Bengaluru’s housing sales register 4% growth in H1 2024; homes priced at ₹1 crore and above witness 76% annual growth

Bengaluru’s housing sales recovered ground in the April-June quarter to register a net positive growth of 4% during the first half of the year, according to a report by property consultancy Knight Frank India. Almost half of the overall sales during the half yearly period were in luxury housing segment.

Bengaluru’s housing sales recovered ground in Q2 2024 to register net positive growth of 4% in H1 2024 (Representational photo)(Bloomberg)
Bengaluru’s housing sales recovered ground in Q2 2024 to register net positive growth of 4% in H1 2024 (Representational photo)(Bloomberg)

In the January-March quarter, the garden city was the only major city in India to see a year-on-year fall in residential sales. Driven by a steep decline of over 68% in the affordable housing segment, home sales in Bengaluru fell 2% annually to 13,133 units in the first quarter of 2024.

However, at 27,404 units, overall residential sales in Bengaluru grew 4% year-on-year in the first half of 2024, compared to H1 2023, per the report.

Meanwhile, fresh supply during the January – June period of 2024 increased 9% annually to 25,567 units, as opposed to 23,542 units in the corresponding period last year, the report showed.

Also Read: Why are real estate developers making a beeline for Mumbai and Bengaluru markets?

According to the report, the positive shift in housing sales in Bengaluru was led by the premium segment, comprising homes priced at 1 crore and above, with a 76% annual growth during H1 2024 to 13,698 units. This category accounted for 50% of the overall sales during the half yearly period.

On the other hand, sales of houses priced below 50 lakh saw a significant decline, dropping by 63% compared to the first half of 2023 to constitute only 7% of the total sales during H1 2024, at 1,928 units. Simultaneously, the mid-segment ( 50 lakh – 1 crore) also saw a reduction in its share, falling from 50% to 43% at the end of H1 2024 at 11,778 units.

Bengaluru real estate market’s price dynamics

According to a report by property consultancy Anarock, Bengaluru also saw the highest annual jump in average residential prices at 32% – to 7,800 per sq ft by the end of H1 2024, from 5,900 sq ft by H1 2023-end.

In the last five years, average residential prices surged by 57% in the IT capital. “Average residential prices in the city stood at 7,800 per sq ft by H1 2024-end against 4,960 per sq ft at H1 2019-end,” said Prashant Thakur, regional director and head at Anarock Group.

The report cited increasing demand and rising construction cost post the Covid-19 pandemic for the trend.

Also Read: Mumbai watch out! Buyers are now lapping up over 10-crore luxury apartments in Bengaluru

Presently, North Bengaluru commands the highest average capital values of more than 7,000 per sq ft among the city’s four corners, the report noted.

As per the report, the average capital values are projected to witness a moderate appreciation of 10% across the city, by the end of 2024, with prime locations and established tech corridors potentially experiencing steeper growth.

Furthermore, segments such as co-living spaces and eco-friendly homes can play key roles in market expansion, it said.

Also read: Relocating from Noida to Bengaluru? Here are 5 things you should know before renting an apartment in the city

By the end of H1 2024, the city’s available residential inventory stood at approximately 45,420 units; marking a 30% five-year decline over approximately 64,680 units by H1 2019-end, Anarock said. Moreover, inventory overhang in the city fell to a record low of 8 months by H1 2024-end, from 15 months in H2 2019, the consultant added.

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