cent increase in launches compared to the previous year.
Rental Yields on the Rise
Bengaluru’s rental market is equally robust, with rental yields increasing significantly post-pandemic. The city’s rental yield now stands at 4.45 per cent, a 24 per cent growth compared to pre-Covid levels.
Overall, Bengaluru’s real estate market is experiencing a period of sustained growth, driven by strong fundamentals and positive market sentiment. The city’s appeal as a residential destination continues to attract both homebuyers and investors.