Bengaluru has emerged as the leading residential real estate market in India, recording the highest sales in the last financial quarter. According to a report by JLL Research’s Real Estate Intelligence Service (REIS), the city witnessed the sale of 18,550 units. This significant performance underscores the city’s prominence in the real estate sector, driven by its thriving IT industry, ongoing infrastructure developments, and a favourable business environment.
The report highlighted a remarkable 45% increase in new launches, amounting to 16,537 units. A JLL India spokesperson attributed this growth 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 each quarter. Whitefield, a key area in Bengaluru, accounted for 47% of these new launches. The area’s dominance is fuelled 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. Spokesperson of JLL noted a noticeable decline in unsold inventory, further emphasising 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 is a significant increase from the pre-COVID-19 yield of 3.6%, reflecting 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.
