In a surprising turn of events, Bengaluru has distinguished itself as the only major Indian city to experience a decline in the sales of luxury homes priced ₹4 crore and above during the first half of 2024. This deviation from the national trend was highlighted in a recent report by property consultancy CBRE.
Karnataka’s capital city saw a significant drop in the sale of luxury residential units, with only 10 units sold in the January-June period of this year, compared to 200 units sold during the same period in 2023. This stark contrast comes amidst a broader national rise in demand for high-end real estate.
Ram Chandnani, Managing Director, Advisory and Transactions, CBRE India, suggests that this dip may be temporary and primarily due to a reduced supply of luxury housing in the city during H1 2024. He anticipates an uptick in sales in the latter half of the year, coinciding with the festive season, which traditionally spurs real estate transactions.
While luxury home sales have faltered, the mid-segment housing market in Bengaluru has shown robust performance. According to a Knight Frank India report, homes priced between ₹50 lakh to ₹1 crore accounted for 43% of the total 27,404 units sold in the city during the first half of 2024. This data underscores the strong demand for more affordable housing options in Bengaluru.
The decline in luxury home sales in Bengaluru, despite the national trend of rising demand, reflects the city’s unique market dynamics and underscores the importance of supply in driving sales. As the festive season approaches, it will be interesting to see if the luxury housing market in Bengaluru can rebound and align with the broader national trend.