Residential property demand in Bengaluru up by around 6 percent during festive season

Festive season sales provided an impetus to the Bengaluru real estate market

Demand for residential property in Bengaluru during the festive season of 2024 witnessed an uptick of around 6 percent.

According to data from Magicbricks, the demand for housing during the festive season between October 16 and November 15 increased 5.97 percent over the September-October period.

This uptick is attributed to homebuyers leveraging festive discounts, exclusive offers, and favourable market sentiment to invest in properties.

Real estate experts said that further, the festive period has underlined the growing appetite for premium housing, coupled with the market's steady expansion, affirming positive trends in the residential real estate sector.

The data also showed that Bengaluru's residential supply grew by 17.5 percent quarter-on-quarter (QoQ). and 55.11 percent year-on-year (YoY) during this period. Historically, the city observes a 6-7 percent uptick in sales in the year's final quarter (Oct-Dec 2024), a trend expected to persist.

"Traditionally, residential demand would taper off in December following the festive season. However, over the past 2-3 years, the aspiration for homeownership has remained robust, with prospective buyers actively seeking their dream homes year-round,” Sudhir Pai, CEO, Magicbricks, said.

Further, Magicbricks data observed that between July and September 2024, supply of under-construction properties in Bengaluru increased 114 percent YoY and 27.39 percent QoQ, with highest increase in Varthur and Thanisandra Main Road (87 percent), Sarjapura and Sarjapur Road (67 percent), and Yelahanka and Whitefield (58 percent).

Market data showed that Bengaluru accounted for a significant 17.5 percent of new housing launches across India's top seven cities in the third quarter of 2024. The city reported a 7 percent increase in new launches YoY.

The third quarter of 2024 witnessed a strong preference for high-end residential properties in Bengaluru. The high-end segment experienced a 10 percent QoQ growth and accounted for 54 percent of the city's new launches.

East Bengaluru accounted for 35 percent of all new launches while West Bengaluru, which had seen limited activity in Q2 2024, reported a surge in new launches, reaching nearly 1,000 units in the third quarter of 2024.

Angad Bedi, Chairman & Managing Director of Bengaluru based BCD Group, said that the recent Magicbricks report confirms that Indian festivals play a substantial role in boosting the country's real estate sector.

He said that the 5.97 percent increase in Bengaluru's residential demand during this festive season demonstrates the impact of positive market sentiment driven by attractive offers, financial incentives, and the increased demand for luxury housing.

“Buyers get motivated by favourable loan schemes, discounts, and flexible payment plans offered during the festive season, which leads to significant residential transactions.

Additionally, developers also tap into the festive sentiment by launching projects, especially in the mid-range and affordable segments, during the festivities to capitalise on the increasing housing demand,” Bedi told Moneycontrol.

He added that festive sentiments combined with favourable government policies, have accelerated decision-making among buyers, thus turning inquiries into transactions faster than in previous years.

Additionally, the increase in supply, as indicated in the report with 17.5 percent QoQ growth, reflects the segment's response to increasing buyer interest. These trends reveal that festive seasons in India are more than just opportunities to buy a home. They are also opportunities to make smart investments, he said.