Bengaluru’s luxury residential market witnessed a 31% decline in sales during Q3 2024, marking a temporary slowdown after an extended boom in residential property transactions. Analysts attribute this dip to seasonal factors like the monsoon and regulatory delays in new project approvals. However, prominent developers such as Prestige Group, Sobha, and Godrej Properties remain optimistic, banking on the festive season to revive demand. Whitefield emerged as the frontrunner in sales, followed by Bellary Road and Hosur Road, underscoring the sustained appeal of these prime locations.
New project launches also saw a 34% decline, largely due to rising land costs and delayed approvals. Despite this, key launches like Prestige Raintree Park, Brigade Valencia’s Brillio, and Sobha Infinia reaffirm the resilience of the market. Whitefield continues to dominate the luxury segment, reflecting its strategic importance as a residential and commercial hub. Meanwhile, infrastructure projects like the Namma Metro expansion and IT sector growth are expected to sustain long-term interest in the city’s real estate sector.
Despite the dip in sales, capital values and rental prices rose by 3.3% and 0.9% respectively during Q3, driven by investor confidence and end-user demand. Rising construction costs and limited inventory also contributed to price appreciation. The rental market is witnessing increasing traction in areas close to office hubs, further boosting Bengaluru’s real estate potential.
From a sustainability perspective, developers are exploring eco-friendly practices to align with growing environmental concerns. Projects in Whitefield and other emerging submarkets are integrating green building designs and energy-efficient features, appealing to environmentally conscious buyers. As the festive season approaches, industry experts predict a resurgence in the market, with enhanced home ownership preferences and promotional offers shaping the next phase of growth in Bengaluru’s luxury housing segment.