The housing sales in the country witnessed an astonishing jump of 13% Q-o-Q to more than 70,000 units in Q1 2022. The housing sales rebounded, an approximate 40% Y-o-Y, as the residential sector remains poised for unprecedented growth.
According to the CBRE report, at 27%, the affordable/budget segment’s share in sales remained stable in Q1-2022 compared to Q4- 2021. The sales in the high-end category accelerated to 23% in Q1- 2022 as opposed to the 16% in Q4-2022. The mid-end category, however, dropped to 41% in this quarter. The premium housing segments also witnessed slight growth in sales on a Q-o-Q basis.
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What is the CBRE Report?
The CBRE report is published by CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm.
At the CII Annual Real Estate Conference- – ‘Reinvigorating the Real Estate Industry in 2022 & Beyond’ held in March 2022, the firm released its Real Estate Market Outlook 2022-India report. The CBRE report called attention to the fact that cities in the western part of the country drove sales and unit launches. Pune led the housing sales in Q1 2022 with a 27% share, followed by Delhi-NCR with 21%, followed by Mumbai and Bangalore at 20% and 14%, respectively. Regarding unit launches, Pune led among cities with a 29% share, followed by Mumbai and Hyderabad at 22% and 20%, respectively.
As per the report, in the face of the continued cyclical escalation and relaxation of COVID-19, the Indian real estate sector has remained irrepressible and resilient. The sector is showing signs of an upswing in India’s robust position as a driver of the global economy and encouraging growth projections across all segments.
Housing Sales in Bangalore
Despite Covid-19’s third wave, the sales of residential units in the country's top eight cities in the 1st quarter of 2022 have registered an increase of 9 percent year-on-year to reach a 4-year quarterly high of 78,600 units. Out of which 13,663 units are from Bangalore, an impressive YoY growth of 34 % in the first 3 months of the year.
The Silicon Valley of India is bustling with career opportunities; the city provides great academic and medical centres too. Adding to the allure of Bangalore, the perfect weather acts as the cherry on top. So, it is propounded that Bangalore’s real estate market demonstrates massive demand for property, and the demand is growing increasingly, day by day.
Although our country witnessed three significant Covid-19 waves, the real estate industry in Bangalore never failed to amaze people. In 2020 Bangalore’s real estate industry witnessed a growth of 33%, from 24,910 units in 2020 to an exciting 33,080 units in 2021 in housing sales. It is also to be noted that the real estate market in Bangalore proved to be very successful because the city saw a 43% growth in new launches in the real estate market. Bangalore added an approximate 30,650 units in 2021.
The CRBE highlights that NCR and Bangalore are ahead of the curve, and together they account for approximately 54%.
In Bangalore, the report mentioned that the businesses in the city saw an increase in the previous year, thus leading to financial security and growth in wealth accumulation.
“This confidence is adequately apparent in how the residential markets have behaved, with demand and supply rising. In Q1 2022, the city registered a record sale of 13,663 units, a 34% YoY growth. In tandem with demand, the residential supply remained robust in Q1 2022 with 10,106 launches, a ten-quarter high,” the report highlighted.
This is perhaps why the world saw a decline in property rates, cities like Bangalore and the NCR sustained their real estate market, and the industry kept seeing a boom.
Bangalore’s Housing Market Predictions
As the Covid-19 pandemic slowly recedes, it is not unlikely that the real estate market in Bangalore in 2022 will witness an increasing growth in housing sales, new launch products, construction of new buildings, and renting of properties.
With launch projects resuming back to square one, there is a demand for people looking to own their own homes, and developers and builders are stepping up to meet the demand. The Indian government also introduces incentives like stamp duty cut schemes to attract potential buyers. So, buyers may witness various trends popping up in 2022 in the real estate industry in Bangalore. Grade-A developers very perceptibly receive more market shares, and the sales will likely return to the pre-pandemic market of 2019. The Bangalore real estate prices of property will generally accelerate due to the input cost pressure and supply chain issues. The property price may rise by 5-8% in the city.
Why Should Bangalore be Your Next Prospective Property Investment?
Solid infrastructure, ease of connectivity, bustling career opportunities, and impeccable education and medical centres make Bangalore an alluring option if you want to invest in property. The factors mentioned above are significant advantages if you’re willing to invest in property investment. The property appreciation value relies on the city’s upcoming amenities.
Bangalore’s solid and practical plan for curbing the pandemic’s influence on its real estate market has, without a doubt, opened up new avenues for growth in the sector. The real estate industry in Bangalore has been unremittingly recovering without compromising on giving opportunities to buyers to purchase their dream homes. Considering the city's growth in the real estate market, it is needless to say that Bangalore has sailed safely through the Covid-19 pandemic. This gives sufficient assurance to potential buyers to make their investments and feel optimistic about attaining a positive return on investment.