Bengaluru prime apartment sales down 31% in Q3

But analysts say the drop is likely short-lived.

According to a JLL report, the q-o-q decline in sales in Bengaluru is likely to be short-lived, following the boom in residential sales over the last few quarters. 

Prominent developers, with projects lined up for the festive season (Oct to Dec), anticipate a revival in demand.

Here’s more from JLL:

The quarter saw significant sales in projects by reputed developers, such as Prestige Group, TVS Group, Century Developers and Godrej Properties. Whitefield recorded the most sales, followed by Bellary Road and Hosur Road.

New supply declines by 34% q-o-q

Rising land prices, delays in approval from regulatory bodies (RERA) and the monsoon season are likely to have slowed down the launch of new projects.

Some prominent launches in Q3 2024 include Prestige Raintree Park, Brillio at Brigade Valencia, Sobha Infinia and Century Regalia. Whitefield accounted for most of the new launches in the luxury segment, followed by Hosur Road and Secondary submarkets.

Capital values and rents witness q-o-q increases of 3.3% and 0.9%, respectively

The surge in demand for luxury properties from both investors and end users, along with limited inventory and rising construction costs, have resulted in capital price appreciation.

The upward rent trend is fuelled by the increasing demand for rental properties, primarily at locations in proximity to office hubs.

Outlook: Luxury residential market expected to sustain

We anticipate continued momentum in the city’s residential market during the previous quarter. This is likely to be driven by rising preferences for home ownership, festive season promotions and increased willingness to invest in property during the festive season.

Bengaluru’s luxury residential market is expected to remain robust, fuelled by the city’s rapidly growing IT sector and ongoing infrastructure initiatives like the Namma metro network expansion.