Bengaluru’s housing market has been on a remarkable upward trajectory, recording the highest year-on-year (YoY) hike of 39% in consumer searches. This surge in demand has been particularly noticeable in Bellary Road, which emerged as the most searched micro-market among homebuyers in Q2 2023
Demand and Supply Dynamics
In Q2 2023, Bengaluru’s residential market witnessed a 19.7% quarter-on-quarter (QoQ) increase in demand (searches), while the supply (listings) dipped by 10.6%. This imbalance has led to a 1.5% QoQ growth in average property rates. The demand for Ready to Move (RM) properties remains high, with 76% and 69% shares respectively
Micro-Market Insights
Bellary Road has consistently climbed the chart of consumer searches over the past few quarters, finally topping the list in Q2 2023. The rapid expansion of Bengaluru northward, especially post the opening of the Kempegowda International Airport at Devanahalli, has driven this shift in the residential real estate market. On the supply front, Whitefield and Sarjapur Road in east Bengaluru, followed by Bellary Road, continue to be the top runners
Property Preferences
The 3 BHK properties continue to be the most preferred, with a demand share of 51%. The supply for the same accounts for the lion’s share of the market at 43%. The 2 BHK configuration remains second on the chart with 35% demand and 43% supply share
Price Segments
Buyers have shown a strong preference for premium properties priced above INR 7,500 per square feet, which accounted for 42% share. Mid-range properties (INR 5,000-7,500 per square feet) continue to dominate with 42% supply share. However, demand for affordable properties (INR 5,000 per square feet) declined sharply to 18% from 30% in Q1 2023
Conclusion
Bengaluru’s residential market continued to register the highest YoY growth in demand among the top 13 cities tracked in this report, standing at 39%. The existing inventory has been rapidly absorbed over the past few quarters, owing to the increased demand, resulting in limited supply currently.
Source:
Internet
www.cushmanwakefield.com
