According to a Knight Frank report, Bengaluru’s housing sales have decreased by 2% to 13,133 units from 13,390 units a year ago. This decline is attributed to lower sales in the affordable category, despite the IT city’s office demand remaining unchanged at 3.5  million square feet. 

“The first quarter of 2024 saw a nearly  65% to 70% decline in sales in the less than Rs 50 lakh housing segment, which has reduced the overall numbers. Sales in the residential segment between Rs 50 lakh and Rs 1 crore have decreased by 7%. This is mostly because purchasers in this market segment struggle with affordability. At the launch of Knight Frank’s  India Real Estate: Office and Residential Report (January-March 2024), head of research Vivek Rathi stated, “This might just be a short-term anomaly.” 

That said, he added, even though the city’s taps are running dry, sales of homes priced at more than Rs 1 crore have increased by nearly 50%. 

Responding to a question about whether the Bengaluru water crisis had affected the real estate market, Knight Frank chairman and managing director Shishir Baijal said that the issue “has not had too much of an impact on the housing sales trajectory and cannot be attributed to the decline in sales or the market  performance.” Nevertheless, since Bengaluru is a popular city for office space occupants and a significant commercial market, the problem needs to occupants and a significant commercial market, the problem needs to be resolved. It is the nation’s epicenter for commercial leasing  Government agencies must eventually address the water problem,” he continued. 

This is the Bengaluru housing sales data stacked up. 

Bengaluru’s residential market saw 13,133 units sold overall with 13,135 units introduced and an annual growth rate of 9% YoY in Q1 2024. According to the report, during Q1 2024, the average weighted residential price increased by 9% YoY to Rs 6,145 sq ft, the second highest value among the eight Indian cities. 

As many as 993 housing units were sold in the less than Rs 50 lakh category in Q1 2024, representing a 68% decline; 6065 housing units were sold in the Rs 50 lakh to Rs 1 crore category, representing a 7% decline in sales; and 6075 units were sold in the Rs 1 crore plus category, representing a 50% increase, according to the report. 

In Q1 2024, office space transactions in Bengaluru totaled 3.5 million square feet. 

In the first quarter of 2024, Bengaluru recorded office space transactions totaling 3.5 million square feet (mn sq ft). According to the report, the nation’s IT capital drove the expansion of the commercial market and accounted for 22% of 16.2 million square feet of transactions in the top eight Indian cities. 

From 1.3 million square feet in Q1 2023 to 5 million square feet in Q1 2024, office completions in the city increased by  275%. Almost 38.46% of the new office completions in the top eight markets in the nation were in Bengaluru. 

In Q1 2024, Global Capability Centers accounted for 51% of the city’s occupancy and leasing activity. The city’s Global Capability Centers (GCC) oriented transactions grew by 38% YoY, from 1.3 million square feet in Q1 2023 to 1.8 million square feet in Q1 2024.  

According to the report, Flex office spaces comprised 26% of the city’s leasing activity. Businesses with an Indian focus and Third-Party IT Services in second and third, respectively, at 14% and 95%