Bengaluru Real Estate Prices Expected To Soar By 10% In Prime Locations And Tech Corridors By 2024-End

The Bengaluru real estate market is expected to witness a significant growth in 2024, according to a recent report by ANAROCK. The report predicts that the city's residential project launches and sales will rise by 10-15% by the end of 2024 compared to 2023.

The report also forecasts that the average capital values in Bengaluru will experience a moderate appreciation of 10% across the city, with prime locations and established tech corridors potentially experiencing steeper growth. This growth is driven by the increasing demand for co-living spaces and eco-friendly homes, which are emerging trends in the sector.

On the office front, ANAROCK expects new office supply to decline by 4% in the calendar year 2024 compared to 2023, while net office absorption is expected to rise by 10%. Average office space rentals are expected to witness a marginal rise of 1% across the city.

The report also highlights that the city's available inventory has declined by 30% since 2019, with the inventory overhang falling to a record low of 8 months by the first half of 2024. This decline is attributed to robust new supply added in the city since 2019.

ANAROCK's Regional Director and Head of Research, Dr. Prashant Thakur, commented that Bengaluru saw a significant year-on-year (YoY) jump of 32% in average property prices from Rs. 5,900 per sq. ft. in H1 2023-end to Rs. 7,800 per sq. ft. in H1 2024-end. He attributed this growth to increased new launches in Bengaluru's premium and luxury segments in H1 2024.

The report also notes that the premium segment dominated new launches in H1 2024 with a 39% overall share, while the luxury segment accounted for 36% of total residential assets share.