How Bengaluru’s Real Estate industry was resilient despite the Covid-19 pandemic/ Analysis of Bengaluru Real Estate post the Covid-19 pandemic/ Snapshot of the Bengaluru Real Estate sector after the
The Covid-19 pandemic that struck in March 2020 had a big impact on the vibrant Real Estate industry in Bengaluru. For instance, prospective homebuyers could not physically visit under-construction apartments due to lockdown measures and social distancing norms. Hence, they viewed everything in the form of a virtual tour. Similarly, bank managers processed home loans digitally by viewing photos and videos of the properties instead of going for site inspections.
Some must-know statistics about how Real Estate prospered in Bengaluru after Covid-19 are
Though the Covid-19 pandemic affected housing demand immensely, residential property prices in Bengaluru increased by 1.7% in the first 3 months of 2021.
According to a report by ANAROCK Property Consultants, there was a 1.7% rise in Real estate prices in Bengaluru from Rs 4975 per sq ft to Rs 5060 per sq ft in the first quarter this year. This is the highest price rise among all metropolitan cities in India.
Housing sales in Bengaluru increased by a whopping 8670 units from January to March 2021. This number is impressive despite delays in the completion of some construction projects due to the non-availability of migrant workers. Buyers are demanding more properties sold in the affordable segment (Rs 25 lakh to Rs 50 lakh) and mid-segment (Rs 50 lakh to Rs 1 crore).
- A humongous 33.3 million sq ft of commercial property is available for lease in Bengaluru. The IT capital has the highest share (37%) of land available for business enterprises amongst other cities in India. More IT and ITeS companies will renew their leases soon leading to the huge demand for office spaces.
- More buyers are interested in buying affordable housing units in East Bengaluru. The region sold a huge 45% of the total supply of residential property in the city in 2020. Interested homeowners are also betting big on North Bengaluru (30% of sales) and South Bengaluru (25% of sales).
- According to Colliers International, 62% of property sales in Bengaluru were in the range of Rs 25 to Rs 75 lakh. Buyers are considering positive factors like proximity to the airport and office hubs and under-construction metro rail projects while purchasing their desired properties in the Garden City.
Wrapping Up
Optimism is a common trend among property investors in Bengaluru. The demand for property (both commercial and residential) is expected to skyrocket in the future. Large-scale infrastructure projects like the Bengaluru - Mysore Industrial Corridor (BMIC), Chennai - Bengaluru Industrial Corridor (CBIC), Peripheral Ring Road (PRR), and the Satellite Town Ring Road (STRR) will lead to a big boom in Bengaluru’s thriving real estate industry in the years to come.
