The average property prices in Bangalore remained stagnant in Apr-Jun 2021 vs Jan-Mar 2021. The residential rental landscape continued to witness negative growth to the tune of three percent, YoY, due to high vacancy levels in the wake of the second wave of COVID-19.
The micro-markets of the eastern belt, such as Whitefield and Electronic City, remained popular among potential homebuyers. With work-from-home culture in continuation, demand for bigger homes remained relatively high in Bangalore. The city also recorded a surge in the enquiries for villas and 3 BHK homes. The micro-markets of North and South zones, including Devanahalli, Hebbal, Yelahanka, Hennur, Thanisandra, Jakkur, Kanakapura Road and Bannerghatta Road, recorded a few enquiries within Rs 80 lakh-Rs 2 crore budget segment.
In addition, the demand for plotted developments remained high amongst price-sensitive buyers. Land parcels priced within Rs 1 crore were the most preferred. A few Grade A developers planned to launch new projects in areas, such as Sarjapur Road, Devanahalli, Attibelle, Chandapura, and Hoskote, in the ensuing quarters.
The work-from-home trend continued to keep a major portion of the migrant population at bay, adversely impacting the rental market. Many tenants, who had returned to the city a few months back, also gave up their rented houses due to a sudden surge in cases and returned to their hometowns again. Many residential societies imposed stringent COVID-19 protocols and restricted the entry of new tenants.
As the property registrations started seeing some growth from mid of June 2021, a few Grade A developers, such as Prestige, Purvankara, Brigade and Vaishnavi, are expected to launch their residential projects in the upcoming quarters. In Apr-Jun 2021, Godrej and Sobha were among the few Grade-A developers who got their projects registered.