BENGALURU: The residential property market in Bengaluru continues to thrive with a recent report highlighting that the average prices have risen by 3% Quarter-on-Quarter (QoQ) between April and June (Q2) this year, following a 4.5% increase in the previous quarter, bringing the average to Rs 9,299 per square foot (psf).
As per the latest PropIndex report by Magicbricks, a platform for property buyers and sellers, over the past two years, the city has demonstrated consistent growth in residential prices with the average increasing from Rs 7,396 psf in Q2 2022 to Rs 9,299 psf in Q2 2024.
Despite an 8% decline in demand this quarter, the dip is considered temporary in an otherwise expanding market, the report noted and highlighted the increase in demand for under-construction properties, resulting in a 4.35% QoQ price rise from Rs 8,892 psf in the previous quarter to Rs 9,279 psf in Q2 2024.
Similarly, prices for ready-to-move properties saw a 2.41% QoQ increase, from Rs 9,095 psf in the previous quarter to Rs 9,314 psf in Q2 2024, as per the report.
The findings highlighted that in terms of buyer preferences, most home seekers in the city were looking for 3BHK houses, which accounted for 54% of the demand, followed by 2BHK at 38%. The average price for 3BHK residences has increased by 13.8% year-on-year (YoY) to Rs 9,100 psf while 2BHK units have seen a 16.4% YoY rise to Rs 7,600 psf.
Abhishek Bhadra, head of research at Magicbricks, explained that although property rates in the city have increased at a slower pace compared to the previous quarter, they remain close to the national average growth rate. The steady growth is attributed to the city’s status as a technology hub, job opportunities, infrastructure development, strong economic fundamentals, and educational institutions which contribute to attracting significant investor interest, he said.
As per the report, the most sought after localities are Whitefield, Sarjapura Road, Ballari Road, Electronics City and Kanakapura Road, due to their strategic location, robust infrastructure and proximity to key commercial and educational institutions.