Why Did Demand in Bangalore Real Estate Residential Increase Post Covid
Despite the pandemic, property values in the city increased by 2%, from Rs 4,975 per square foot in Q1 2020 to Rs 5,060 per square foot in Q1 2021. The top 7 cities’ price increase was primarily due to the city’s ongoing, q-o-q, consistent expansion in housing sales.
Anarock data shows Bengaluru saw total sales of around 8,670 units in the first quarter of 2021, while its unsold inventory decreased by 7% over a year, from approximately 62,800 units in the first quarter of 2020 to about 58,350 units in the first quarter of 2021.
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Bangalore’s Residential is In High Demand
Bangalore is renowned for its elegance, opulent modern lifestyle, and top-notch living amenities. In every area of life, people are searching for comfort and elegance. Many people view posh luxury living as a status symbol and are willing to spend money on it even when it comes at a great cost.
The mid-and low-segments are driving residential demand in Bengaluru. Developers thought it was appropriate to raise the average prices in light of the strong sales. The city’s real estate prices had also been range-bound for the previous few years, and expansion was long needed.
Sadly, the decrease in stamp duty in Karnataka announced in March 2021 only applied to properties priced between Rs 35 lakh and Rs 45 lakh. This reduction has not significantly increased Bengaluru’s house sales in the same way it has in Mumbai and Pune.
The Bangalore Development Authority may soon collaborate with developers to use its enormous land parcels for house development. The kind of projects to be created will determine how much this will aid the city. Government land is primarily available to construct affordable houses in states like Maharashtra.
The Future Outlook
Bangalore’s residential real estate market made a significant recovery in the first quarter of 2022 on both the supply and demand sides. The third wave of the pandemic’s development in January 2022 caused a minor decline in site visits, followed by a temporary limitation on mobility. However, starting in February 2022, the holidays began to go up quickly again. Bangalore’s sales volume significantly increased throughout the quarter under investigation. Fourteen thousand housing units were sold in the city, representing an increase of more than 30% annually.
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Prospective homeowners favoured large apartments with three bedrooms between 1,200 and 1,500 square feet in the northern and eastern quadrants of the city. While residential units remained popular, some home buyers preferred plot developments and farmlands priced between Rs 60 and Rs 80 lakh. The average price of real estate was revised upward by 1% in Jan-Mar 2022 compared to Oct-Dec 2021 due to steady demand for residential units.