Bengaluru's Housing Market Sees a Dip in Sales, But Optimism Remains for Festive Recovery

Bengaluru, often referred to as the Silicon Valley of India, recently experienced a slight cool-off in its buzzing residential real estate market. The July-September 2024 quarter brought a mix of challenges and opportunities as the city adjusted to shifting dynamics after a period of rapid growth.

A Subtle Decline in Numbers

During this quarter, Bengaluru registered 25,259 residential units, including apartments and plots, with the Inspector General of Registration (IGR). The total sales value was recorded at ₹15,739 crore, marking a 15% year-on-year decline from the same period in 2023. The number of residential units sold also saw an 8% decrease, reflecting a slight moderation in market momentum.

The average home price fell to₹62 lakh, a 7% drop compared to last year. However, industry experts see this dip as a natural recalibration after a period of intense growth. According to Sopan Gupta, Principal Partner at Square Yards, the current slowdown might just be the calm before the storm. “As we step into the festive season, demand is expected to rebound, supported by end-users and investors alike. The ongoing infrastructure developments, like the metro network expansion and office space uptake, continue to fuel long-term growth prospects,” he remarked.

Affordable Housing Takes Center Stage

One of the most striking trends this quarter was the overwhelming demand for affordable housing. A staggering 86% of transactions fell under the ₹1 crore price bracket, with 8% in the ₹1-2 crore range. Properties priced below ₹50 lakh remain highly popular among middle-class buyers, reinforcing Bengaluru's reputation as a city that caters to diverse budgets.

Moreover, larger homes in the 1,000 to 1,500 sq. ft. range dominated sales, making up 47% of total registrations. This trend reflects the evolving preferences of homebuyers, especially with hybrid work models influencing the need for spacious living.

Top Developers and Projects

Developers like Artha Property and Tata Realty emerged as key players during the quarter. Artha’s Emprasa Startup City in Hoskote recorded the highest number of transactions, followed closely by Tata Realty’s Tata New Haven. Other significant contributors included Birla Estates, Godrej Properties, and Casagrand, which maintained robust sales volumes across the city.

Regional Performance: A Tale of Two Halves

Bengaluru’s micro-markets showcased contrasting dynamics. The northern part of the city remained a hotbed of activity, accounting for 40% of all transactions. Localities like Chikkasanne and Chikkasandra stood out, driven by their proximity to Kempegowda International Airport and the growing demand for residential plots.

In South Bengaluru, areas like Jayanagar and Electronic City saw significant traction. Jayanagar recorded the highest home sales value at ₹469 crore, while Krishnarajapuram led in transaction volume with 192 units sold. The southern belt continues to benefit from a mix of modern amenities and established infrastructure, making it a preferred choice for families and professionals alike.

The Road Ahead

As Bengaluru gears up for the festive season, optimism is high. Developers are focusing on creating larger, more spacious homes, catering to the rising demand for quality living spaces. With new registrations and sales expected to pick up, the market is poised for a strong recovery.

A City of Resilience

Bengaluru’s real estate market reflects its enduring spirit—adapting, evolving, and thriving despite challenges. Whether it’s the middle-class buyer looking for affordable options or investors eyeing high-value properties, the city continues to offer something for everyone.