Bengaluru property market trend – The popular choices of homebuyers decoded

The Bengaluru residential market is renowned for its resilience and its ability to recover from challenging circumstances, primarily due to its focus on end-users. The city’s strong IT/ITeS sector, favourable socioeconomic conditions, and pleasant climate contribute to the robust demand in the housing sector.

Over the past two decades, Bengaluru has experienced remarkable growth, attracting a significant population due to the abundance of employment opportunities across various industries. This influx has resulted in a rapid expansion of the residential sector, offering an array of attractive neighbourhoods to settle down or invest in.

Infrastructure and proximity to employment hubs drive demand

Bengaluru’s residential market has showcased remarkable growth, the sales in residential units during the past year being driven by the popularity of localities such as Varthur, Bagalur, Krishnarajapura, Whitefield, and Sarjapur Road.

These localities stood out due to their strategic locations, proximity to employment hubs, robust infrastructure, and a wide range of housing options.

However, sales in Q2 2023 experienced a downturn, witnessing a 19 percent year-on-year decline. This trend may have been influenced by the prevailing market conditions, economic uncertainties, and other external factors impacting buyer sentiment. Despite the challenging sales environment, certain micro-markets in Bengaluru showed resilience and recorded maximum traction in Q2 2023. Whitefield Hope Farm Junction, Varthur, Sarjapur, and Krishnarajapura were among the localities that attracted significant buyer interest during this period.

The period Q2 2023 also saw the INR 1 crore-plus price bracket dominate new supply, capturing a significant share of 34 per cent. The share of this price bracket has increased by a whooping 20 per cent from pre-pandemic period of Q2 2019. This trend indicates the city’s growing luxury segment, catering to discerning homebuyers seeking premium properties with modern amenities and high-end specifications.

Online searches reveal preferred locations

“The online search trends for homebuyers in Bengaluru in 2022 unveiled notable neighbourhoods attracting substantial interest. Topping the list was Whitefield, followed closely by Electronic City.”

Whitefield's popularity as a top searched locality comes as no surprise owing to its well-established infrastructure, proximity to major IT parks, and excellent connectivity to other parts of the city. Another prominent IT hub in Bengaluru, Electronic City ranked high on homebuyers' online searches. Its status as a technology centre, coupled with a variety of affordable and mid-segment housing options, has drawn significant interest from buyers. The search data also indicated strong interest in localities such as Krishnarajapura, JP Nagar, RR Nagar, Sarjapur Road, Bellandur, Horamavu, and Nagarbhavi.

2 BHK homes lead sales

In terms of unit configurations, 2BHK homes dominated the sales landscape, comprising 45 percent of total units sold in Q2 2023. Close behind were 3BHK units, accounting for 39 percent of the total sales. This indicates a preference for smaller and more affordable living spaces, ideal for young professionals and small families seeking practical and budget-friendly options.

Mid-segment housing sees highest preference

The INR 45 lakh - 75 lakh price bracket emerged as the most favoured range among buyers, making up 37 percent of the overall sales.

This bracket's popularity reflects the city's sensitivity to affordability and the demand for mid-range housing options. While the luxury segment witnessed growth in new supply, the majority of buyers in Bengaluru still gravitate towards homes in the mid-range pricing category. Having said that, the share of INR 1 crore and above price segment has increased to 26 per cent in Q2 2023, from 15 per cent during same period in 2019.

In conclusion, Bengaluru's real estate market continues to evolve amidst fluctuations, responding to changing buyer preferences and market dynamics. The city retaining its position as a tech and innovation hub, the real estate market is expected to strengthen, offering ample opportunities for buyers and investors alike. Thus, with its vast growth potential, Bengaluru continues to be a promising market in India's real estate landscape.

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