Bengaluru prime residential sales nearly halved in Q1

Blame it on the water shortages in the city.

According to a JLL report, high-end sales in Bengaluru in 1Q24 declined by 47% q-o-q, with some deferments in investment plans amid water shortages in the city, particularly along major IT corridors. 

The Whitefield submarket continued to account for a majority of the sales in the luxury segment, albeit down q-o-q.

Here’s more from JLL:

There are indications of sustained demand for high-end projects, with launches also geographically dispersing towards suburban corridors, as evidenced by Hosur Road witnessing healthy sales in the luxury segment over the past few quarters and Bellary Road also emerging as a key corridor.

New launches down by 7.2% q-o-q

New launches in the luxury segment fell by 7.2% q-o-q. Over 93% of the new launches were recorded in the Whitefield and Hosur Road submarkets.

Prestige Somerville, Assetz 66 & Shibui, Chaitanya Sankhya and Mana Jardin Neo were among the prominent new launches during the quarter.

Rents and capital values rise by 1.2% and 2.7% q-o-q respectively

Bengaluru’s water crisis resulted in fewer housing rental and sales queries in the city during the quarter, particularly in areas without a Cauvery water connection. Capital values and rents, however, continued to witness growth despite the short-term slowdown, indicating a quick revival in the city’s luxury housing sector.

Property capital values are expected to witness appreciation during 2024, particularly in the prominent and emerging residential catchments.

Outlook: Luxury home market to remain growth-oriented

The demand for high-end and luxury properties has surged in recent years, driven by homebuyers’ desire to invest in high-quality assets that reflect their lifestyle aspirations. This has resulted in more launches by reputed developers, leading to the rapid expansion of the city’s luxury residential segment.

The luxury housing segment is expected to witness a surge in launches and sales in the coming quarters, driven by increased demand from NRIs and preferences for larger homes among end users and investors. This is likely to result in further capital value appreciation in 2024.

Note: Bengaluru Residential refers to Bengaluru's prime residential market.