Team Opulnz Abode: 17-01-2025, 08:04: Read Time – 2mins
Bengaluru, widely regarded as India’s IT hub, has experienced an 81% drop in luxury housing sales in 2024, making it the only major city in the country to witness such a decline. According to a report by CBRE, sales of luxury housing units priced at ₹4 crore and above fell sharply, highlighting a unique trend in an otherwise growing segment of India’s real estate market.
1. Luxury Housing Sales: A Sharp Decline
Key Statistics
- Sales Volume: Bengaluru saw only 50 luxury units sold in 2024, compared to 265 units in 2023.
- January-June 2024: A mere 10 units priced above ₹4 crore were sold, compared to 200 units during the same period in 2023.
- National Context: The top seven cities, including Mumbai and Delhi, recorded a 53% annual growth in luxury housing sales, increasing from 12,895 units in 2023 to 19,700 units in 2024.
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2. Understanding Bengaluru’s Decline in Luxury Sales
Limited New Launches
- Rising land and construction costs have led to fewer luxury housing launches.
- Due to stronger demand and higher affordability, developers are shifting their focus to mid-end and premium segments (₹2-4 crore range).
Oversupply in Luxury Inventory
- Local brokers report a 20% drop in luxury housing queries compared to 2023, indicating potential oversupply in the market.
- While demand for premium units remains steady, unsold luxury inventory has created a challenging environment for new launches.
Shifting Buyer Preferences
- High-net-worth individuals (HNIs) and expatriates continue to seek exclusive living spaces. Still, they are increasingly selective, focusing on location, amenities, and value for money.
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3. Defining Luxury Housing in Bengaluru
Ticket Sizes and Locations
- Luxury Housing: Typically defined as units priced above ₹4 crore.
- Popular areas: Koramangala, Whitefield, Sadashivanagar, and North Bengaluru.
- Premium Housing: Priced between ₹2 crore and ₹4 crore, thriving in neighbourhoods like Indiranagar, JP Nagar, and select pockets along the Outer Ring Road.
Amenities and Offerings
- Peripheral Locations (e.g., North Bengaluru): Larger villas and apartments featuring sprawling clubhouses, swimming pools, and expansive parking spaces.
- City Center (e.g., Koramangala, Indiranagar): Smaller but premium interiors and strategic proximity to business districts.
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4. Insights from Industry Experts
Demand for Budget and Premium Housing
- Brokers observe rising demand for budget homes priced between ₹1 crore and ₹2.5 crore, which appeal to a broader audience.
- Premium housing continues to thrive in areas with strong connectivity and modern infrastructure.
Sustained Luxury Demand
Despite declining sales, demand for luxury housing remains resilient due to Bengaluru’s growing base of HNIs, senior executives, and expatriates.
Developer Strategies
- Developers are leveraging local dynamics by tailoring offerings to meet the needs of different home buyer segments.
- Projects with value-driven amenities are gaining traction, especially in emerging micro-markets like Devanahalli.
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5. Comparing Luxury Housing Trends Across India
While Bengaluru’s luxury housing market faces challenges, other cities are witnessing robust growth:
- Mumbai: Strong sales of high-end apartments are driven by limited land availability and high demand.
- Delhi-NCR: Thriving luxury market in areas like Golf Course Road and South Delhi, supported by HNIs and expatriates.
- Hyderabad and Pune: Gaining momentum with competitive pricing and improved infrastructure.
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6. Opportunities for Bengaluru’s Luxury Market Recovery
Improving Inventory Management
- Developers should focus on clearing existing inventory before launching new projects.
- Tailored offerings with unique value propositions could reignite buyer interest.
Strategic Pricing and Design
- Competitive pricing aligned with market demand is essential.
- Projects emphasizing sustainable living and customized layouts could attract discerning buyers.
- Enhanced Marketing Strategies
- Highlighting the superior quality and exclusivity of projects in premium locations.
- Leveraging partnerships with real estate consultants like Opulnz Abode to reach targeted audiences.
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- Conclusion: A Market in Transition
- Bengaluru’s 81% decline in luxury housing sales in 2024 reflects the need for strategic adjustments in the city’s high-end real estate market. While rising costs and oversupply persist, the demand for quality housing among HNIs and expatriates remains robust.
- Realty developers must adopt a balanced approach, focusing on clearing inventory, offering value-driven designs, and catering to the preferences of modern buyers. As Bengaluru continues to evolve, the luxury housing market holds the potential for a strong rebound in the coming years.
- Discover Tailored Real Estate Solutions with Opulnz Abode
- Navigating Bengaluru’s dynamic real estate market requires expert guidance. At Opulnz Abode, we provide personalized consultations and insights into luxury and premium housing opportunities. Whether you’re seeking a villa in Devanahalli or a high-end apartment in Koramangala, we’ll help you find the perfect home.
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- Contact RealtyzEstate today to explore Bengaluru’s finest properties! Source: https://www.msn.com/en-in/news/India/bengaluru-sees-81-drop-in-luxury-housing-sales-cbre/ar-AA1xhBu9?ocid=msedgdhp&pc=U531&cvid=d6576db102d5433690a1b0d4c5129f9d&ei=28
