Bengaluru prime residential sales hit record highs in Q4

Over 3,700 units were sold during the quarter.

Sales in Bengaluru’s prime residential market reached a new high in 4Q23, with more than 3,700 units being sold. 

According to JLL, the majority of sales was recorded in projects by prominent developers like Prestige Group and Casagrand, among others. The Secondary, Bellary Road and Whitefield submarkets accounted for higher shares of the quarterly sales. 

Here’s more from JLL:

For the full year 2023, Luxury housing sales hit an unprecedented peak and were up by 4.5 times y-o-y. Luxury housing sales in Bengaluru have continued to surge post-pandemic, driven by increased demand for larger apartments with modern amenities, particularly among NRIs and high-income millennials.

New launches down 40% q-o-q

New launches in the Luxury segment dropped by around 40% q-o-q. Over 85% of the new launches were contributed by the Whitefield and Bellary Road submarkets. 

Lodha Mirabelle, Casagrand Flamingo, Brigade Sanctuary, Prestige Glenbrook, Fairmont at Brigade Orchids and Mana Dale were among the significant project launches during the quarter.

Rents and capital values rise by 2.7% and 4.9% q-o-q, respectively

Bengaluru housing rents are on a constant growth curve, with a majority of employees returning to their workplaces in the city, resulting in a shortage of rental options. This has led to a big surge in rents.

Capital values have also recorded growth of 15.6% y-o-y, amid strong sales traction and low unsold inventory in the city. 

Outlook: Luxury housing segment to sustain momentum during 2024

The Luxury housing segment is anticipated to witness a surge in both launches and sales, backed by rising demand from NRIs and increased preference for larger homes among end users and investors. This is likely to result in further capital value appreciation in 2024.

Infrastructure additions are crucial for the city’s residential sector development, with suburban locations emerging as desirable luxury housing hubs due to their good connectivity and support infrastructure.

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