- Bangalore saw the registration of over 20 residential projects under Karnataka Real Estate Regulation and Development (RERA) Act (K-RERA), indicating a spike of over 40 percent, QoQ.
- A 10 percent rate cut in guidance value and the overall economic revival helped housing sales grow by over 30 percent in Jan-Mar 2022, YoY. About 14,000 housing units were sold in the studied period.
- Potential home seekers preferred large-sized apartments - 3 BHK units measuring 1,200-1,500 sq ft - within Rs 1.3 crore budget segment in the northern and eastern belts of the city.
- While residential apartments continued to remain favourites, a section of homebuyers also showed affinity towards plotted developments and farmlands within Rs 60-80 lakh.
- Average rental values saw a downward revision of two percent in Jan-Mar 2022 vs Jan-Mar 2021.
BANGALORE REALTY AT A GLANCE
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
99ACRES' OUTLOOK
The residential realty landscape of Bangalore staged a big comeback in the first quarter of 2022 on both demand and supply fronts. In January 2022, site visits recorded a slight hit due to the emergence of the third wave of the pandemic, which was followed by a short-term mobility restriction. However, the visits bounced back sharply from February 2022 onwards. Bangalore saw a substantial improvement in sales volume in the studied quarter. The city registered sales of about 14,000 housing units, indicating an annual growth of over 30 percent.
Potential home seekers preferred large-sized apartments - 3 BHK units measuring 1,200 -1,500 sq ft - in the northern and eastern quadrants of the city. While residential apartments continued to remain favourites, a section of homebuyers also showed affinity towards plotted developments and farmlands within Rs 60-80 lakh. Steady demand for residential units led to an upward revision in average property prices by a percent in Jan-Mar 2022 vs Oct-Dec 2021.
With around 6,000 residential units getting registered under Karnataka RERA (K-RERA), new housing launches kept pace with the demand. Most of these registrations were by Category B and Category C builders near Attibele Road and Sarjapur Road starting from Rs 55 lakh. A few Grade-A builders, such as Sobha, Shriram Properties and DS Max Properties, contributed to the new inventory starting Rs 80 lakh.
The spike in residential launches and sales kept unsold inventory unaltered at 67,000 units, with an inventory overhang of a minimum of 10 quarters.
Key micro-markets across budget segments
| Key micromarkets | Average Capital 'Asks' | Average Rental 'Asks' | Rental Yield | |
|---|---|---|---|---|
| Within Rs 40 lakh | Bommasandra | 3,900 - 4,700 | 12 | 3.89% |
| Ramamurthy Nagar | 4,350 - 5,750 | 14 | 3.91% | |
| Rs 40 lakh - Rs 1 crore | KR Puram | 4,500 - 5,950 | 14 | 3.50% |
| Yelahanka | 5,400 - 7,000 | 15 | 3.29% | |
| Electronic City | 4,350 - 5,800 | 15 | 3.64% | |
| Rs 1 crore and above | Whitefield | 5,350 - 7,450 | 18 | 3.52% |
| Hebbal | 6,550 - 8,650 | 15 | 2.22% | |
| Marathahalli | 5,450 - 7,000 | 19 | 3.68% |
* Note: Rental Yield has been calculated for a 1,000 sq ft apartment. **Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter. ***The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments
