Bangalore records residential registrations of Rs 14,436 Cr in Q4 2023

March 2024: Bangalore’s residential market recorded 17730 transactions in Q4 2023, amounting to Rs 14,436 crore, according to a Square Yards Data Intelligence report for property registered by Inspector General of Registration (IGR), Karnataka.

The report stated that Bangalore-based Prestige Group ranked at the top in terms of units registered in this quarter, with 276 units, followed by developer Sobha Group, which recorded 218 transactions. In terms of sale value, L&T Realty stood at the top, recording collections of Rs 1004 crore from the proceeds. Phoenix Mills bagged the second spot in the list, capitalising on the growing demand for mid-segment and luxury homes, with Rs 307 crore worth of sales. Godrej Properties, Embassy Group and Birla Estates were other developers who had a great run in the October-December quarter.

Sopan Gupta, co-founder and sales director, Square Yards Bangalore “Bangalore’s residential market has been on song throughout 2023, with the demand mostly driven by millennials and young professionals. Rising disposable incomes, necessity for homeownership and the prudence of investing early, have led the young guns to dominate the real estate market. Besides, Bangalore’s thriving IT hub coupled with a vibrant cosmopolitan culture, beautiful weather, well-established metro network and profitable investment choices with both capital growth and rental income, has pulled homebuyers to this destination”.

L&T dominated the top projects category by sale value with its L&T Raintree Boulevard project collecting Rs 1019 crore whereas Birla Estates led in terms of transactions with 207 units registered. Phoenix Mills also stood out in terms of volume in this quarter, making the most of the surge in housing demand.

Data Source: IGR, Karnataka, squareyards.com

The report stated that Bangalore’s start-up boom and expanding economy have reshaped the city’s real estate market into a highly competitive market with a diverse range of options for potential buyers. South Bangalore with its strong social infrastructure, IT hubs such as Koramangala and strong connectivity through Sarjapur Road and Kanakpura Road, recorded the highest transactions at 5866. North Bangalore took the lead in terms of sale value with Rs 4564 crore worth of property sold. While both these micro-markets share similar investment potential due to their employment opportunities and superb livability index, the recent IT/ITes boom and SEZ development have propelled North Bangalore to the forefront of the investment race. The last quarter of 2023 also saw notable success in East and Central Bangalore. Krishnarajapura, JP Nagar, Whitefield, Electronic City, Sahakara Nagar emerged as top choices for prospective buyers in Bangalore.

In terms of ticket size comparisons, there is a clear inclination towards the affordable segment properties below Rs 50 lakh comprising 48% of the transactions. The trend aligns with the increase in property prices in Bangalore to the tune of 5% annually. Properties valued at Rs 50 lakh to 1 crore witnessed a slight Q-o-Q uptick in Q4 at 34%, underscoring the preference towards mid-segment homes with state-of-the-art amenities. Further, the luxury and ultra-luxury segment also grew from 15% in Q3 to 18% in Q4, indicating an increasing shift towards high-end properties. The demand for spacious homes was evident in this quarter where 1000-1500 sqft homes dominating the transactions, closely followed by 1500-3000 sqft.

Further, the report highlighted that in the past two years, the real estate landscape has undergone substantial advancement. Driven by key growth factors such as the robust presence of IT/tech hubs, a thriving modern housing sector, and top-notch infrastructure, the report said the city’s realty segment is poised for significant expansion.