Driven by government policies and infrastructural development, the demand (listings) for residential real estate in Bengaluru increased 3.7% QoQ, revealed the latest Magicbricks PropIndex report for Q1 (Jan-Feb-Mar) 2022. Further, new residential launches in emerging peripheral localities increased supply (listings) by 1.4% QoQ.
Commenting on the PropIndex report, Sudhir Pai- CEO of Magicbricks, said, “Across India, increasing project completions, attractive offers from developers, supportive policies and improving employment opportunities have boosted buyer-confidence in the real-estate industry. We expect the momentum gained so far to continue across demand and supply backed by new launches tailored to the evolving needs of consumers and all-time low home loan interest rates.”
Other highlights from the report
- Demand for 2 and 3 BHK configurations continued to dominate in Q1 2022, constituting 79% of the total demand and 81% of the total supply.
- Premium residential properties (more than INR 7,000 psf) constituted 33% of the total demand.
- RM (ready to move) segment witnessed a QoQ price increase of 1.2% and the “UC segment witnessed QoQ price decline of 0.2%.
- Premium UC properties witnessed 3.7% QoQ price appreciation in >INR 7,000 psf segment, while affordable RM properties increased 1.5% QoQ in <INR 5,000 psf segment.
The approval of Peripheral Ring Road connecting Tumakuru Road with Hosur Road is likely to increase demand for residential projects in the surrounding eastern & western neighbourhoods of Bengaluru city.
The report further predicts an onward trajectory for 2022 for pan India real-estate industry, due to external stimuli such as digitisation of land records, increased allocation of INR 48,000 crores under PM Awas Yojna and PM Gati Shakti, that are expected to further strengthen infrastructure and boost investments in the real estate sector