Bengaluru becomes top performer in the real estate sector

Housing sales across eight cities in India went up by 60 percent annually from January to June this year

Housing sales across eight cities in India went up by 60 percent annually from January to June this year, according to Knight Frank India. This is the highest half-yearly demand in nine years.

Key sales drivers include the homebuyers’ need to upgrade, low home prices compared to pre-pandemic levels, low interest rates on home loans, and the renewed need for homeownership.

All markets experienced increases in housing prices in the first half of 2022, making it the first such period since H2 2015 in which prices increased YoY across all markets.

The top eight cities are Mumbai, Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, and Ahmedabad. 

Regarding the office market, Shishir Baijal, chairman and managing director of Knight Frank Idea said, “The robust performance delivered by the office market during H1 2022 has set the tone for 2022. Physical occupancy levels are rising as more companies want their employees to return to the office.”

A strong year for managed office spaces is also in store this year as occupiers continue to emphasize real-time expansion and contraction flexibility in leases.

Meanwhile, Bengaluru’s property market continued to do well despite the Omicron variant of the COVID-19 virus, increasing 34 percent YoY in Q1 2022, reported the Hindustan Times.

New launches in the residential sector maintained a solid momentum, boosting developer confidence and signaling a sustained increase in buyer mood.

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The city’s commercial real estate market also remained a top performer in office leasing, contributing 31 percent of total office transactions in the country during the first half of the year. The office market experienced a 117 percent YoY increase in transaction volumes while new completions for office space recorded an 11.5 percent YoY, according to The Hans India.

According to Shantanu Mazumder, executive director of Knight Frank India in Bengaluru, “We expect the strong momentum in office leasing in Bengaluru to continue in 2022-2023 as the physical occupancy rates are expected to pick up in the coming months.”

The Property Report editors wrote this article. For more information, email: [email protected].