Bengaluru to see 10-15 pc rise in demand and sales of residential project: report
Jul 07, 2024
New Delhi [India], July 7 : The residential project launches and sales in Bengaluru are expected to rise by 10-15 per cent by 2024-end compared to 2023, the ANAROCK said in a recent report.
The report added that the average capital values are projected to witness a moderate appreciation of 10 per cent across the city, with prime locations and established tech corridors potentially experiencing steeper growth.
Recognising the growing demand in segments such as co-living spaces and eco-friendly homes, the report said that these are the emerging trends in the sector.
Anticipating the growth in the office segment, it added new office supply in the calendar year 2024, which may see a 4 per cent decline compared to 2023. The net office absorption can increase by 10 per cent. Average office space rentals are expected to witness a marginal rise of 1 per cent across the city, the report added.
In a comparison of the past five years, it observed that by the first half of 2024 end, the city's available stock stood at approximately 45,420 units compared to the same period of 2019, with a decline of 30 per cent at 64,680 units.
There has been robust new supply added in the city since 2019, the declining stock is a very positive sign. Moreover, inventory overhang in the city had fallen to a record low of 8 months by H1 2024-end, from 15 months in H2 2019.
The report also observed that soaring construction costs coupled with rising investor and buyer demand are pushing prices up, after a period of relative stagnation between the structural reforms period and the 2019 pandemic. With demand increasing significantly post-COVID-19 and construction costs heading north, developers have now begun hiking their prices.
Dr Prashant Thakur, Regional Director and Head of Research, ANAROCK Group, said, "Bengaluru also saw the highest Y-o-Y jump of 32 per cent--from Rs 5,900 sq. ft. by H1 2023-end to INR 7,800 per sq. ft. by H1 2024-end."
"Increased new launches in Bengaluru's premium and luxury segments in H1 2024 also contributed to the rise in average prices," says Dr Thakur.
Bengaluru saw approximately 32,5000 units being launched in the first half of 2024, up 30 per cent against the same period last year.
The premium segment dominates new launches in H1 2024 with a 39 per cent overall share in total residential assets share. The share of the luxury segment saw 36 per cent share.
