Bangalore Luxury Housing Sales Fall Amid Real Estate Boost

The real estate market in India has rapid growth in both the retail and housing sectors. A recent report indicates that sales of luxury housing units have increased by 27% from last year. Its price ranges from Rs 40 million and above.

The India Market Monitor Q2, 2024 report by CBRE South Asia concluded that there was a total sale of 156,000 housing units. It also includes over 153,000 new launch units in all ranges. Bangalore, Mumbai, and Pune together have an impressive 63% share of the total housing sales of the nation during the first half of 2024.

Despite the strength of the market, the luxury housing segment in Bangalore performed less when compared to the previous year. At the same time, the city saw 200 luxury sales in Q2 of the previous year, only 10 units for this year. Anshuman Magazine, Chairman & CEO- India at CBRE, expressed positive notes about the future of these markets. The report pointed out a shift in investment towards mid-segment housing within the city.

The report predicts a strong rate for the rest of the year. It is due to positive home-buying, promotions, and significant land acquisitions. It balances supply and demand dynamics and stimulates market activity. The housing units in Bangalore have doubled from 290,000 units in 2013 to almost 600,000 in Q2 of 2024. The city's most preferred real estate projects are in South, East, and North Bangalore.

In the previous year, the city has 40,000 housing units launched and the sale of 55,000 units. It is due to the growth in mid-segment housing. Factors that contributed to this sale and never-ending launch include increased rental rates, a shift back to office work, and better infrastructure. It is also the reason for a decrease in unsold housing stock, like less than 10%.

According to the state reports, the city's housing stock may rise from 600,000 units to 800,000-900,000 units by 2030. It also sees major growth in areas such as: