Priyatham Kumar, Founder and CEO, Homes247.in
Bengaluru (Karnataka) [India], January 12: The residential real estate market in Bengaluru continued to show strong growth in the fourth quarter of 2023, despite challenges posed by the sluggish economic growth. As per the latest research by research by Cushman & Wakefield, Q4 observed a sustained momentum with a 24% q-o-q and 10% y-o-y growth in launches, totaling over 34,300 units for the year defying all expectations and painting a vibrant picture of growth and resilience. This article delves into the key factors driving this upsurge, explores its implications for the future, and analyses the trends shaping the Bengaluru real estate landscape.
What are the key factors contributing to unparalleled real estate growth?
Priyatham Kumar, CEO of Homes247 says “The significant rise in the residential market can be attributed to the growing demand for homes after the pandemic, and the return of confidence in the market. Some of the highly contributing factors owing to the growth are discussed below.”
Flexible and Attractive Payment Options: The unlocking of the economy and the gradual return to normalcy have boosted consumer confidence and resulted in an uptick in sales. The availability of attractive discounts, flexible payment options, and low-interest rates on home loans also played a significant role in driving demand in the Bengaluru residential market.
Upsurge in Employment: The demand for housing in the city has been driven by the IT sector, as Bengaluru is one of the top technology hubs in India. With the continuous growth of the IT industry, there has been a rise in employment opportunities, leading to an influx of young professionals and migrants from other cities. This has created a strong demand for residential properties, especially in areas close to the technology parks and business districts.
Government Policies: The government’s supportive policies such as the strict implementation of the Real Estate Regulatory Authority have also played a crucial role in maintaining the momentum of the Bengaluru real estate market. These measures have increased transparency and accountability in the sector, making it more attractive for investors.
Luxury Takes Center Stage: High-end and luxury projects dominated the Q4 launches, accounting for an impressive 23%. This caters to the evolving aspirations of a maturing homebuyer segment seeking premium living experiences.
What are the significant drivers of the boom?
- Economic Rebound: India’s post-pandemic economic recovery has boosted disposable incomes, particularly in the tech sector, which forms a substantial segment of Bengaluru’s population. This increased purchasing power translates into higher demand for homes.
- Evolving Homebuyer Preferences: The post-pandemic scenario has reshaped buyer priorities, with increased emphasis on spacious living, work-from-home functionality, and access to green spaces. Developers are adapting to these preferences, offering innovative projects that cater to the modern lifestyle.
- Investment Portfolio: Bengaluru’s real estate market offers attractive returns for investors, making it a safe and lucrative option for both domestic and international players. This sustained investor interest injects valuable capital into the market, fueling further growth.
Future Outlook: Will the Momentum Continue?
Priyatham Kumar further adds “The market is expected to stay optimistic even in 2024. While some headwinds like rising interest rates and inflation need to be monitored, strong fundamentals like a robust economy, growing population, and evolving buyer preferences are expected to propel the market forward. The continued focus on premium projects, coupled with the development of peripheral areas, will ensure a diverse and thriving market for years to come.”
Bengaluru residential market maintained a strong pace in the fourth quarter of 2023, driven by significant factors. The market is expected to continue its upward trend, making it an attractive destination for both homebuyers and investors. With the government’s continued focus on infrastructure development and evolving housing requirements, Bengaluru is expected to maintain its position as one of the top real estate markets in the country in the coming years.
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