Bengaluru housing market booms, big flats a rage

Bengaluru witnessed a strong recovery in residential sales and launches in the second half of 2021.
A panaromic view of residential buildings in Bengaluru (Photo | Express)
A panaromic view of residential buildings in Bengaluru (Photo | Express)

BENGALURU: Bengaluru witnessed a strong recovery in residential sales and launches in the second half of 2021. The city’s residential market witnessed a 61% Y-o-Y jump in sales to 38,030 units in Calendar Year 2021 from 23,579 units in 2020. In the second half of 2021 alone, the number of units sold was 23,218 units, compared to 11,402 units sold in H2 2020, according to a report by Knight Frank.

Also, in the last quarter of 2021, residential sales surpassed the pre-Covid level. While residential sales were 10,828 units in Q42019, they stood at 11,881 units in Q42021, the report said. Across the country, Mumbai with 34,382 units and National Capital Region with 23,599 units were the leading residential sales performers in H2 2021.

South Bengaluru — Koramangala and Sarjapur Road — remained the largest market, accounting for 38 per cent sales in H2 2021. However, North Bengaluru recorded the fastest sales growth of 134% Y-o-Y during H2 2021. South and East micro-markets saw growth of 127% and 59%, respectively.

The report highlights that people prefer bigger apartments, as mid and high-end (Rs 50 lakh and above) constituted 68 per cent of home sales in H2 2021. Apart from residential sales, the city’s commercial market maintained its high share of 32 per cent of the total office volume transactions in the country in 2021. The total office transactions for 2021 stood at 12.23 million sqft.

Shantanu Mazumder, Executive Director – Bengaluru at Knight Frank India said, “Bengaluru’s commercial market activity has seen a positive upswing in the past two quarters of the year.” Mazumder added that preparing for manpower and infrastructure capabilities to secure global IT projects, the Indian IT sector went in for record hiring amid the pandemic, and this will serve as dry powder for office demand when the Omicron uncertainty subsides. In the case of launches, the last quarter of 2021 surpassed pre-Covid levels. While Q42019 saw the launch of 5,519 new units, in Q42021, it was over 8,400 units.

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