Luxury residential demand to rise in Bengaluru in the medium term

Prime residential sales surged 1.5x in Q2.

In a report, JLL said reputed developers are expected to continue launching luxury residential projects in Bengaluru in the near to medium term, particularly at locations like Whitefield, Bellary Road and Hosur Road.

A subsequent surge in demand in this segment is anticipated.

Here’s more from JLL:

Luxury residential unit sales surged 1.5 times q-o-q, indicating increasing demand due to rising disposable incomes, urbanisation and buyer preferences for luxury lifestyles.

The second quarter saw significant sales of luxury home projects from Godrej Woodscapes and Mahindra Zen, providing real estate developers and investors with an opportunity to capitalise on the growing market.

New launches also up significantly, by 1.4 times q-o-q

Bengaluru’s thriving IT sector, multinational companies and urban population have supported the growing demand and thus the launch of luxury residential projects in the quarter.

Luxury launches were predominantly seen in the Whitefield submarket, Bellary Road and Hosur Road locations. These included Godrej Woodscapes, Mahindra Zen, Prestige Camden Gardens, Brigade Insignia, Assetz Sora and Saki, and Vaswani Starlight.

Rents and capital values up q-o-q by 0.9% and 2.8%, respectively

Bengaluru’s booming IT sector, job creation and inward migration, along with rising lifestyle levels, are driving the surge in rental demand for luxury apartments, pushing rents for such properties as well.

Rising demand for luxury properties from both the resident and migrant population has also resulted in a capital price appreciation in this segment. Additionally, limited supply and high construction costs have also contributed to increasing prices.

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