However, residential sales worth Rs 1 crore and more in the top 8 cities including Bengaluru— rose 40% from the same quarter last year.
According to real estate consulting firm Knight Frank, Bengaluru’s housing sales fell to 13,133 units in the first quarter of 2024, a 2 percent decrease from the previous year.
The affordable housing market saw a steep decline, which was the cause of this decline. “This is primarily because the housing market selling for less than Rs 50 lakh saw a drop in sales in Q1, nearly 68 percent.
On the other hand, sales of tickets priced above Rs 1 crore have increased the most, with the Rs 50 lakh –Rs 1 crore segment growing by 8%,” stated Vivek Rathi, head of research at Knight Frank India, on April 4.
Housing sales in Bengaluru have declined over the last few quarters, and buyers are reevaluating their plans in light of the ongoing water crisis caused by unplanned development in the tech city.
Sales of 26,247 units in the first half of 2023 saw a further 2 percent decline in the city. According to earlier reports, the city’s sales increased by 1% overall in 2023 to 54,046 units.
According to Moneycontrol, investors considering purchasing real estate in the city have put off their purchases because there are dry spots in many areas, particularly those near the IT corridors.
Similar to the same time frame in 2016, office leasing in the city stayed steady at 3.5 million square feet (MSF) in the first quarter. Officing leasing fell 19 percent to 5.5 million square feet in the second half of 2023. The city saw a 14% decrease in office space transactions overall in 2023.
According to the Knight Frank India report, the percentage of sales in units priced at Rs 50 lakh and below decreased by 10% to 23,026 units from the same period last year across the top 8 cities.
The persistent negative effects of the pandemic on this industry, alongside rising prices and higher home loan rates, had suppressed demand.
In contrast to the identical period in 2017, the Rs 1 crore and above segment saw a notable 40% growth in the first quarter. Sales of homes in the Rs 50 lakh to Rs 1 crore segment fell by 6% as buyers’ attention was diverted to the more expensive range.
The eight largest cities are Bengaluru, Pune, Ahmedabad, Delhi-NCR, Chennai, Hyderabad, Kolkata, and Hyderabad.
Mumbai comes in first place.
Mumbai with 23, 743 units sold in the January-March period, a 17 percent increase over the previous year, had the highest sales and annual growth among the eight cities.
A 259 percent increase in sales of units costing more than Rs 1 crore was the primary driver of the upsurge. During the quarter, sales increased by 15% in Hyderabad and 14% in Pune.
In the eight cities, 93,254 residential units were introduced during the quarter, an increase of 7% from the last year. With a record 6,021 launches, Kolkata saw the most, 89 percent more than the previous year.
With a 13 percent growth to 10,527 units, Mumbai saw the largest growth in the affordable segment. Together, Pune (5,399), Mumbai (5,815), and Bengaluru (6,065) accounted for over 60% of sales in the Rs 50 lakh– Rs 1 crore.
