While Mumbai is synonymous with the uber luxury property segment in India, high-end residential units have seen growing demand in Bengaluru of late. With rising aspirations amid robust economic growth, the city is witnessing an increasing number of takers in the ultra-luxury housing market with the sale value of some homes priced at as high as ₹50 crore.
Mumbai and New Delhi have recorded an annual increase in their real estate prices at 13% and 10.6% respectively, while Bengaluru has witnessed a modest 3.7% rise. Globally, Manila has topped the Knight Frank’s Prime Global Cities Index with an increase of 26%.
The Indian real estate market is undergoing a seismic shift, driven by changing buyer preferences, an expanding economy and ambitious infrastructure projects. This dynamic landscape presents challenges and immense opportunities for developers and homebuyers.
Market dynamics: The Surge in residential property prices
Almost 2000 under construction housing projects totalling over 5 lakh units across 44 cities have been stalled on account of financial mismanagement by real estate developers and lack of execution capabilities, an analysis by data analytic firm PropEquity showed on August 15.
The Pune real estate market saw a 25% year-on-year (YoY) increase in property registrations in July 2024 with 13,314 properties being registered as against 10,614 in the same period a year ago, according to the data shared by Maharashtra government’s Department of Registrations and Stamps – the Inspector General of Registration and Controller of Stamp (IGR).
The stamp duty collections in July 2024 also recorded an increase of 47% to touch ₹504 crore from ₹344 crore in July 2023, according to the data.
Homebuyers don’t buy luxury homes just for a status symbol or lifestyle enhancement; they often buy them not only as investments to maximise long-term wealth but also as residences to enhance their quality of life. Integrating smart home technology and green, sustainable design elements can likewise increase property prices by up to 20%. According to a survey, 71% of wealthy Indians have expressed a keen desire to invest in Indian luxury real estate for the next 12–24 months.
Occupiers’ preference to lease green-certified buildings, called so because they are environmentally responsible and resource-efficient, has been seeing an uptick in India.
NCR leads with 96% growth in apartment sizes due to increase in new luxury supply
Hindustan Times
HT Real Estate News
The tax deduction offered is different for metro and non-metro cities.
Bengaluru's rental housing market is infamous for many reasons, ranging from high rents and sharp rental hikes to enormous security deposits, shortage of options and eccentric demands made by landlords.
According to a report by property consultancy Anarock, Bengaluru recorded the highest rental yield amongst the top seven cities in India during the first quarter of the ongoing calendar year at 4.45%.
