Exploring Bengaluru Residential Market Trends in Q1 2024: Understanding Market Dynamics

Bengaluru, renowned for its thriving IT sector and burgeoning startup culture, has been a focal point of economic and real estate development. The city's residential property market has witnessed remarkable growth, attracting attention from investors and homebuyers alike.

Recap of 2023

In 2023, Bengaluru's real estate market experienced significant activity, marked by the launch of 497,965 new residential units, a 14% increase from the previous year. Notably, specific micro-markets such as Bagalur, Panathur, Krishnarajapura, Anekal, and Yelahanka saw concentrated development efforts. The INR 1-3 crore price range dominated the market, comprising 42% of new supply.

Sales surged with 44,002 units sold, reflecting a substantial 44% year-on-year growth. Varthur, Sarjapur, Whitefield, Bagalur, and Krishnarajapura emerged as hotspots, indicating strong demand in these areas. 2BHK apartments were the preferred choice, followed closely by 3BHK units, with the INR 45 lakh – INR 75 lakh segment witnessing the highest sales volume.

Contrasting Q1 2024 Demand Trends

Q1 2024 saw 10,380 units transacted, showing a 40% year-on-year increase but a 40% decline compared to Q4 2023. This variation could be attributed to seasonal factors, economic conditions, or specific market dynamics.

Decline in New Supply

Bengaluru witnessed a decline in new supply in Q1 2024, both quarter-on-quarter and year-on-year. Approximately 10,000 units were launched, marking a 23% decrease from Q1 2023 and a 21% decline from Q4 2023.

Summary

Bengaluru's real estate market thrived in 2023, characterized by a surge in new residential launches and strong sales, particularly in mid to high-end properties. However, Q1 2024 presented fluctuating demand trends, with a notable decline in sales compared to the previous quarter despite year-on-year growth. New supply also experienced a decline, reflecting market tightening.

Looking Ahead

As Bengaluru's real estate market continues to evolve, stakeholders must navigate carefully amidst fluctuating dynamics. Adapting to changing market conditions and understanding buyer preferences will be crucial for sustainable growth.