Residential Market:
Bangalore’s residential market showcased robust growth in Q3 2024, with approximately 9,000 new unit launches, reflecting a 9% year-on-year increase. North Bengaluru emerged as the dominant region, contributing 25% of the total unit launches. South Bengaluru and South-East Bengaluru followed, accounting for 16% and 8%, respectively. The high-end and luxury segment made a significant impact, representing around 50% of all unit launches. This segment experienced a notable 21% growth quarter-on-quarter, signaling sustained demand for premium residential options.
Capital values in the city’s active eastern and northern submarkets increased by 8-9% year-on-year, underlining strong market resilience and investor confidence. Additionally, rentals in the IT corridors saw a growth of 4-5%, highlighting continued demand in these sought-after locations.
Office Market:
Bangalore’s office market recorded impressive performance metrics during Q3 2024. The gross leasing volume (GLV) reached 6.9 million square feet (MSF), marking a 24% growth from the previous quarter. Net absorption stood at 4 MSF, showing a remarkable 60% quarter-on-quarter surge, reflecting high tenant activity and business expansion.
The Outer Ring Road (ORR) emerged as the most sought-after office submarket, contributing to 50% of the total GLV. Other prominent areas included Peripheral North, which accounted for 19%, and Peripheral East with 13%. These figures underscore Bangalore’s status as a premier office destination, fueled by sustained demand from both multinational corporations and domestic enterprises.
Retail Market:
The retail sector witnessed steady growth, with leasing volumes reaching approximately 0.2 MSF, a 10% year-on-year increase. Mall leasing activity was predominantly driven by the fashion segment, which held a 53% share, followed by furniture (24%) and food and beverage (F&B) at 10%. On main streets, the fashion segment also led with a 28% share, while F&B comprised 20%, indicating the city’s strong appetite for lifestyle and dining options.
Industrial Market:
The industrial and warehousing segment in Bangalore saw a substantial boost, with warehouse leasing volumes totaling 2.7 MSF, a 36% growth from H1 2023. The eastern corridor dominated with a 41% share, demonstrating its strategic importance for logistics and distribution. West Bengaluru followed closely with an approximate 39% share. Warehouse rentals experienced a significant year-on-year increase of 8-10% in key areas such as Nelamangala and Hoskote, driven by rising demand for modern storage facilities and expanding supply chain networks.
Bangalore’s real estate landscape across residential, office, retail, and industrial segments exhibited strong growth and resilience in Q3 2024. The data points to a dynamic market with expanding opportunities, cementing the city’s position as a leading hub for real estate activity in India.
