Knight Frank India Report analyzes Selling of Homes in Bengaluru drops by 2%

According to the report of Knight Frank India, the housing sale of Bengaluru housing sale has shown downward direction in 2024. it dropped by 2%  in comparison to the previous year in the affordable housing segment.

The head of research, Vivek Rathi said,"This is majorly due to a dip in sales of below Rs 50-lakh housing segment that has declined by almost 68% in Q1. However, the Rs. 50 lakh-Rs. 1 crore segment has grown by 8%, while the sales in ticket sizes above Rs. 1 crore have spiked the most."

Bengaluru has been seeing a fall in the housing sales this year followed by the water crisis due to unplanned development. The city saw another 2% dip in sales to 26,247 units in the first half of 2023. Overall the city saw a marginal increase in sales of 1% to 54,046 units in 2023. 

Maximum of the investors are rethinking their plan of investing in real estate as the tap are running dry near to the IT corridors. The leasing of commercial building in the city remained unchanged at 3.5 million square feet (msf) in the first quarter, similar to the year-ago period. In the second half of 2023, office leasing dipped 19% to 5.5 million square feet. Overall in 2023, the city witnessed a 14% drop in office space transactions.

Knight Frank India report says that, the share of sales in the units priced at Rs. 50 lakh and below dipped 10% to 23,026 units from the year-ago period. Among the 8 major cities, Knight Frank India report said the share of sales in the units priced at Rs. 50 lakh and below dipped 10 percent to 23,026 units from the year-ago period.

On the other hand, Rs. 1 crore and above segment grew significantly by 40% in the first quarter from the year-ago period. Sales in the Rs. 50 lakh to Rs 1 crore segment dropped of 6%, as homebuyers’ focus shifted to the higher-priced category.

Managing Director, Krisumi Corporation, Mohit Jain said, the robust sales growth observed in the housing sector, particularly in the high-end and luxury segments, underscores the enduring demand for quality residences that provide desired amenities and prime locations for homebuyers. As homebuyers increasingly seek properties that offer state-of-the-art facilities and superior quality of life, developers who cater to these evolving demands stand to benefit significantly. The willingness of homebuyers to pay a premium for such prestigious housing projects reflects their recognition of the value proposition presented by these offerings.

In response to this evolving landscape, developers are leveraging innovative designs, cutting-edge technologies, and premium services to create residential developments that exceed traditional expectations.

Director & Chief Executive Officer, Anant Raj Limited, Aman Sarin commented, that the Housing Sector has maintained its upward trajectory in 2024 especially in luxury & ultra-luxury segment, building upon the success of the previous years. This continued growth can be attributed to several key factors, including the stability of Interest rates, a favorable economic environment, and the rapid expansion of Infrastructure, particularly in major urban centers like the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR).

He  has seen a superb presales in its high end township located in Sector-63A, Golf Course Extension Road, Gurugram including in our recent launch of ultra-luxury High Rise Group Housing project called “The Estate Residences”. We plan to launch multiple projects in this category over next 12-18 months.   Given these favorable economic condition, supply scenario of luxury & ultra-luxury housing, we anticipate that the housing sector will continue to thrive, with strong demand persisting in the foreseeable future, however, developers with excellent track records. This positive outlook reflects the resilience and potential of the real estate market, highlighting opportunities for Investors, Developers and homebuyers alike.