Bengaluru has always been a burgeoning real estate market and a preferred option for a major chunk of homebuyers who actively look to settle in proximity to their workplace. With major corporate offices coming up in the city, it would be apt to say that the IT/tech sector has strongly influenced homebuying sentiments in the city and continues to do so in spite of the dip the market has faced during the pandemic.
Reflecting on the resilient housing segment in Bengaluru, the city, unlike other top cities, gained major traction from developers throughout the year. In the last quarter of 2021, the city recorded the launch of 7,000+ new residential units, indicating the improving confidence of developers who had earlier mostly concentrated on offloading the existing inventory.
With more home buyers on the hunt for spacious units, buyer demand in Bengaluru during Q4, 2021 seemed to be in alignment with the market trends. Premium and larger homes in Bengaluru appeared to be on the mend, with 61 percent of total online searches in the last quarter recorded being for 3BHK and larger units.Taking account of the fact that most home buyers were looking for "larger homes", developers also tweaked their offerings a little, with about 70 per cent of the inventory being 3 BHK or above units.
Where Is The Demand?
The precincts, which had more land to offer and were relatively less developed, gained more traction from builders as well as buyers. About 74 per cent of the new launches were concentrated in East Bengaluru and North Bengaluru. And accordingly, major demand was concentrated in the peripheral locations of these zones, namely Hegde Nagar and Sanjay Nagar in North Bengaluru, to name a few.
However, as far as the ticket sizes were concerned, the mid-segment (Rs 60-100 lakh) continued to dominate the Bengaluru realty segment, even though a 30 per cent share of the demand was concentrated in the high-end segment.
In addition, as observed in the previous quarters, demand for independent homes witnessed a significant rise, pegged at 45 per cent of the total share in Q4, 2021.
There seems to be a conscious optimism in the market in 2021, which is expected to be carried forward to 2022. It will be interesting to see what changes developers make to their offerings in the new year to meet changing home buying demand.