Bengaluru has largely been a mid segment residential market driven by the IT sector growth. Rise in income levels over the last decade resulted in changing buyer preferences and shift in demand for upper-mid and premium housing projects.

• Post Covid from 2021 onwards the city witnessed a fast revival in its launches and sales momentum, with the sales volume being at par or even higher than the launches. This has resulted in a sharp decline in the city’s unsold inventory by end 2023, a characteristic that is quite typical of Bengaluru’s residential market. This drop in unsold/available inventory creates space for higher launches in the city amid rising housing demand.
• Along with launch and sales growth, residential capital values recorded a noticeable increase led by hike in land prices as well as input costs. This price growth across though resulted in a shift in the project ticket sizes from mid to upper-mid and to premium segments, healthy demand momentum in these segments resulted in steady sales despite upward price movement.
• Post -COVID, pricing in the upper-mid, premium and luxury segments picked up the most since new homebuyers showed preference towards larger spaces. Prices in the affordable and mid segments underwent a slow upward movement. Premium housing segment which has been observing a steady rise in capital values post-2019, continued to witness the same.
• While Bengaluru’s residential sector has been largely dominated by condominiums, year 2020-2021 witnessed a sudden rise in share of landed house launches and sales in overall city numbers. With a section of home buyers showing preference for landed projects even though in city suburbs over high-density housing condos and distance from city centre being no more a concern due to remote work options, the share of landed houses saw a sharp rise. • The affordable and mid segments which have been accounting for around 35-40% of the city’s residential market activity, witnessed a drop in demand during 2020. However, both these segments picked up pace since 2021 with sales being at par or higher than launches, resulting in lowering unsold inventory. The upper-mid segment which over the years has seen steady unit launches and sales (except a lull in 2020), recorded a sudden spike from 2021 onwards with demand for larger homes being on the rise post Covid.
• At the city level, there was limited launch activity in the premium segment pre-COVID. However, from 2022 there has been a sharp rebound in new supply owing to rising demand for premium category projects of larger sizes from end users. Luxury segment, which had recorded lower launches and higher sales during 2018-2019, continued to witness the same trend in post Covid years, resulting in a steady drop in unsold inventory.