The second wave of COVID-19 and the ensuing lockdown during the April-May-June (Q2, 2021) dented the demand for residential real estate in Bengaluru by 25% but prices remained resilient and appreciated marginally by 1% during the period, reveals the latest Magicbricks PropIndex.
Rajaji Nagar, RMV Extension Stage 2, Haralur Road, JP Nagar Stage 6, and Konankunte are the prominent localities that have seen an increase in property prices during the quarter. Ready-to-move properties saw a YoY dip in prices by 0.3%, the QoQ prices improved by 0.3%. Buyers were also observed to favour under-construction properties as prices showed a 2.9% QoQ and 3.1% YoY increase.
The PropIndex also indicates that the demand in Bengaluru residential market reflected an increased preference for properties in more than INR 7,000 per sq ft, holding a market share of 39% in Q2 2021, as against 36% in Q1 2021. Accordingly, the demand was mostly concentrated in 2 and 3BHK configurations, together contributing to 88% of the total searches in the city. The 3BHK configuration dominated the residential market accounting for around half of the total demand (consumer preference).
Commenting on the PropIndex report, Sudhir Pai, CEO, Magicbricks, said, “Unlike the first wave, the recovery in demand for residential real estate has been faster in the second wave. The residential markets of Bengaluru, Chennai, Thane, Noida-Greater Noida, Kolkata, and Delhi witnessed price corrections ranging from 1%-2.3% during the quarter that also saw rising medical expenses and debt. Bengaluru is one of the few markets in the country where the premium segment continues to do well even during restrained real estate activity. Schemes by the developer such as flexible payment offers, no Pre-EMI options, and low booking amount, can potentially convert fence-sitters into potential buyers. Further, the state government’s assistance to property taxpayers during the lockdown that extended a 5 % property tax rebate till June 30, brought in a positive sentiment in the city.”
The PropIndex Report also revealed that the inauguration of the green line metro service from Yelachenahalli to Silk Institute in Q1 2021, had increased the demand for the properties in the price range INR 5,000-6,000 along Kanakapura Road in Q2 2021.
The propensity of demand was found concentrated in well-connected localities such as Whitefield, Sarjapur Road, and Bellary Road, which have consistently ranked high in terms of searches in recent quarters. Rajaji Nagar, RMV ExtensionStage2, Haralur Road, JP Nagar Stage6, and Konankunte among some have been prominent localities that have seen an increase in property prices.