Story of Bangalore: The IT and Real Estate Magnate
Bengaluru emerges as the forefront of residential sales across India in Q1 2024, recording nearly 17,000 units sold: JLL
- Mid-segment apartments (INR 50-75 lakh) constituted the largest portion of quarterly sales, accounting for approximately 33%.
- Premium category apartments (INR 1.0-1.5 crore) closely followed with a 23% share in sales.
- New launches in Q1 2024 increased by 9% compared to the previous quarter, totalling 12,616 units.
- Whitefield led the way in new launches, contributing 37% of the total, while Hosur Road and Bellary Road submarkets also made significant contributions.
- The premium segment (apartments priced between INR 1.0-1.5 crore) held a dominant 43% share in quarterly launches, followed by the upper-mid segment (INR 75 lakh-1.0 crore) with a 22% share.
- Due to high demand and limited supply, prices and rents experienced a positive trajectory.
- On average, capital values increased by 3.5-4.5% quarter-on-quarter in Q1 2024 and 15% compared to Q1 2023.
Bengaluru, April 15, 2024: Bengaluru has once again dominated the Indian real estate market by achieving the highest total sales of housing units for two consecutive quarters. The capital city of Karnataka witnessed a phenomenal performance in Q1 2024, with a staggering 16,995 housing units being sold. While there was a 15% decline in Quarter-on-Quarter sales (Q4 2023, which previously set a record with approximately 20,000 units sold), the city showed an impressive bounce-back in Q1 2024, recording a remarkable 30% growth in sales compared to the same quarter in the previous year (Q1 2023). The Q1 2024 data was not just notable on a quarterly basis but have also surpassed the quarterly average sales volume (Q1 average 2019-22) by an astounding 124%. Bengaluru’s real estate market continues to attract investors and homebuyers due to its robust infrastructure, thriving IT sector, and conducive business environment. The city’s ability to surpass previous sales records, even in the face of challenges, reaffirms its position as a highly sought-after destination for real estate investments and home purchases.
The mid-segment apartments, priced between INR 50-75 lakh, accounted for the highest share of nearly 33% in quarterly sales. This was closely followed by the premium category apartments, priced between INR 1.0-1.5 crore, which held a 23% share.
“An interesting trend indicated that approximately 90% of the sales were in under-construction projects, signalling strong buyer confidence in such developments. Furthermore, the unsold inventory continued to decline, showcasing a 6% and 20% decrease compared to Q4 2023 and Q1 2023, respectively. The total unsold inventory stood at 72,158 units by the end of Q1 2024. In terms of specific locations within Bengaluru, Whitefield emerged as the forerunner, capturing a substantial 34% share in sales. This was followed by the Bellary Road submarket, which held around 27% share. The proximity of Whitefield to the IT hub and the extension of the metro network have fuelled increased sales in the area. On the other hand, projects in the Bellary Road submarket have benefited from their proximity to the airport,” said Rahul Arora, Senior Managing Director – Karnataka, Kerala, JLL India
Additionally, new launches during the quarter increased by 9% compared to Q4 2023, with a total of 12,616 units introduced to the market. Here, Whitefield took the lead once again, contributing 37% of the new launches. Hosur Road and Bellary Road submarkets also made significant contributions. In terms of segments, the premium segment, consisting of apartments priced between INR 1.0-1.5 crore, held a dominant 43% share, followed by the upper-mid segment, priced between INR 75 lakh-1.0 crore, with a 22% share in quarterly launches. Reflecting the high demand, prices and rents have experienced a positive trajectory. On average, capital values increased by 3.5-4.5% quarter-on-quarter in Q1 2024 and 15% compared to Q1 2023. Notably, the recent extension of the Namma Metro network to Whitefield resulted in the highest residential price growth in that submarket. Hosur Road also witnessed significant capital value increases following the government’s approval of Phase 3 of Namma Metro, which will connect the submarket with the Kempegowda International Airport.
Driven by supply from established developers, stable economic conditions, and positive buyer sentiments, residential sales in the first quarter (Jan-March) of 2024 experienced significant growth. The first quarter of 2024 (Q1 2024) achieved the highest residential sales to date, with a notable 20% increase compared to the same period in 2023, selling a total of 74,486 units. This quarter marks the second consecutive quarter where sales have exceeded 74,000 units, following the record-breaking performance in Q4 2023 (75,591 units). These results establish a strong foundation for continued growth in the residential market, surpassing the sales performance of 2023.
India’s residential market – Scaling new heights.
| Residential Sales (in units) | Q1 Average (2019-22) | Q1 2023 | Q1 2024 | % share in 2024 | Y-o-Y change (%) |
|---|---|---|---|---|---|
| Bengaluru | 7,582 | 13,029 | 16,995 | 23% | 30% |
| Chennai | 2,875 | 2,563 | 3,373 | 5% | 32% |
| Delhi NCR | 6,812 | 10,139 | 10,153 | 13% | 0% |
| Hyderabad | 3,940 | 8,123 | 8,593 | 12% | 6% |
| Kolkata | 2,083 | 3,160 | 4,979 | 6% | 58% |
| Mumbai | 8,181 | 12,988 | 16,544 | 22% | 27% |
| Pune | 5,010 | 12,038 | 13,849 | 19% | 15% |
| India | 36,481 | 62,040 | 74,486 | 100% | 20% |
Source: Real Estate Intelligence Service (REIS), JLL Research.Note: Mumbai includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai; Delhi NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad and Sohna.
“The quarterly sales were majorly contributed by the markets of Bengaluru, Mumbai, and Pune accounting for ~64% of the total sales. All these three cities saw robust launches that received good response from the buyers. While Bengaluru and Pune recorded highest sales in the INR 50 lakh-75 lakh price segment, Mumbai saw maximum sales in the INR 1.5 crore-3 crore price segment. The strategic launch of right products by the developers taking into cognizance the demand and market dynamics has led to this new growth phase in the residential market. Interestingly some of the branded developers are also planning to enter newer markets and cities to expand their portfolio and market share” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, JLL India.
Luxury segment soars, pushing up quarterly sales.
| Ticket Size Break Up – Sales(%) | |||
|---|---|---|---|
| Q1 2022 | Q1 2023 | Q1 2024 | |
| Less Than 50 Lakh | 27% | 18% | 15% |
| 50 Lakh – 75 Lakh | 23% | 22% | 21% |
| 75 Lakh – 1 Crore | 15% | 17% | 17% |
| 1 Crore – 1.5 Crore | 16% | 20% | 19% |
| 1.5 Crore – 3 Crore | 14% | 14% | 17% |
| 3 Crore – 5 Crore | 3% | 4% | 7% |
| Above 5 Crore | 2% | 5% | 4% |
| Total | 100% | 100% | 100% |
Source: Real Estate Intelligence Service (REIS), JLL Research
Residential prices move up.
Residential prices in the top seven cities of India have been on an upward trajectory in Q1 2024, with increases ranging from 3-15% Year-on-Year (Y-O-Y). The highest price increase was witnessed in Bengaluru and Delhi NCR to the tune of ~15%. Due to the faster pace at which quality launches are getting sold off, the availability of such inventory is extremely limited, resulting in a surge in prices. Additionally, developers are launching new phases of existing projects at elevated price points.
Q1 2024 saw the highest number of new launches ever recorded in the previous first quarters.
| Residential Launches | Q1 Average (2019-22) | Q1 2023 | Q1 2024 | % share in 2024 | Y-o-Y change (%) |
|---|---|---|---|---|---|
| Bengaluru | 10,508 | 11,745 | 12,616 | 16% | 7% |
| Chennai | 2,950 | 3,310 | 4,262 | 5% | 29% |
| Delhi NCR | 3,360 | 9,152 | 7,669 | 10% | -16% |
| Hyderabad | 6,839 | 13,844 | 16,728 | 21% | 21% |
| Kolkata | 1,870 | 3,737 | 3,093 | 4% | 20% |
| Mumbai | 11,745 | 16,867 | 20,224 | 26% | 20% |
| Pune | 5,894 | 16,340 | 14,518 | 18% | -11% |
| India | 43,166 | 74,995 | 79,110 | 100% | 5% |
Source: Real Estate Intelligence Service (REIS), JLL Research
The first quarter of 2024 witnesses a record-breaking number of residential launches with 79,110 units, surpassing the previous Q1 numbers. This represents a Y-O-Y growth of 5%. Developers have readjusted their marketing strategies, leading to a noticeable surge in the number of high-value projects being launched. Approximately 37% of these new launches were in the price bracket INR 1.5 crore and above.
Unsold inventory increased by 1% Q-o-Q in Q1 2024
As of Q1 2024, unsold inventory across the seven cities increased by 1% on a Q-o-Q basis as launches outpaced sales. Mumbai, Bengaluru, and Hyderabad together account for 66% of the unsold stock. An assessment of years to sell (YTS) shows that the expected time to liquidate the stock has remained same at 2.1 years in Q1 2024.
Looking Ahead: Growth momentum continues
In 2024, we expect the residential sales to be around 300,000-315,000 units as the growth momentum currently seen is expected to be carried forward. Strategic land acquisitions at prime locations as well as along growth corridors in cities is expected to strengthen the supply inflow across cities. Established developers are expected to enter newer markets to fortify their portfolio and expand their market presence.
According to a report by property consultancy Anarock, Bengaluru also saw the highest annual jump in average residential prices at 32% – to ₹7,800 per sq ft by the end of H1 2024, from ₹5,900 sq ft by H1 2023-end.
In the last five years, average residential prices surged by 57% in the IT capital. “Average residential prices in the city stood at ₹7,800 per sq ft by H1 2024-end against ₹4,960 per sq ft at H1 2019-end,” said Prashant Thakur, regional director and head at Anarock Group.
Presently, North Bengaluru commands the highest average capital values of more than ₹7,000 per sq ft among the city’s four corners, the report noted.
As per the report, the average capital values are projected to witness a moderate appreciation of 10% across the city, by the end of 2024, with prime locations and established tech corridors potentially experiencing steeper growth.
Furthermore, segments such as co-living spaces and eco-friendly homes can play key roles in market expansion, it said. By the end of H1 2024, the city’s available residential inventory stood at approximately 45,420 units; marking a 30% five-year decline over approximately 64,680 units by H1 2019-end, Anarock said. Moreover, inventory overhang in the city fell to a record low of 8 months by H1 2024-end, from 15 months in H2 2019, the consultant added.
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #1
Sarjapur Road, Bangalore
Because the Sarjapur Road is a piece of Sarjapaur-Marathahalli Road, there are popular residential neighborhoods such as Koramangala, Doddakannelli, Kaikondrahalli, HSR Layout and Carmelaram on the strip. However, what truly contributes to the greatness of the Sarjapur Road are various future projects that are meant to solve the traffic jam issues by making it easier. Plans for this place include the construction of a Peripheral Ring Road that is 74 km long, Sajapur Road expansion, and Sajapur-Attibele Road widening, as well as the road from Varthur Road to Sajapur.
Because of these compelling factors, property values on Sarjapur Road have increased by more than 30% over the past three years and are currently hovering around Rs 7,850 per square foot.
Apartments for sale on Sarjapur Road, Bangalore are Esha’s Courtyard, Puravankara Plots, and Shriram Chirping Grove.
Property Price in Sarjapur Road:
Average Price Per Sq. Ft: Rs 7,850
Monthly Rentals: Rs 30,000 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #2
Indiranagar, Bangalore
One of the best areas in Bangalore for investment purposes is Indiranagar situated along the Old Madras Road. The regions around have rich peasants residing in them, open, clean, and quiet in addition to being cosmopolitan which has made it become an upcoming suburb towards East Bangalore part.
The main attraction of the place has been its commercial landscape. What is more, this area’s leasing prices are lower, meaning that every month businesses can operate here from eleven thousand to seven lakh rupees. Moreover, it is held that the turning point which has involved the relocation of Flipkart to Indira Nagar from its former location at Koramangala. Whitefield is one of the most preferred IT hubs is just minutes away from it.
The premium inventory in the area’s property market is priced at approximately Rs 13,200 per square foot. Although more than 80% of the available residential stock is ready to move into, purchasers now have additional options.
In Indira Nagar, three-bedroom apartments make up the majority of the flats for sale or rent. The area’s rental yield is approximately 5% YoY. The region is well-connected, with numerous connecting roads and two metro stations serving it: Indira Nagar Metro Station (1.5 km away) and Swami Vivekananda Metro Station. Old Madras Road, 100 feet, 80 feet, Indira Nagar Double Road, and Old Airport Road are the main thoroughfares that serve Indira Nagar. Furthermore, the micro market will benefit from the planned Bangalore-Chennai Expressway.
As a result, Indira Nagar’s ascent to prominence as an investment destination and its array of social amenities, including schools, hospitals, recreational centers, and excellent connectivity, have been facilitated by the presence of well-known developers.
Flats for Sale in Indiranagar, Bangalore is, Godrej Athena, Brigade Cornerstone Utopia
Property prices in Indira Nagar:
Average property price (per sq ft): Rs 13,200
Monthly Rentals: Rs 23,000 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #3
Hennur, Bangalore
Hennur has a large number of 2 BHK apartments that are ready to move into and are priced at Rs 7,100 per square foot. Due to the numerous multinational corporations (MNCs) forays, Hennur has gained popularity among homebuyers. The demand in Hennur is also greatly influenced by its proximity to employment hotspots like Manayata Tech Park and Kirloskar Business Park, which are 6–8 km away and are home to numerous corporate giants. For a 2 BHK typology, this developing area provided an average monthly rental yield of Rs 27,000 and an annual rental yield of 4%. In the last year, Hennur home values have risen by about five percent.
Property prices in Hennur:
Average property price (per sq ft): Rs 7,100
Monthly rentals: Rs 10,000 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #4
Attibele, Bangalore
Tucked away in South Bangalore, near Electronic City, Attibele has quietly become one of the most sought-after real estate locations. In addition to providing a growing base of biotech and IT enterprises, it provides easy access to well-known job hubs like Anekal and Silk Board Junction. Attibele, once a sleepy village, is now a burgeoning neighborhood that has mostly gained traction due to demand spillover from Electronic City. Attibele is now a refuge of reasonably priced homes thanks to the availability of big land tracts and a nearby IT hub. Despite a 27% increase in the last three years, the average home value in this area is still Rs 4,600 per square foot.
Properties for sale in Attibele, Bangalore are Annciya Isha Serene, Sowparnika Life On The Green, Esha’s Courtyard
Property prices in Attibele:
Average property price (per sq ft): Rs 4,600
Monthly rentals: Rs 10,000 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #5
Kadugodi, Bangalore
Homeowners favor Kadugodi because its reasonable property prices start at Rs 6,000 per square foot. Housing demand in Kadugodi is mostly driven by the business establishments located within 14 km, specifically at Whitefield, Bellandur, and the Outer Ring Road (ORR). The bulk of the inventory here consists of residential units with 2 BHK designs; monthly rentals begin at Rs 11,000 per unit. For Kadugodi, the proposed suburban rail project that would create a Kengeri-KSR Bangalore-Whitefield Rail Corridor is anticipated to be revolutionary. It will enhance this emerging area’s real estate potential in addition to raising its connectivity quotient.
Apartments for sale in Kadugodi, Bangalore are Amrutha Platinum Towers, Signifa Sapphire, Sapthagiri Sandalwoods
Property prices in Kadugodi:
Average property price (per sq ft): Rs 6,000
Monthly rentals: Rs 11,000 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #6
Yelahanka, Bangalore
Yelahanka is still well-known among real estate investors because of its close proximity to IT parks and Kempegowda Airport on the Outer Ring Road. Numerous developers have chosen to construct housing complexes in Yelahanka due to the area’s excellent social and physical facilities as well as the availability of huge land parcels. Experts state that the presence of well-known engineering and management colleges has led to the emergence of several Paying Guest (PG) facilities in the vicinity, with rates as low as Rs 7,500 per bed. The price per square foot is approximately Rs 7,200 here.
In the previous three years, Yelahanka has seen an increase in property values of over 33 percent; these values are expected to rise much more following the projected developments. Yelahanka’s investment potential would be increased by the 30 km long Gottigere-Nagawara Line 4 extension to Kempegowda International Airport (KIA), which is part of Namma Metro Phase 2B.
Flats for sale in Yelahanka, Bangalore are Mahaveer Celesse, Brigade Insignia, Amruthadhama Enclave Phase-3
Property prices in Yelahanka:
Average property price (per sq ft): Rs 7,200
Monthly rentals: Rs 8,500 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #7
Yeshwanthpur, Bangalore
Yeshwanthpur, is one of North Bangalore’s fastest-growing neighborhoods, with a dedicated metro station on the Green Line and excellent access to Tumkur Road and Asian Highway 47. About five km distant, in the Peenya Industrial Area, which is home to various small-scale enterprises, Yeshwanthpur enjoys tremendous residential demand. Given that over 80% of searches in the area fall into this chosen category, most buyers in this area are interested in 2 BHK apartments priced between Rs 35 lakh and Rs 1.2 crore.
Apartments for sale in Yeshwantpur, Bangalore are Skav Aastha, Govianu Ace Grand, Assetz 22 & Crest
Property prices in Yeshwanthpur:
Average property price (per sq ft): Rs 8,800
Monthly rentals: Rs 12,000 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #8
KR Puram, Bangalore
Krishna Raja Puram, often known as KR Puram, is a Bangalore suburb that consists of a mix of single-family homes and multi-story flats. At Rs 27,000 per month for a 2 BHK type, rentals in KR Puram are more reasonably priced than in nearby Whitefield and Marathahalli, where typical monthly costs are Rs 30,000. A strong growth trajectory will also be sparked by the opening of a dedicated metro station at KR Puram with the completion of the Blue Line (Silk Board-KR Puram) and the Purple Line’s extension to Whitefield by 2023. In the last three years, the price of this developing region has increased by almost 9%, to approximately Rs 6,000 per square foot.
Flats for sale in KR Puram, Bangalore are, Sree Adithya Lotus Park, Krishna Lakefront, Manjushree Vasavi Enclave
Property prices in KR Puram:
Average property price (per sq ft): Rs 6,000
Monthly rentals: Rs 10,000 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #9
Nallurhalli, Bangalore
With strong access to Old Madras Road (OMR) and Old Airport Road, Nallurhalli has prospered due to its growth in commerce and immaculate greenery. It is about two kilometers away from Whitefield, one of Bangalore’s well-known IT districts. In addition, Nallurhalli is home to two significant tech parks, International Tech Park and Sigma Tech Park, which are home to numerous telecom, automotive, and technology firms. With time, the developing neighborhood has developed into a one-stop shop for young professionals looking for reasonably priced housing near their place of employment. After rising by more than 36% over the last three years, the average price of a home in Nallurhalli is Rs 7,500 per square foot.
Flats for sale in Nallurhalli, Bangalore are Amrutha Platinum Towers, Signifa Sapphire, AR Tulip
Property prices in Nallurhalli
Average property price (per sq ft): Rs 7500
Monthly rentals: Rs 15,000 onwards
Top 10 Emerging Areas For Real Estate Investment in Bangalore 2024 #10
Nagavara, Bangalore
With more than 50% of its inventory designed as two-bedroom units, Nagavara is now a bustling residential area thanks to its well-established social infrastructure. After growing by 50% over the previous five years, Nagavara offers a variety of property kinds, including flats, standalone homes, villas, and plots, all priced at Rs 11,250 per square foot. Additionally, tenants are aware of the area because of its prime position along Bellary Road, which houses the Karle Special Economic Zone (1 km), Central Business District (10 km), and Peenya Industrial Area (13 km). The neighborhood’s average monthly rentals range from Rs 10,000 to Rs 34,000.
Apartments for sale in Nagavara, Bangalore are Casagrand Regal, Zenith Residences, Casagrand Keatsway
Property prices in Nagavara:
Average property price (per sq ft): Rs 11,250
Monthly rentals: Rs 10,000 onwards
Trending Localities for Rental Income in Bangalore:
1. Electronic City: The Tech Hub
IT employees are drawn to Electronic City’s tech parks and corporate offices regularly, creating a strong demand for rental apartments. The growing IT industry and the upcoming Metro link both have improved rentals. The enticing average monthly rental yield of 3.64%
2. Whitefield: Urban Amenities and Rental Opportunities
Whitefield’s advantageous position, which draws professionals from large corporations and academic institutions, fuels the city’s thriving rental market. Together with enhanced infrastructure, Whitefield’s continuous transition to a smart city makes it a desirable location for high-quality rental properties. Its potential for attractive rental returns is highlighted by the steady increase in rental rates. An average rental yield is of 3.58%
3. Hebbal: The North’s Real Estate Gem
Hebbal’s advantageous location close to the airport and major thoroughfares is drawing in investors and renters. Improved infrastructure, such the flyover between Hebbal and KR Puram, has increased connectivity. Hebbal is a noteworthy choice for significant rental returns, as evidenced by market data that shows a rising trend in rental demand and rates there. Average rental yield of 2.22%.
4. Koramangala: The Trendy Locale with Strong Rental Prospects
Koramangala continues to be a popular residential and business district. Real-time data indicates that there is a persistent need for rental properties, which offers investors looking for rental returns a chance. Rental yield ranges from 4 to 7%
5. Marathahalli: The East’s Rental Powerhouse
The demand for rental properties is always present in Marathahalli because of its status as a thriving business and IT center and since it’s close to important IT parks and corporate areas. According to recent studies, there has been an upward trend in rental rates, suggesting that Marathahalli is a promising location with substantial potential for strong rental returns. This dynamic powerhouse of the rental market balances a booming demographic landscape with promising rental income opportunities. Marathahalli boasts enticing rental potential, offering around 3.68%
