Bengaluru residential launches jump 23% to 10,000 units in Q2

Total launches reached nearly 19,000 as of H1 2024.

According to a report by Cushman and Wakefield, Bengaluru recorded nearly 10,000 residential unit launches in Q2, a 13% growth on a quarterly basis and a 23% expansion as compared to the same period last year. 

As of H1, the total launches stood at ~18850, a 19% growth as compared to H1 2023. 

Here’s more from Cushman and Wakefield:

Around 41% of total quarterly launches were in the Eastern submarket, with Whitefield alone accounting for around a fifth of the launches in the submarket. Indiranagar, Budigere Cross and Horamavu were the other prominent locations in the submarket which witnessed launches, including a large residential township project at Budigere Cross by a national, listed developer. 

South and South-East submarkets cumulatively contributed around a third of launches in the quarter with a key highlight being the launch of a luxury project by a prominent Mumbai-based developer at Bannerghatta Road in South Bengaluru. 

Northern submarket accounted for 27% of quarterly launches with a couple of city-based, listed developers launching luxury projects at Yelahanka. Bagalur was the other location in North Bengaluru that recorded the launch of new phases in existing projects. 

Branded and listed developers contributed nearly 65% of quarterly launches, up from the 53% share in the previous quarter. However, a number of smaller, local developers have also moved ahead with new launches, in continuation of the trend witnessed in recent quarters, on the back of the opportunity provided by the strong residential growth. 

High-end and luxury segment records strong growth 

Mid -segment contributed half of the total unit launches in Q2, sharply lower than the 69% share in the previous quarter. On the other hand, the high-end and luxury segment recorded strong growth in Q2 with the segment’s contribution jumping to 38%, up from 20% in the previous quarter. In absolute terms, the high-end and luxury launches more than doubled on a quarterly basis. The affordable segment’s share in quarterly launches stood at 13%, up from 11% in the previous quarter. 

On a half-yearly basis, the mid-segment witnessed over 11,000 unit launches, a 29% growth over the same period last year. In H1 2024, the segment’s share stood at around 59%, up from 54% in H1 2023. Close to 5,500 high-end and luxury mid-segment launches were launched in H1 2024, a growth of 13% over the same period last year with the segment’s share remaining constant at nearly 30%. Affordable unit launches stood at ~2,300 in H1 2024, a decline of around 8% from the same period last year. 

Continued appreciation in capital and rental values 

The east and north submarkets recorded an average 4.5% growth in capital values on a quarterly basis on the back of continued strong demand and rising ticket prices of upper-mid and high-end projects. An average 5-7% qoq rental growth was witnessed across key IT hubs in the east and southeast submarkets with healthy demand for rental apartments among tech professionals.