Bengaluru prime residential rents inch up 0.7% in Q2

Thanks to the return of expats and rising office occupancies.

According to a JLL report, rents in Bengaluru’s high-end residential segment rose 0.7% q-o-q with the return-to-work trend and rising office occupancies, accompanied by the return of expats, global executives and embassy personnel, driving up the rent prices for luxury apartments across the city.

Capital values rose 2.5% q-o-q, backed by rising input costs being passed onto homebuyers and the strong demand supporting developers’ intent to hike prices.

Here’s more from JLL:

Homebuyers are interested in larger homes post-pandemic. The decision by the RBI to pause the repo rate hikes has had a positive impact on high-end home sales as well. The luxury market, led by end-users and long-term investors at the top of the wealth pyramid, has emerged as an attractive investment destination as well as a lifestyle choice for those looking for a differentiated lifestyle.

High-end residential property transactions were led by the ultra-high-net-worth individuals (UHNWIs) and senior professionals. The quarter saw strong sales activity in areas such as Whitefield in the Eastern Suburbs of the city and Bellary Road in the North, while the Central and Secondary markets continued to offer limited opportunities, for which there were takers as well.

New launches up 16.4% q-o-q

High-end residential launches were up q-o-q by a healthy 16.4%, with most of the new projects recorded in the Whitefield, Tumkur Road and Secondary submarkets.

Several major launches during the quarter were by reputed developers like Prestige Lavender Fields, Shriram Esquire, Sumadhura Folium Phase 2 and GM Palazzo.

Outlook: High-end residential market is expected to stay robust

The luxury residential segment in Bengaluru is expected to remain strong in terms of launches and sales in the upcoming quarters, as demand is fuelled by senior professionals in the tech sector, startup founders, businessmen, the C-suite, and others.

Luxury home prices are projected to rise in the medium term as well, as developers remain confident about the housing market’s robust dynamics, which are anticipated to keep demand upbeat, and, in turn, sustain price growth.