Despite global economic headwinds, including layoffs by several large and small corporates, the bull run in the Indian housing market continued in the first quarter of the year. Owing to a rise in prices of construction raw materials and demand, Bangalore recorded the highest 9 percent annual jump in average residential property.
On the back of soaring rentals, Bengaluru residents are advocating the purchase of a house versus renting it. However, switching to home purchase involves dwelling upon the home loan EMIs, which may rise henceforth given the expectation of a pause in interest rate hikes by RBI.
Within Bengaluru, Thanisandra Main Rd & Marathahalli-ORR is witnessing the highest residential rental growth for a standard 2BHK home of 1,000 sq. ft. area. Sarjapur Road is another prominent locality with 20 percent in average monthly rent growth. Interestingly, in light of rising housing demand, Bengaluru has surpassed Mumbai, an eminent residential market of India in terms of earning rental yields.
Despite global economic headwinds, including layoffs by several large and small corporates, the bull run in the Indian housing market continued in the first quarter of the year. Bangalore witnessed 13,560 units of new launches in Q1 CY2023, rising 42 percent compared with Q4CY2022. About 74 percent of new supply was added in the mid-range and premium segments, i.e., the Rs 40 Lakh to Rs 1.5 Cr price bracket. Also, the city witnessed 32 percent rise in housing sales during the same period. Owing to a rise in prices of construction raw materials and demand, Bangalore recorded the highest 9 percent annual jump in average residential property, according to Anarock. The residential rents in prominent markets in Bengaluru are expected to rise further between 5 to12 percent in remaining quarters of CY2023.
Bengaluru is a technology hub of India, with ample work opportunities to tech enthusiasts and a hotbed of start-ups. The city is also among the top locations to witness an increase in apprenticeship engagement with 80 percent of employers in this city likely to increase the engagement of apprentices. This provides ample opportunities for apprentices to gain industry-specific skills and knowledge, while contributing to the growth of the technology sector, according to a report by TeamLease.
Nifty Realty index rising 7 percent this calendar year (till date), is indicative of the strong ongoing housing demand. Various realty players like Oberoi realty, Godrej Properties, Macrotech Developers and Sobha reported their lifetime high in residential sales in Q1 CY2023.
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