Demand for premium property pushes Bengaluru's home sales value up by 30%

Bengaluru: Bengaluru’s registered home sales value surged at a rate of 30% during the second quarter (Q2) of 2024 over the previous quarter, reaching Rs 19,631 crores by the end of June, according to data put out by integrated real estate prop-tech marketplace Square Yards, on Friday.

The city marked a 19 per cent increase in registered residential transactions (or number of units) during the same period, recording a total of 28,356 transactions.

Prestige Group maintained its lead in the Bengaluru residential market, recording the highest number of transactions with 255 units sold in the April to June 2024 period. Following was Godrej Properties with 126 transactions.

In terms of home sales value in April-June 2024, Embassy Group topped the list of developers at Rs 391 crore, followed by Prestige Group at Rs 264 crore.

The upward momentum in Bengaluru's residential market is driven by a shift towards premium properties leading to an increase in the average registered sales value which reached Rs 69 lakh. This was a 9 per cent rise compared to the previous quarter.

Sopan Gupta, Principal Partner, Square Yards said, “Despite challenges such as flooding and water shortages, homebuyer demand remains notably resilient, underpinned by a strengthening IT sector and the blend of full-time and hybrid working models.”

While 62 per cent of the transactions were for properties priced below Rs 50 lakhs, 23 per cent were concentrated in the Rs 50 lakhs to Rs 1 crore range.

In terms of property size, large homes ranging between 1,000 and 1,500 square feet (sf) dominated the market, accounting for 48 per cent of total transactions.

North Bengaluru continued to be the most active region, accounting for 35% of registered transactions in the April-June quarter with 9,871 units sold. Sadahalli recorded the highest sales value and Devanahalli led in the number of residential transactions registered. The area's proximity to Kempegowda International Airport fuelled increased demand.

South Bengaluru closely followed with a 30 per cent share in overall transactions (8,556 units sold).

Central Bengaluru, with average home sales values at Rs 1.24 crore, remains the most expensive area in Bengaluru.