Bangalore Residential Market in 2024 saw record-high sales, rising prices, and a shift toward luxury housing, driven by IT growth and infrastructure upgrades, setting the stage for continued momentum in 2025.
The year 2024 has been a pivotal one for Bangalore residential real estate market. Heightened demand for properties in high-end and premium segments, particularly in well-connected areas like Whitefield, Sarjapur Road, and North Bangalore were witnessed. This growth is fueled by Bangalore's expanding IT sector, a flourishing startup ecosystem, and ongoing infrastructure projects. Here’s a closer look at the key trends shaping the city’s real estate landscape in the year 2024:
1. Record-High Residential Supply and Demand
Bangalore has reached new milestones in residential real estate:
- Unprecedented Supply: A remarkable 13% year-on-year increase in new residential unit launches brought approximately 65,400 units to the market.
- Sales Volume Growth: Setting a record, 67,200 units were sold this year with a 3% growth compared to last year.
- Controlled Inventory Levels: Due to a surge in launches, unsold inventory saw a 4% decrease, standing at ~52,200 units. The inventory overhang period reduced to 9 months in 2024 from 10 months in 2023.
2. Significant Rise in Property Prices
The city witnessed substantial growth in property prices driven by robust supply-demand dynamics and infrastructure advancements:
- Price Growth: Average property prices across the city increased by ~10% compared to 2023, a substantially higher growth in capital values of around 13-14% was witnessed in prime areas like Whitefield, Sarjapur Road, and North Bangalore due to heightened demand.
- Infrastructure Impact: Projects such as the Yellow and Blue Metro Lines and the operational stretch of the Purple Line between Baiyappanahalli and KR Puram have boosted real estate values in areas of North, East and South Bangalore.
3. South Bangalore, Whitefield, and North Bangalore Lead the Market
These areas have remained the hotspots for residential activity:
- Dominant South Bangalore: Accounting for the highest share (~38%) of residential sales, areas like Hosur Road and Sarjapur Road remained popular due to their location, infrastructure and commercial vitality. It also witnessed the highest number of launches with ~21,600 units.
- East Bangalore remains Tech favored: Areas like Whitefield, KR Puram and others in the east accounted for over one-third of total sales in the city, continuing to be driven by its tech sector population. The region witnessed about ~20,300 newly launched units.
- North Bangalore Growth: The region saw a sharp increase in residential absorption with 1.5 times the number of sales as compared to last year, making it the fastest-growing zone. Proximity to Kempegowda International Airport (KIA) and the growing IT sector are driving factors. Around 19,000 new units were launched this year.
- Rising West Bangalore: Historically quieter, West Bangalore saw a surge in activity with over 1,000 additional units launched as compared to 2023.
4. Rising Demand for High-End and Luxury Housing
An evolving preference for upscale living is transforming the market:
- Shifts in Segments: High-end units (₹1–2 Cr) now make up more than one-third of total sales, while premium and luxury units (₹2 Cr+) have also grown to 15% of the market share. Whereas the mid-segment units (0.5 - 1 Cr) saw a considerable drop in sales, indicating the changing preferences of homebuyers.
- Decreasing overhang: Both high-end and premium segments have seen a decline in overhang period, as the current sales momentum in these categories has outpaced the rise in inventory, indicating favorable market conditions.
- Top Locations: Whitefield, Sarjapur Road, and North Bangalore dominated the high-end segment sales, while Indiranagar and Koramangala remain prime locations for luxury homes.
- Challenges in Affordable Housing: With reduced demand that dropped to 8% share in 2024 from 15% in 2023, the affordable segment (<₹50L) faces a significant inventory overhang period.
5. Preference for Larger Configurations and Spacious Layouts
Homebuyers are gravitating toward bigger, better-designed spaces:
- 3 BHK Dominance: The residential market has seen a clear preference for 3 BHK units among homebuyers. This accounted for more than half of total residential sales. The supply was also dominated by 3 BHKs. The demand for 4 BHKs as well increased by 15% from last year.
- Growing Unit Sizes: The average unit sizes in Bangalore increased by 10-12%, reaching ~1,600 -1,650 sq. ft., reflecting a demand for expansive living spaces with modern amenities. This preference for higher unit sizes is essentially driving the high-end and premium segments.
Residential Market Outlook for 2025
The momentum in Bangalore's real estate market shows no signs of slowing down:
- Connectivity Boost: Projects like the Namma Metro (Blue and Yellow Lines) and the Bangalore-Chennai Expressway will enhance connectivity and elevate property values in North, East, and South Bangalore.
- Dominant areas: Key localities for residential real estate are expected to remain the same with areas like Sarjapur Road, Whitefield, Thanisandra and Yelahanka driving the residential market. Hosur Road might see a higher surge in demand with the anticipated operation of Yellow Line Namma Metro.
- Emerging Areas: Tumkur Road in West Bangalore is likely to see heightened investor interest, as the Karnataka Government is planning for a Second Airport near Nelamangala.
- Increased Demand: 6 – 8 % growth in residential sales is anticipated in the coming year, driven by the high consumer appetite, infrastructure upgrades and IT sector expansion.
- Premium Segment Focus: In prime hotspots of the city, high-end and premium housing will dominate the supply, fueled by a preference for larger units and advanced amenities.
- Sustainability Mainstreamed: Due to strong demand from environmentally conscious buyers, green building practices and smart home technologies are expected to become standard across segments. Developers are also expected to come up with patent smart technologies to have a competitive edge in the market.
Bangalore's residential real estate sector remains vibrant, supported by a strong economic backbone and evolving buyer preferences. Its residential real estate market is set for continued growth, driven by a strong IT-ITeS sector and ongoing infrastructure advancements. Renowned as a tech hub, Bangalore benefits from substantial investments in metro expansion and enhanced connectivity, further fueling residential demand. With established developers introducing new projects and rising interest in premium and luxury properties, both investors and homebuyers can anticipate steady price growth. Bangalore Residential is setting the stage for another promising year in 2025. Stay tuned for more exciting developments as the city continues to redefine urban living.
