Luxury housing sales soften; down 11% q-o-q

• Following a surge in luxury segment sales in Q2, Bengaluru has seen a short-term slowdown in luxury housing sales, with Q4 exhibiting the same trend, mostly due to sluggish conversion rates.
• However, Q4 saw significant sales in projects launched by reputed developers like Prestige Group, Brigade Group and Sobha Group. Whitefield continued to record the most sales, followed by Hosur Road and Bellary Road submarkets.

Strong new supply influx; up 12% q-o-q

• Despite a short-term slowdown in luxury housing sales, luxury project launches by leading developers have been on the rise, accounting for a 34% of the total quarterly launches.
• Like sales, a majority of the launches were recorded in the Whitefield submarket, followed by Bellary Road and Hosur Road submarkets. Some of the prominent launches in Q4 2024 include Prestige White Meadows – Clover Leaf, Sobha Ayana and Cascadia by TVS Emerald.

Capital values and rents up q-o-q

• The steady demand for luxury properties from both investors and end users, reputed developers commanding higher prices for the newly launched projects, and rising construction costs have led to overall appreciation in capital values in the segment.
• The upward movement in rents for the luxury housing segment was fuelled by limited inventory, amenities, favourable locations in terms of proximity to office hubs, transport nodes and shopping malls, among other factors.

Outlook: The luxury residential sector is likely to remain steady in 2025

• Luxury housing demand in the city during 2025 is expected to remain strong, driven by the city’s thriving IT industry, the increasing presence of and employment opportunities by MNCs, and the growing population of high-income buyers and investors.
• High-end residential property prices are expected to rise in 2025 amid healthy demand, infrastructure development in terms of metro expansions, improved road connectivity, and the development of tech parks in key areas like Whitefield, Sarjapur Road and North Bangalore.