Bengaluru's avg home price drops to Rs 62 lakh, 86% of sales below Rs 1 Cr

Bengaluru’s residential real estate sales witnessed a slight dip in transactions during the July-September 2024 quarter, with a total of 25,259 residential units, including apartments and plots, registered with the Inspector General of Registration (IGR). The sales value for these properties amounted to Rs.15,739 crore, reflecting a 15% year-on-year decline from the same period in 2023, shows data analysed by Square Yards. 

 

Key Market Insights

During the July-September quarter, Bengaluru saw an 8% decrease in the number of residential units sold compared to the previous year. The average home sales value also saw a reduction, falling to Rs 62 lakh, a 7% dip from last year. However, this decline is largely seen as a natural adjustment following a period of rapid growth in the preceding months.

 

 

Sopan Gupta, Principal Partner at Square Yards, noted, “Bengaluru's residential market has seen a slight moderation in transaction momentum in the July-September 2024 quarter. This adjustment follows a period of rapid growth, but as we move into the festive season, we anticipate demand to pick up once again, driven by both end-users and investors. The ongoing infrastructure development, such as the metro network expansion, along with increasing office space uptake, will continue to positively impact the city's residential market.” 

In July-September 2024 quarter, the majority (86%) of property transactions in Bengaluru were concentrated in the price bracket below Rs 1 crore. The remaining transactions were in the Rs 1 crore and above category, with a notable 8% in the Rs 1-2 crore range.  

 

Leading Developers and Key Projects

Embassy Group and Prestige Group were the top performers in terms of home sales value. Embassy Group led the pack with Rs 295 crore in sales, thanks to high-performing projects like Embassy Springs in Devanahalli and Embassy Lake Terraces in Hebbal. Prestige Group closely followed with Prestige Golfshire generating significant sales value during the quarter. 

Top Developers by Sales Value (July-September 2024)

 

In terms of transaction volume, Artha Property and Tata Realty led the charge, with Artha Emprasa Startup City in Hoskote registering the highest number of transactions. Tata Realty’s Tata New Haven followed closely behind. Other notable developers included Birla Estates, Godrej Properties, and Casagrand, each contributing significant volumes and values in the quarter. 

Leading Developers by Transaction Volume

 

Area and Budget Trends

Bengaluru's residential market continues to favor larger homes, particularly in the 1,000 to 1,500 sq. ft. range, which accounted for 47% of the total registrations. Additionally, the majority of transactions (86%) were concentrated in properties priced below Rs 1 crore, reflecting the continued preference for more affordable housing options. The middle-class buyer segment remains strong, with a significant portion of transactions falling in the under Rs. 50 lakh price range.

 

Bengaluru Micro-Market Performance

The northern part of Bengaluru continues to be the most active region, accounting for 40% of all residential transactions during the quarter. The area’s proximity to Kempegowda International Airport has fueled demand, particularly for plots. Localities such as Chikkasanne and Chikkasandra in North Bengaluru recorded significant activity.

 

South Bengaluru also saw substantial transaction volume, with localities like Jayanagar and Electronic City standing out. Notably, Jayanagar recorded the highest home sales value in the city at Rs 469 crore, while Krishnarajapuram led in transaction volume, with 192 units sold during the quarter.

 

As homebuyer interest remains strong, developers are focusing on larger, more spacious apartments, driven by the rise of hybrid work models in the city. As the festive season unfolds, there’s optimism that the market will bounce back, with new registrations and higher sales expected in the coming months.