Bengaluru Leads Indian Real Estate in Q2 2024: Surge in Sales and Upper-Mid Segment Launches

Bengaluru’s real estate market showed strong performance in Q2 2024. JLL Research reports that 18,548 units were sold and 16,537 new homes were launched from April to June, reflecting significant activity in the housing sector. 

Dominance of Upper-Mid Segment Homes

A significant trend observed in the report is the dominance of the upper-mid segment in new property launches. Homes priced between ₹1 crore and ₹3 crore constituted a substantial 63% of the new launches during the quarter. This segment's popularity reflects a growing demand for quality living spaces in the city, driven by the influx of professionals and an expanding IT sector. The focus on this price range indicates a shift towards more premium offerings, catering to the city's affluent and aspirational buyers.

Bengaluru's Market Share and Growth

Bengaluru's contribution to the national real estate market was noteworthy, with the city accounting for approximately 21% of the total residential launches and around 23% of home sales across India in Q2 2024. This performance underscores Bengaluru's status as a key player in the Indian real estate landscape, driven by its thriving IT industry, ongoing infrastructure developments, and a favorable business environment. The city's growth trajectory is supported by its appeal as a prime destination for both investors and homebuyers.

Unit Launches and Sales

The first half of 2024 has been particularly remarkable for Bengaluru, with unit launches reaching approximately 60% of the highest annual launches recorded in 2022. The premium segment, which includes properties priced between ₹3 crore and ₹5 crore, saw a staggering annual growth of over 200% compared to the same period in 2023. This surge in premium launches reflects the increasing demand for high-end real estate in the city, driven by rising affluence and a growing population of high-net-worth individuals.

Micro Market Performance

A closer look at the micro market performance reveals that Whitefield in East Bengaluru continues to be a dominant force in the real estate sector. The area accounted for around 47% of the fresh supply and approximately 57% of total sales during the June quarter. Whitefield's strategic location and its proximity to key IT hubs have made it a preferred choice for both developers and buyers. Additionally, submarkets such as Hosur Road and Bellary Road have also contributed significantly to the city's real estate activity.

Rising Property Prices and Reduced Inventory

The report highlights a nearly 15% annual increase in the average property price in Bengaluru during the first half of 2024. This rise in prices is attributed to the launch of premium projects and the rapid sales of quality launches, particularly in Whitefield and North Bengaluru. As a result of this price surge, the city's unsold inventory decreased by approximately 21% year-on-year. The total unsold inventory stood at 70,147 units by the end of H1 2024. The reduction in unsold inventory is partly due to the high sales pace, with around 31% of the launches during H1 2024 being sold within the same period.

Future Outlook

Looking ahead, Bengaluru's real estate market is expected to maintain its momentum, with continued demand driven by the city's growing IT sector and infrastructure improvements. The anticipated decrease in the months required to sell existing inventory suggests a positive outlook for the market. Developers and investors are likely to continue focusing on high-demand segments and premium offerings to capitalize on the city's robust growth prospects.

Conclusion

Bengaluru's real estate market has demonstrated remarkable growth in Q2 2024, with significant activity in both sales and launches. The emphasis on upper-mid segment homes and the impressive performance of key micro markets underscore the city's role as a leading destination in India's real estate sector. As Bengaluru continues to evolve, its real estate market is poised to remain a focal point of activity and investment in the coming quarters.

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