Bengaluru’s Real Estate Rally Continues with ₹19,631 Crore in Home Sales in Q2 2024

Bengaluru’s real estate market has been on a remarkable upward trajectory, with the second quarter of 2024 marking a period of significant growth. Between April and June, the city saw homes worth a staggering ₹19,631 crore sold, according to data from Square Yards. This represents a 30% increase in value compared to the previous quarter and highlights the sustained demand for residential properties in one of India’s most vibrant metropolitan areas.

North Bengaluru Leads the Charge in Home Sales

The North Bengaluru region emerged as the most dynamic in the city, accounting for 35% of all home sales. This area has gained immense popularity due to its availability of large land parcels, proximity to Kempegowda International Airport, and major infrastructure projects. Key localities such as Hebbal, Yelahanka, and Bagaluru are witnessing rapid development, attracting both investors and end-users alike. North Bengaluru’s potential as a future real estate hub has been recognized for several years, and the second quarter of 2024 further solidified its position as a leading destination for homebuyers.

South Bengaluru Continues to Appeal to End-Users

Following North Bengaluru, the southern part of the city also performed well, capturing around 30% of the total transactions. Known for its established residential areas and proximity to key employment hubs, South Bengaluru continues to appeal to families and working professionals. Localities like Electronic City, Jayanagar, and JP Nagar remain popular choices due to their connectivity, availability of civic amenities, and thriving social infrastructure. The demand in this region is largely driven by end-users seeking a balanced lifestyle with access to quality education, healthcare, and entertainment options.

Price Appreciation in Key Localities

One of the most significant trends that stood out in this period was the price appreciation witnessed in several localities, particularly in North Bengaluru. Bagaluru, for instance, as per Anarock report saw a dramatic 90% increase in property values over the past five years. In 2019, the average property price in Bagaluru was around ₹4,300 per square foot, but by early 2024, this had surged to ₹8,151 per square foot. This sharp rise in prices is reflective of the broader real estate boom that Bengaluru has been experiencing, largely driven by infrastructure developments like the Bengaluru Suburban Railway Project and the expansion of the Outer Ring Road.

The IT Sector’s Influence on Real Estate Demand

One of the critical driver of this growth is the city's burgeoning IT sector. Bengaluru, often referred to as the "Silicon Valley of India," is home to numerous multinational corporations and technology firms. With the shift towards hybrid and remote work models, many IT professionals have been looking to upgrade their living spaces, either by moving into larger homes or relocating to suburban areas where they can find more affordable properties with better amenities. The demand for homes with dedicated workspaces, open areas, and recreational facilities has grown exponentially, particularly in the wake of the COVID-19 pandemic. Developers have been quick to respond to this shift in buyer preferences, offering homes that cater to the new normal of working from home.

Top Developers Contributing to the Growth

In terms of the developer landscape, Prestige Group emerged as the top performer in the city with 255 registered transactions during the April-June 2024 quarter. Godrej Properties followed closely with 126 transactions. However, when it comes to the highest sales value, Embassy Group took the lead with properties worth ₹391 crore being sold. These top developers have been instrumental in driving the city’s real estate growth, focusing on premium and mid-segment housing projects that appeal to both end-users and investors.

Land Acquisitions Fueling Future Development

Beyond residential property transactions, Bengaluru also recorded substantial activity in the land acquisition segment. As per Anarock report, a total of nine land deals were registered in the city during this period, covering an impressive 114.13 acres. This figure puts Bengaluru ahead of other major Indian cities in terms of land acquisitions. The demand for land, particularly in the city's northern and eastern outskirts, is being fueled by the growing interest in plotted developments and integrated townships. These types of projects offer homebuyers the flexibility to construct their homes according to their preferences while benefiting from the amenities provided by a larger gated community.

Addressing Challenges and Infrastructure Needs

Despite some challenges, including frequent flooding in certain parts of the city and concerns over water shortages, Bengaluru's real estate market has shown remarkable resilience. The city's government and urban planners are increasingly focusing on mitigating these issues through infrastructure upgrades and sustainable development initiatives. Projects aimed at improving drainage systems, water management, and public transportation are already underway, which are expected to further boost the attractiveness of the city's real estate market in the coming years.

Bengaluru’s Real Estate Boom Part of a Broader National Trend

In addition to the strong local demand, Bengaluru’s real estate boom is part of a broader trend observed in India’s leading tech cities. Alongside Hyderabad, Bengaluru has seen property prices appreciate by more than 80% over the past few years. This is a testament to the growing confidence of investors in these markets, as well as the overall economic growth of the regions. With continued demand from the IT sector, increased infrastructure investments, and a focus on sustainable urban planning, Bengaluru’s real estate sector is poised to maintain its growth momentum.

Way Forward

The April-June 2024 quarter underscored the resilience and strength of Bengaluru’s real estate market. With homes worth ₹19,631 crore sold, the city continues to attract both domestic and international buyers. As developers innovate to meet changing buyer preferences, and the city works on addressing its infrastructural challenges, Bengaluru is well-positioned to remain a hotspot for real estate investment in India.