Housing sales in Bengaluru dipped slightly in the first quarter of 2024. Highlighted in a report by Knight Frank, the city shows a major decline in the affordable segment. Why? The entire city is facing a major water crisis. From daily chores to consumption, everything seems like a major task in Bengaluru.
Bump on Real Estate
Every year, overall sales were down 2%. They dropped from 13,390 units to 13,133 units in the same period last year. The most significant drop was in the under ₹50 lakh category, which saw a decline of 65% to 70%. Sales in the ₹50 lakh to ₹1 crore segment dipped by 7%.
“The water crisis should not have too much of an impact on the housing sales trajectory,” said Shishir Baijal, chairman and managing director of Knight Frank India. However, the decline in affordable housing sales makes up a different story. They suspect that it may be deterring some buyers.
Interestingly
Despite the water woes, sales of luxury apartments (over ₹1 crore) increased by nearly 50%. This indicates continued strong demand for high-end properties in Bengaluru. The report also highlights Bengaluru’s booming office market, with office space transactions reaching 3.5 million square feet in Q1 2024. The city also witnessed a surge in office completions. It grew by 275% in the last year.
The real estate market constitutes a significant portion of the national total money flow. Thus, such major fluctuations can significantly dent India’s overall GDP growth.
