BENGALURU: India’s real estate market is witnessing a boom, not just for commercial and office spaces, but also for residential units. According to a recently released report, India’s luxury housing – units priced Rs 4 crore and above — have maintained strong sales momentum, registering a 27% increase from last year in the January to July period.
“A total of 156,000 units were sold and over 153,000 new units were launched across all categories,” stated the India Market Monitor Q2 2024 report by CBRE South Asia, a real estate consulting firm, on Thursday.
Bengaluru, one of the top real-estate cities in the country, along with Mumbai and Pune accounted for an impressive 63% share in the total residential sales in India in January-June 2024.
As far as the luxury segment is concerned, the city under-performed compared to last year in the same quarter. In Q2 last year, the city had made 200 sales, but this year, only 10 units were sold. Individuals are investing more in the mid-segment in the city, the report stated.
Having said that, Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE, said, “We foresee a strong momentum in the housing market for the remainder of the year. This optimism is driven by favourable home-buying sentiments, festive season promotions and significant land acquisitions by developers. These elements are expected to balance supply and demand dynamics and invigorate market activity.”
The city’s residential stock also nearly doubled from 2.9 lakh units in 2013 to almost 6 lakh in Q2 of 2024. South, East and North remain the city’s most active markets. Last year, the city’s residential sector witnessed 40,000 unit launches and 55,000 unit sales primarily driven by mid-segment housing. Factors such as rental appreciation, return to office trends and improved infrastructure helped the city to improve sales. This also helped the unsold inventory drop to the lowest ever at 10%.
As per the Karnataka Horizon–Navigating Real Estate Excellence in the South report, released by CBRE in the first week of July, by 2030, the residential stock in the city is expected to go up from 6 lakh units to 8-9 lakh units. “The major growth locations in the North are expected to be Bellary Road, Thanisandra Road and Yelahanka. For East – Whitefield, Varthur and Old Madras Road, South East – Sarjapur-Attible Road,” stated the report. Buyers want a thriving physical and social infrastructure, technology-enabled smart houses, facilities and amenities and apartments with clean and green environments.