The waves of the COVID-19 pandemic and the resultant lockdowns that ensued adversely affected the residential real estate market countrywide. The Bengaluru real estate market until then had been in a growth phase, and the future was looking extremely bright. This was until the second wave of the pandemic hit, which brought down demand for residential real estate in 2021.
According to Magicbricks PropIndex, this demand came down by more than 25% overall, adversely affecting the city’s residential real estate. There has been an increased preference for premium properties, rising to 39% in Q2 against 36% in Q1 of 2021. While areas like Rajajinagar and JP Nagar saw an increase in property prices, other areas saw a plateauing in prices.
Demand for two and three-bedroom apartments was at an all-time high in the city, with a preference for three-bedroom units. Three-bedroom units were a frontrunner in the residential real estate market as they accounted for nearly half of the searches. The pandemic brought to buyers’ attention the need for space, which resulted in an interest in larger, more spacious homes.
Currently, buyers seem to prefer properties that are under construction, and prices for these have been steadily increasing yearly. The report also mentioned that the inauguration of the metro green line had garnered interest in properties along Kanakapura Road. The residential real estate market saw an overall downswing in the initial days of the pandemic as uncertainty loomed large.
All is not lost, however, in the residential market in Bangalore, as several initiatives are underway to attract home investors. Developers are offering several attractive pre-launch and early-bird offers as an incentive, helping buyers buy property at lower prices. The Bengaluru real estate market plunged in 2021, but with government and developer initiatives, there is hope of a resurgence.
Prestige Group new prelaunch apartment Prestige Park Grove.