Bengaluru’s residential market sees price drop, majority of sales under Rs 1 crore

Bengaluru’s residential real estate market witnessed a slowdown during the July-September 2024 quarter, with average home prices dipping to Rs 62 lakh, a 7% decline compared to the same period last year. According to data analyzed by Square Yards, 25,259 residential units, including apartments and plots, were registered with the Inspector General of Registration (IGR) during this quarter, marking an 8% decrease in sales volume year-on-year.

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The total sales value for these transactions stood at Rs 15,739 crore, reflecting a 15% drop compared to the July-September 2023 period. Analysts attribute this decline to a natural market adjustment following a phase of rapid growth earlier in the year.

Commenting on the market trends, Sopan Gupta, Principal Partner at Square Yards, reportedly said, “The slight moderation in Bengaluru’s residential market reflects a phase of consolidation. However, with the upcoming festive season, we anticipate a rebound in demand, driven by end-users and investors alike. Infrastructure developments, such as the ongoing metro network expansion and increasing office space uptake, are expected to sustain positive momentum in the market.”

Notably, 86% of property transactions during the quarter were in the sub-Rs 1 crore segment, indicating robust demand in this price range. Transactions in the Rs 1-2 crore bracket accounted for 8% of total sales, while premium properties above Rs 2 crore formed a smaller share of the market.