Bengaluru established its dominance in the country’s residential realty market in the quarter ended June, making up 23 per cent of sales and 21 per cent of the launches among India’s top seven cities. It has topped the supply scene for first time since Q3 of 2018, according to a report by the real estate and investment management company, JLL India (an arm of the UK-based MNC Jones Lang LaSalle Inc).
The report saw the southern metropolis clock 16,537 unit launches and 18,548 unit sales in this second quarter of the calendar year. The city is the highest contributor (23 per cent share) in both quarterly and half-yearly housing sales in India. In half-yearly sales, the city recorded 33 per cent YoY growth.
Bengaluru also saw its highest ever half yearly supply with about 18 per cent of pan India launches. A total of 29,153 unit launches in Bengaluru during H1 2024 (January to June) has recorded a 26 per cent year-on-year (YoY) growth. This quarter, new launches increased by about 45 per cent YoY.
In terms of unit sales for Q2 2024, the city saw around 36 per cent growth YoY with around one-fourth of Q2 sales being contributed by projects launched during the same quarter.
“Interestingly, around 25 per cent of Bengaluru’s H1 2024 sales were contributed by projects launched during the first six months of the year, signalling strong buyer confidence in such developments. Despite the sustained surge in launches, Bengaluru’s remarkable performance in sales has resulted in a sharp 40 per cent YoY decline in terms of months to sell, coming down from 23 months by end Q2 2023 to just 14 months at present,” said Samantak Das, Chief Economist and Head of Research and REIS, India at JLL.
Sustained demand and launches for property in Bengaluru is supported by the booming IT sector, infrastructure upgradation programmes and conducive business environment, according to JLL.
“Whitefield continues to hold its dominant position driven by its office sector expansion and recent extension of the Namma Metro network and led the Q2 city launches contributing a share of 47 per cent,” said Rahul Arora, Senior Managing Director, Karnataka, Kerala, JLL India.
Upper-mid segment on highest demand
In launches, upper-mid segment apartments (priced between Rs 1-3 crore) held a majority with 63 per cent share in quarterly launches, followed by the mid-segment apartments (Rs 50 lakh to 1 crore) with a 32 per cent share.
Similarly, the upper-mid segment held a dominant share with 47 per cent in H1 2024 sales.
Premium segment sees massive growth
On a half-yearly basis, it was the premium segment (priced between Rs 3-5 crore) launches that recorded a massive YoY growth of more than 200 per cent. This was largely driven by healthy launches by reputed developers, according to JLL. The premium segment also recorded a remarkable YoY growth in sales at around 175 per cent when compared to H1 2023.
Rising prices
In H1 2024, the average price in Bengaluru experienced a YoY increase of nearly 15 per cent. The surge in prices can be attributed to the launch of premium projects at higher rates and the faster pace at which quality launches are getting sold off in the city, particularly in Whitefield and North Bengaluru markets.
Decrease in unsold inventory
As of H1 2024, unsold inventory in Bengaluru decreased by 21per cent on a YoY basis as sales outpaced launches. Despite this, the total unsold inventory stood at 70,147 units by the end of H1 2024.