Real Estate In Bangalore On Cooldown After Major Uptick
Bangalore real estate market is experiencing a sudden cooldown after significant growth. Sales and rental inquiries are now declining, but experts predict a stabilization and potential for future growth in specific areas in the future.
Sales DownturnBangalore's residential market saw a notable sales downturn in Q3 2024. There were 15,000 housing units sold, with an 8% decrease when compared to Q2 2024 and Q3 2023. Rents have now decreased in desirable areas like Koramangala and Indiranagar. Owners are now compromising on rental values. There is a 5%-10% decrease in prime areas in 2025.
Factors Contributing to the Bangalore real estate cooldown:- Increased Choices: Many new projects have led to more choices for tenants. It has put a downward pressure on rents.
- Economic Factors: Economic factors play a major role in the real estate market cooldown.
Many flats in the Projects have slowed by 5 to 10%, with rentals in areas near desirable sites staying flat since the previous quarter. The third quarter (Q3) saw a quick decline in sales. About 15,000 houses were sold, which shows an 8% decrease from Q2 to Q3.
Sales in Various zones of Bangalore- East Bangalore: East zone of the city dominated the housing market of the city. It maintained its grip in Q3, accounting for 48% of the sales. The area recorded a quarterly drop in volume of 18%.
- North Bangalore: A decline in sales was there in the North zone of the city. It holds a 26% market share. Compared to the previous quarter, there was a 6% decline in sales.
- South Bangalore: South zone of the city showed firmness in quarterly sales volume growth of 13%.
- West Bangalore: West zone of the city saw a 33% rise in sales over the previous quarter. It has a less market share of 4%.
After fast expansion in the last years, the real estate market has experienced a cooling, which is showing a natural market correction. Prices have lowered as a result of buyers' increased caution. The demand is still stable due to the city's IT sector.
Despite the current cooldown of the market now, Bangalore real estate is expected to stabilize over time in the coming years. The real estate market will grow fast as the IT boom will continue and the transport network will also develop. The expansion of the metro will improve the transport network, and prices will increase. It will give long-term growth as there is a robust economy and increasing urbanization in Bangalore.
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