Bengaluru’s Real Estate Market Sees Decline in 2024
The residential real estate market in Bengaluru, Karnataka, experienced an 8% decline in the July-September 2024 quarter compared to the previous year. According to a report by Square Yards, total registrations for residential units, including apartments and plots, reached 25,259 units. The sales value also dropped by 15% to Rs. 15,739 crore, down from Rs. 18,505 crore in the same period last year, with the average home sales value decreasing by 7% to Rs. 62 lakh.
Future Growth Prospects
Sopan Gupta, Principal Partner at Square Yards, remains optimistic about future growth. He noted increased homebuyer interest during the festive season and expects this demand to reflect in upcoming quarters. Interest is strong in both apartments and plots, particularly in the northern micro-market. Ongoing infrastructure developments, such as metro network expansion and tech-infrastructure, along with increased office space uptake by global tech companies, are expected to positively impact Bengaluru’s residential market.
Market Trends and Preferences
Most property transactions (86%) in Bengaluru this quarter were below Rs. 1 crore, with 8% in the Rs. 1-2 crore range. Apartment units between 1,000 to 1,500 sq. ft. accounted for nearly half of all transactions, reflecting a preference for larger spaces due to hybrid work trends among IT/ITes professionals.
Regional Insights
North Bengaluru led with a 40% share of registered transactions, driven by its proximity to Kempegowda International Airport and demand for plots in areas like Chikkasanne and Chikkasandra. South Bengaluru followed with a 25% share, with Jayanagar and Electronic City as key hotspots. Jayanagar recorded the highest home sales value at Rs. 469 crore, while Krishnarajapuram led in transaction volume with 192 units sold. The central region remains the most expensive, with an average home sales value of Rs. 1.35 crore, while eastern Bengaluru averaged Rs. 67 lakh. Western Bengaluru offers more affordable options, with average transaction values around Rs. 44 lakh.
Doubts Revealed
Bengaluru -: Bengaluru is a big city in India, known for its technology companies and pleasant weather. It’s often called the ‘Silicon Valley of India’ because many tech companies are based there.
Real Estate Market -: The real estate market refers to buying, selling, and renting properties like houses and apartments. It’s like a big marketplace where people trade homes and buildings.
Square Yards -: Square Yards is a company that helps people buy, sell, and rent properties. They provide information and services related to real estate.
Units Registered -: Units registered means the number of homes or apartments that were officially recorded as sold or bought during a specific time.
Sales Value -: Sales value is the total amount of money made from selling homes or properties. It’s like the total price of all the houses sold.
Rs. 15,739 crore -: Rs. 15,739 crore is a way to express a large amount of money in Indian currency, Rupees. One crore is equal to ten million, so this is a very big number.
Average Home Sales Value -: Average home sales value is the typical price at which homes are sold. It’s like finding the middle price of all the homes sold.
Sopan Gupta -: Sopan Gupta is a person who works at Square Yards and shares his thoughts about the real estate market. He is optimistic, meaning he believes things will get better.
Infrastructure Developments -: Infrastructure developments are improvements or new constructions like roads, bridges, and buildings that help a city function better.
North Bengaluru -: North Bengaluru is a part of the city that is seeing a lot of real estate activity, meaning many people are buying and selling homes there.
Jayanagar and Krishnarajapuram -: Jayanagar and Krishnarajapuram are areas in Bengaluru where many real estate transactions are happening. They are popular places for buying homes.
Central Region -: The central region of Bengaluru is the middle part of the city, which is usually more expensive because it’s close to important places and facilities.
Western Bengaluru -: Western Bengaluru is a part of the city where homes are generally more affordable, meaning they cost less compared to other areas.