Bengaluru has cemented its position as India’s leading residential real estate market, recording the highest sales in the last financial quarter. Driven by a thriving IT industry, ongoing infrastructure developments, and a favorable business environment, the city has witnessed a remarkable surge in demand for residential properties.
A report by JLL Research’s Real Estate Intelligence Service (REIS) highlighted a 45% increase in new launches in Bengaluru, totaling 16,537 units. This growth is attributed to sustained demand supported by the robust IT sector and infrastructure upgrades. National and regional developers are increasingly attracted to Bengaluru, ensuring a steady flow of new projects. Whitefield, a key area in Bengaluru, accounted for 47% of these new launches. The area’s dominance is fueled by its expanding office sector and the recent extension of the Namma Metro.
The corridor connecting Whitefield to Kempegowda International Airport through Budigere Cross has drawn several reputed developers, with many projects priced between Rs 1 crore and Rs 3 crore. Hosur Road and Bellary Road also saw substantial activity. Upper-mid segment apartments, priced between Rs 1 crore and Rs 3 crore, dominated the market, comprising 62% of the total sales. The first half of the year alone saw about 25% of sales from newly launched projects, indicating strong buyer confidence.
The report also noted a noticeable decline in unsold inventory, further emphasizing the market’s healthy absorption rates. This trend suggests a robust demand and positive sentiment among buyers. Additionally, Anarock data from April 2024 revealed a steep rise in rental housing demand across major cities, with Bengaluru leading in rental yields at 4.45% in Q1 2024. This significant increase from the pre-COVID-19 yield of 3.6% reflects a 24% growth. The return-to-office trend among IT companies has driven rental values upwards in key areas, solidifying Bengaluru’s position as a top investment destination.
