Bengaluru has always been a rather unique real estate market. Heavily driven by
IT/ITeS industries, it is nevertheless a city where most of the housing demand
comes from end-users. The absence of more investors has historically kept the lid
on housing price increases.
It is also a city which, despite its dynamism, remains deficient in terms of public
transport and road infrastructure. Nevertheless, compared to its other southern
counterparts Chennai and Hyderabad, Bengaluru has so far had several
advantages as far as housing activity is concerned.
Residential real estate
Despite the pandemic, the city saw property prices rise by 2% – from Rs 4,975 per
sq. ft. in Q1 2020 to Rs 5,060 per sq. ft. in Q1 2021. This was the highest price rise
among the top 7 cities, and it happened primarily because the city continued to
see steady growth in housing sales q-o-q.
Amidst restricted new supply, Anarock data reveals that Bengaluru saw total sales
of approx. 8,670 units in the first quarter of 2021, while its unsold inventory
declined by 7% in a year – from approx. 62,800 units in Q1 2020 to approx. 58,350
units in Q1 2021.