In Bengaluru, sales of upscale residences valued at over Rs 1.5 crore witnessed an impressive 142% surge during the initial nine months of the current calendar year. Remarkably, a total of 9,220 luxury homes changed hands in the city between January and September this year, representing a significant increase from the 3,810 homes sold during the corresponding period in 2022. These statistics, based on data provided by Anarock, a prominent property consultancy firm specialising in luxury home sales across seven major cities, including Bengaluru, underscore the robust growth in the luxury housing market.
By the end of September, the cumulative sales of units across the seven cities reached 84,400. Notably, among the major urban centres, Hyderabad experienced a substantial surge of 260%, while Chennai recorded a notable 143% increase in sales. On the flip side, well-established markets such as Mumbai (MMR) and the National Capital Region (NCR) documented relatively stable and consistent growth.
Statistics indicate that in the first nine months of 2023, around 350,000 housing units were exchanged within the boundaries of these seven cities. Remarkably, 24% of this total, which amounts to roughly 84,400 units, constituted luxury residences valued at over Rs 1.5 crore. Specifically, Bengaluru witnessed the sale of around 47,100 units across various budget categories in the same time frame, with luxury homes accounting for 20% of this total.
Numerous real estate agents, as well as some real estate firms interviewed by TOI, reported a growing preference for spacious homes among individuals who adapted to remote work during the Covid-19 pandemic. Moreover, the rising rental expenses are pushing more individuals to shift from renting residences to acquiring homes.
Kishore Jain, who serves as the chairman of the Confederation of Real Estate Developers' Association of India (CREDAI) in Bengaluru, has noted a substantial demand for luxury homes in the city, driven by several factors. He highlighted that before the onset of the Covid-19 pandemic, 2BHK homes were the favored option, but there has been a noteworthy change in this pattern. Currently, there is a robust demand for spacious and upscale residences, leading to the successful sale of all such properties offered by builders, while 2BHK homes are finding fewer takers.
Jain observed that in the post-Covid-19 era, the general public has come to recognize the significance of homeownership. Modern home seekers prioritize residences offering all-encompassing amenities, including dedicated workspaces, gardening areas, and home theaters. This shift has led to a discernible uptick in the demand for luxury homes, resulting in heightened sales in this category.
As per the biannual report by property technology firm No Broker, a notable trend in Bengaluru and Chennai is the growing inclination towards larger living spaces, with a substantial 27% of individuals actively seeking more expansive homes.
The demand for 3 BHK units is consistently surpassing the demand for 2 BHK units. The No Broker report highlighted that with home loan equated monthly instalments (EMIs) approaching rental rates, approximately 65% of tenants are contemplating property purchase this year. This pattern indicates a optimistic perspective on the stability and expansion of the real estate market.
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