The occasion marked the change of guard at CREDAI-MCHI, with Sukhraj Nahar taking over as President from Dominic Romell. Fadnavis, who attended as the Chief Guest, used his address to call out what he described as the sector’s broken promises.

‘We Fulfilled Your Demands… Yet Prices Still Went Up’

Fadnavis recalled that over the last decade, developers repeatedly approached the government seeking policy concessions — especially reductions in premiums — claiming this would make homes in Mumbai affordable.

“We reduced premiums, fulfilled every demand. I even expected prices to drop after the Coastal Road was developed. But instead of lowering prices, you raised them,” he said, drawing sharp attention from the audience of leading developers.

A Public Accountability Moment for the Sector

The Chief Minister’s remarks highlight a rare public confrontation between the state and Mumbai’s powerful real estate sector. While government concessions were aimed at reducing input costs, housing prices in the city have continued to climb, putting home ownership out of reach for many middle-class buyers.

CREDAI-MCHI Leadership Transition

The evening was also about leadership change, with Sukhraj Nahar stepping in as the new President of CREDAI-MCHI, one of India’s most influential real estate bodies. Outgoing president Dominic Romell was acknowledged for his tenure, while the incoming leadership pledged to work closely with the government on housing issues.

Also Read: CREDAI-MCHI Launches Exhibition to Streamline Redevelopment in Mumbai

The post ‘We Cut Costs, You Raised Prices’: CM Fadnavis Slams Builders at CREDAI-MCHI Event appeared first on Square Feat India.

Record-Breaking Growth Near Airports The report indicates that property prices in airport-led micro-markets such as Yamuna Expressway, Panvel Region, North Bengaluru, and South Hyderabad have surged by 69%–90% for apartments between FY 2021 and FY 2025. During the same period, residential plot values in these corridors recorded even steeper growth, rising in the range of 84%–118%.

In comparison, the corresponding city-wide averages for these locations show apartment price growth of 45%–79%, while residential plot prices appreciated by 45%–93%. This clearly demonstrates that areas around airports have become investment hotspots.

Impact in Key Cities The report studies the airport-driven impact on property price trends from FY 2021 to FY 2025 in select key major cities and regions, including Bengaluru, Hyderabad, Navi Mumbai, and Noida & Greater Noida (including Yamuna Expressway). It captures the strong recovery and upcycle in residential markets in the post-pandemic years. The report highlights that property price growth in airport-led corridors has consistently outperformed city-wide averages for both apartments and residential plots.

Key Drivers of Growth Tanuj Shori, CEO & Founder, Square Yards, stated, “Airports are among the most influential enablers of economic growth, urban transformation, and real estate development. In India, cities anchored by major airports, such as Delhi, Mumbai, Bengaluru, and Hyderabad, have demonstrated sustained residential growth, driven by improved connectivity, increase in employment hubs, and large-scale infrastructure investment. This impact is even more visible in micro-markets located near airports.”

Shori further noted that areas like North Bengaluru and South Hyderabad, for example, have consistently recorded stronger property price appreciation than their regional peers. Even greenfield projects like Noida International Airport and Navi Mumbai International Airport are already driving residential activity well before operations begin.

Future Prospects Currently, according to the Airports Authority of India, India has 140 airports handling nearly 412 million passengers annually. In alignment with the national vision of ‘Viksit Bharat’, this figure is expected to rise to 300 airports serving nearly 3 billion passengers annually by 2047. Given these projections, all stakeholders in the residential market have a strategic opportunity to benefit from the next generation of globally connected, future-ready Indian cities.

Average Apartment Property Rates in Select Key Cities (FY25)

Average Residential Plot Property Rates in Select Key Cities (FY25)

Key Findings:

• Bengaluru: Apartment prices in North Bengaluru grew by 69% (Rs. 11,000-13,000 per sq.ft), compared to 48% in the rest of the city (Rs. 13,000-15,000 per sq.ft). For plots, North Bengaluru saw a 118% growth (Rs. 68,000-72,000 per sq.yd), while the rest of Bengaluru grew by 93% (Rs. 80,000-85,000 per sq.yd).
• Hyderabad: Apartment values in South Hyderabad rose by 74% (Rs. 6,000-8,000 per sq.ft), against 48% in other parts of Hyderabad (Rs. 9,000-11,000 per sq.ft). Plot prices in South Hyderabad increased by 84% (Rs. 55,000-60,000 per sq.yd), compared to 59% in the rest of the city (Rs. 75,000-80,000 per sq.yd).
• Navi Mumbai: Apartment prices in the Panvel region increased by 74% (Rs. 10,000-12,000 per sq.ft), while the rest of Navi Mumbai saw a 45% growth (Rs. 19,000-21,000 per sq.ft). Plot rates in Panvel recorded a solid 93% increase (Rs. 80,000-85,000 per sq.yd), whereas other parts of the city grew slower at 58% (Rs. 1,10,000-1,30,000 per sq.yd).
• Noida & Greater Noida: Apartment rates along the Yamuna Expressway corridor saw 90% growth (Rs. 7,000-9,000 per sq.ft), while the rest of Noida grew by 79% (Rs. 9,000-11,000 per sq.ft). Plot values on the Yamuna Expressway increased by 94% (Rs. 65,000-70,000 per sq.yd), compared to a slower pace of 45% in the rest of Noida (Rs. 90,000-1,10,000 per sq.yd).

This report highlights that airports are not just travel hubs but also powerful engines of economic and real estate development in their surrounding areas.

Also Read: Will Second airport boost Goa’s real estate?

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India’s residential real estate sector is expected to sustain steady growth over this fiscal and the next, as sales and demand stabilize following three years of strong post-pandemic recovery, according to an analysis by CRISIL Ratings.

The report, covering 75 major real estate companies that account for ~35% of national residential sales, projects a compound annual growth rate (CAGR) in sales volumes of 5–7%, with average prices rising 4–6%. This translates to a steady 10–12% growth in value terms.

Demand Revival Supported by Lower Rates and Premium Housing
Last fiscal, demand remained flat, weighed down by higher capital values and delays in launches due to elections and regulatory changes in some states. However, the current and next fiscals are expected to see demand rebound on the back of:

• Improving affordability as interest rates soften
• Sustained appetite for premium and luxury homes
• Normalization of project launches across key micro-markets

“The premium and luxury segments in the top seven cities have seen their share of launches jump from 9% in 2020 to 37% in 2024,” said Gautam Shahi, Director, CRISIL Ratings.
“This trend is expected to continue, with premiumisation driving 38–40% of launches in 2025 and 2026.”

Premiumisation Redefining New Supply
In contrast to the rising prominence of premium housing, the affordable and mid-segments are expected to decline further, largely due to rising land and input costs that have rendered these categories less attractive to developers.

Launch Share by Segment (%):

Supply Still Outpacing Demand
Developers had already ramped up launches over the past three years, leading to supply outpacing demand. As this trend continues, inventory levels are expected to increase slightly:

• From 2.7–2.9 years in the past two fiscals
• To 2.9–3.1 years over the current and next fiscal

Deleveraged Balance Sheets and Strong Collections Underpin Stability
Despite the supply overhang, developers’ credit profiles have strengthened significantly due to:

• Robust collections from strong sales
• Timely project execution
• Adoption of asset-light development models (joint ventures, joint developments)
• Substantial equity inflows, especially through qualified institutional placements (QIPs)

In fact, the QIP proceeds as a percentage of outstanding debt rose from 13–16% in the preceding three fiscals to 24% last fiscal, reflecting growing investor confidence.

Debt Metrics at a Healthy Level

“The continuing improvement in cash flow from operations and rising equity inflows have strengthened credit metrics,” said Pranav Shandil, Associate Director, CRISIL Ratings.
“The debt-to-CFO ratio is projected to improve to 1.1–1.3 times this fiscal and the next, down from 1.2–1.5 times previously and significantly below the ~5.6 times seen in FY20.”

Key Credit Metrics Snapshot:

Outlook: Prudent Leverage, Controlled Inventory Key to Stability
While the outlook remains positive, CRISIL notes that developers’ ability to maintain moderate leverage and control inventory will remain critical for sustaining credit strength.

The report underscores that premiumisation, improved affordability, and healthy cash flows will drive steady growth—albeit at more moderate rates compared to the surge seen in the immediate post-pandemic years.

Also Read: ICRA and CRISIL enhance Commercial Paper limits of Godrej Properties Limited to INR 2000 crore

The post Residential Sales to Maintain Steady 10–12% Growth Path: CRISIL Ratings appeared first on Square Feat India.

According to an official notification from the State Registration and Stamps Department, the average increase in RRR across Maharashtra stands at 3.89%. This marks the first revision since 2022-23, following speculation that certain regions could witness hikes of up to 10%.

Major Cities See Significant Hikes

While Mumbai, Maharashtra’s financial hub, has seen a relatively modest increase of 3.4%, other key cities have recorded steeper hikes. Thane tops the list with a 7.72% increase, followed by Solapur (10.17%), Ulhasnagar (9%), Navi Mumbai (6.75%), Nashik (7.31%), Pune (4.16%), and Panvel (4.97%).

Municipal corporation areas outside Mumbai have registered an average increase of 5.95%, whereas rural areas have witnessed an average hike of 3.7%.

Impact on Homebuyers and Real Estate Sector

Industry experts believe the RRR hike will lead to a marginal increase in property prices, particularly in regions with higher revisions. Since stamp duty and registration charges are directly linked to RR rates, the move is likely to increase the overall cost of real estate transactions.

Industry Reactions

Prashant Sharma, President, NAREDCO Maharashtra

“The increase in Ready Reckoner rates across Maharashtra will impact property valuations and overall acquisition costs for homebuyers. While aligning RR rates with market realities is important, this hike comes at a time when affordability plays a crucial role in sustaining demand. It could deter potential buyers and add pressure on developers already facing high input costs. We urge the government to adopt a more calibrated approach to such revisions to ensure sustainable growth of the sector.”

Shraddha Kedia-Agarwal, Director, Transcon Developers

“The increase in RR rates will have a cascading effect on property pricing, especially in prime urban markets like Mumbai, where base property prices are already high. This revision impacts stamp duty and registration charges, increasing the financial burden on buyers. While the sector has seen positive momentum, gradual implementation of such policy changes would help maintain buyer confidence.”

Samyak Jain, Director, Siddha Group

“The recent RR rate hike could influence demand, particularly in the affordable housing segment, where even minor price changes matter. Developers may also need to reassess pricing strategies for ongoing projects. While transparent valuation is crucial, a phased approach would have helped sustain market sentiment and ensure a smoother transition.”

Conclusion

With the new Ready Reckoner Rates now in effect, Maharashtra’s real estate landscape is set for a potential shift in property prices. While urban centers may experience a more pronounced impact, the overall market response will depend on buyer sentiment, developer strategies, and future policy decisions. Industry stakeholders are hopeful that future revisions will consider market conditions to balance growth and affordability.

Also Read: Ready Reckoner Rates Hiked, Homebuyers To Pay More from Saturday

The post Maharashtra Government Hikes Ready Reckoner Rates for 2025-26; Property Prices Set to Rise appeared first on Square Feat India.

Among the top seven cities, Noida’s Sector-150 saw the highest jump in capital values, surging by 128%, while rental values in the area increased by 66%. Similar trends were observed in major cities like Hyderabad, Mumbai Metropolitan Region (MMR), Bengaluru, and the National Capital Region (NCR), where home prices rose faster than rental values.

Top Markets Where Home Prices Outpaced Rent Growth

• Noida (Sector-150): Capital values soared by 128%, while rental values rose by 66%.
• NCR (Sohna Road): Property prices increased by 59%, with rental growth at 47%.
• Mumbai (Chembur & Mulund): Capital values rose by 48% and 43%, respectively, while rental appreciation was lower at 42% and 29%.
• Hyderabad (HITECH City & Gachibowli): Capital values increased by 62% and 78%, compared to rental growth of 54% and 62%, respectively.
• Bengaluru (Thanisandra Main Road): Home prices climbed by 67%, while rental values grew 62%.

Where Rents Rose Faster Than Home Prices

In contrast, cities like Pune, Kolkata, and Chennai saw rental values increase more than property prices.

• Pune (Hinjewadi & Wagholi): Rental values grew 57% and 65%, while capital appreciation was 37% in both areas.
• Kolkata (EM Bypass & Rajarhat): Rents increased by 51% and 37%, while property values appreciated by 19% and 32%.
• Chennai (Pallavaram & Perambur): Rental growth outpaced capital value growth by 44% vs. 21% and 36% vs. 23%, respectively.

What This Means for Homebuyers and Investors

The report highlights that investors looking for long-term property appreciation should focus on cities where capital values are rising faster. Meanwhile, those prioritizing rental income should consider markets where rental values are growing steadily.

“More than ever, investors must align their strategy with specific locations,” says Anuj Puri, Chairman – ANAROCK Group. “Those looking for long-term capital appreciation can target markets with high appreciation, while rental-focused investors should focus on areas where rents are rising consistently.”

This trend underscores a key decision for homebuyers—whether to buy or rent—based on how property prices and rental values are evolving in their preferred locations.

SFI Analysis

The latest ANAROCK data reveals a clear trend: in key Indian cities, home prices are rising faster than rental values, making ownership more lucrative in select markets. Noida’s Sector-150 saw a massive 128% increase in capital values, while Hyderabad, NCR, and MMR also witnessed strong property price growth. In contrast, cities like Pune, Kolkata, and Chennai experienced higher rental appreciation than capital growth. This divergence suggests that investors should focus on capital growth markets, while rental-focused buyers should target cities where rents are rising steadily. The data underscores the importance of location-specific investment strategies for homebuyers and investors alike.

Also Read: Rising property prices have boosted present homeowners’ home equity

The post Home Prices Surge Faster Than Rents in Key Indian Cities appeared first on Square Feat India.

Among the major cities, Delhi NCR recorded the highest price growth at 31% YoY, followed by Bengaluru at 23%. The luxury and ultra-luxury segments, in particular, have gained significant traction, and this trend is expected to continue into 2025.

Housing Prices on a Steady Rise

Data from Liases Foras and Colliers indicate that all eight major cities recorded an increase in residential prices in Q4 2024. Delhi NCR witnessed the steepest rise, with Dwarka Expressway leading at a 58% annual increase, followed by Greater Noida at 52% YoY growth. Bengaluru also experienced significant growth, particularly in its Periphery & Outer West micro-markets, where ready-to-move-in units saw strong demand.

Pan India Residential Price Trends (INR/sq ft) – Q4 2024:

Decline in Unsold Inventory

For the fourth consecutive quarter, overall unsold inventory levels declined, dropping 5% YoY by the end of Q4 2024. Notably, Pune saw the highest decline at 14%, followed by Hyderabad at 13%. The Mumbai Metropolitan Region (MMR) accounted for nearly 40% of the total unsold inventory, but for the first time in three years, it saw a reduction to 390,000 units.

Market Insights from Industry Experts

According to Boman Irani, President of CREDAI National, “The sustained growth in housing prices underscores the strong confidence among homebuyers, driven by a preference for spacious living and lifestyle upgrades. With evolving consumer aspirations, we are witnessing increased demand for larger homes, better amenities, and integrated living spaces.”

Badal Yagnik, CEO of Colliers India, added, “Luxury and ultra-luxury housing segments have been key drivers of price growth. With potential reductions in interest rates and government initiatives to support affordable housing, demand across categories is expected to remain strong in 2025.”

Future Outlook

The residential market is poised for continued growth in 2025. The combination of infrastructure developments, evolving buyer preferences, and a strong luxury housing market is expected to keep prices on an upward trajectory. Additionally, a potential reduction in benchmark lending rates could further boost affordability, making it an opportune time for homebuyers to invest in real estate.

With steady demand, declining unsold inventory, and rising prices, India’s real estate market remains robust, signaling a promising year ahead for the housing sector.

Also Read: 2024 Warehousing Trends

The post Housing Prices Surge in 2024, Delhi NCR Leads with 31% Growth appeared first on Square Feat India.

The report, titled Real Insight: Residential Annual Round-up 2024 by PropTiger.com, revealed that while property prices saw a significant uptick across various cities during the October-December period of 2024, the rise varied by region. In particular, the NCR housing market recorded the sharpest surge in property values, reflecting the region’s growing demand for high-end real estate. This price escalation came despite a general slowdown in price growth in some cities, like Hyderabad, which saw a more modest 3% increase after nearly a decade of strong growth.

Price Growth Across Major Cities

The report highlights property price trends in key residential markets across the country, with Delhi-NCR standing out with the highest increase. The average price per square foot in Delhi NCR rose from ₹5,445 in Q4 2023 to ₹8,105 in Q4 2024, marking a 49% YoY growth. Other major cities also saw impressive growth:

• Ahmedabad: ₹4,000 to ₹4,402 (10% increase)
• Bengaluru: ₹6,744 to ₹7,536 (12% increase)
• Chennai: ₹6,200 to ₹7,173 (16% increase)
• Hyderabad: ₹6,842 to ₹7,053 (3% increase)
• Kolkata: ₹5,100 to ₹5,633 (10% increase)
• Mumbai Metropolitan Region (MMR): ₹10,712 to ₹12,600 (18% increase)
• Pune: ₹6,140 to ₹7,108 (16% increase)

These figures suggest that the demand for residential properties across these cities continues to grow, particularly in areas with strong economic prospects and increasing infrastructural development.

NCR’s Unstoppable Growth

The NCR region’s remarkable surge in property prices can be attributed to several factors, including a thriving economy, high-net-worth individuals (HNIs) making substantial investments, and the growing presence of newly-listed start-ups. Areas like Gurugram, Noida, and Greater Noida saw significant increases in home sales, with Gurugram experiencing a 144% rise in sales YoY. Despite a nationwide dip of 26% in home sales, key NCR cities have maintained strong growth in the residential market.

The report attributes this resilience in NCR’s housing market to developers’ focus on premium housing offerings, a trend driven by the high demand from HNIs and business professionals. Developers are prioritizing luxury properties over affordable housing, thus catering to the growing demand for high-end real estate in the region.

Mumbai and Other Key Markets

Similarly, Mumbai’s residential property market saw an 18% YoY increase in property prices, driven by similar factors of demand from high-net-worth individuals, the presence of Bollywood celebrities, and Mumbai’s status as India’s financial hub. The city continues to be one of the most unaffordable housing markets in the world, attracting significant interest from both domestic and international investors.

Despite strong demand, the rising costs of building materials, land, and labor have made affordability a growing concern. As construction costs continue to climb, affordability issues are expected to deepen, especially for the middle class, which heavily relies on government subsidies for homeownership.

The Need for Policy Measures

Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, highlighted the challenges posed by the steep rise in property prices, stressing that while this growth indicates strong demand and positive buyer sentiment, it also raises concerns over affordability, particularly for lower-income buyers.

Agarwala suggested that the government must introduce policy measures to address affordability issues, particularly in light of rising inflation and slowing growth. He emphasized that positive changes in tax laws in the upcoming Budget, coupled with potential rate cuts by the Reserve Bank of India (RBI), could help ease affordability challenges for India’s growing middle class.

The PropTiger.com report underscores the need for a balanced approach to the housing market that promotes both luxury and affordable housing to ensure that all segments of society can benefit from the country’s real estate growth.

Conclusion

The 2024 property market performance reflects continued strong demand in India’s key residential markets, with Delhi-NCR and Mumbai leading the surge. However, the rising costs of materials and labor pose a challenge to affordability, urging the government and industry stakeholders to take proactive steps to ensure sustainable growth and accessibility in the housing sector.

Also Read: auction of developer property

The post Property Prices Surge Across India’s Prime Residential Markets in 2024 Amid Rising Costs appeared first on Square Feat India.

According to official data, Mumbai recorded 10,334 property registrations till the afternoon of January 29, 2025, generating a revenue of ₹841 crore from stamp duty collections. In comparison, January 2024 witnessed 10,328 property registrations, bringing in ₹839 crore in stamp duty revenue.

A closer analysis of these figures indicates that property transactions have remained nearly unchanged over the past year. The marginal increase in property registrations suggests a lack of momentum in the market.

Moreover, the stamp duty collections, which are calculated at 6% of the total consideration of the property, also show no significant deviation. This implies that property prices in Mumbai have remained largely stable without any major appreciation over the past year.

Industry experts believe these figures reflect a stagnant market, where demand is neither surging nor declining, and prices have remained at a standstill. This could be due to a combination of factors, including high interest rates, affordability constraints, and cautious buyer sentiment amid economic uncertainties.

Despite the lack of growth, stakeholders remain hopeful that upcoming policy changes or incentives in the real estate sector may stimulate movement in the market. However, as things stand, Mumbai’s property sector appears to be treading water with no clear signs of a breakthrough in sight.

In the next two days of this month, not much is expected.

Also Read: Mumbai property registrations sees marginal rise

The post Mumbai’s Real Estate Market Shows Signs of Stagnation as Property Registrations Plateau appeared first on Square Feat India.

The top-performing market was the Mumbai Metropolitan Region (MMR), which registered the highest sales with 155,335 units, a modest 1% increase from 2023. Pune followed with 81,090 units sold, while Bengaluru also saw a slight growth in sales, up 2% to 65,230 units. Together, MMR, Pune, Bengaluru, Hyderabad, and NCR accounted for 92% of the total sales in the top cities.

Despite the decline in sales volume, the surge in average property prices led to an overall increase in sales value. In 2024, residential prices across the top seven cities rose by 21%, with Delhi-NCR seeing the steepest hike of 30%. The rise in prices was attributed to increasing construction costs, higher demand for larger homes, and a shift towards luxury housing. The average price per square foot in Q4 2024 was INR 8,590, up from INR 7,080 in Q4 2023.

New Launches Decline, Luxury Segment Surges

The report also highlighted a 7% year-on-year decline in new residential launches, from 445,770 units in 2023 to 412,520 units in 2024. MMR and Bengaluru led in new supply, accounting for nearly 50% of the total new launches. NCR saw a notable 44% rise in new supply, with 53,000 units launched in 2024 compared to 36,735 units in 2023.

While the overall launch numbers fell, the luxury and ultra-luxury segments (>INR 1.5 crore price bracket) saw a significant uptick in both demand and supply. Approximately 30% of new supply in 2024 was in these high-end categories, reflecting the continued trend of homebuyers opting for larger, premium homes.

Price Trends and Inventory

Price growth varied across cities, with MMR recording a 21% increase in average prices, while Bengaluru and Hyderabad saw price hikes of 28% and 27%, respectively. The luxury market, in particular, remained strong, with NCR’s ultra-luxury segment seeing substantial growth.

Available inventory across the top cities decreased by 8% in 2024, as limited new launches contributed to the tightening of unsold stock. Pune experienced the sharpest decline in unsold inventory, dropping by 20% year-on-year. However, Bengaluru and Chennai saw a slight rise in available stock.

Outlook for 2025

Looking ahead to 2025, ANAROCK Chairman Anuj Puri noted that while the rapid price hikes may stabilize, steady growth is expected due to continued demand and increasing input costs. He also mentioned that new supply would pick up pace in 2025, driven by listed developers who have significant inventory lined up. However, the election season and slower project approvals in 2024 have temporarily dampened housing growth. Luxury housing demand, in particular, is expected to remain strong as homebuyers continue to prioritize quality and larger living spaces.

Also Read: With 5% Stamp Duty Housing Sales In City See A Drop

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Bengaluru, the Silicon Valley of India, is synonymous with technological expertise and economic growth. Its skyline, replete with towering skyscrapers and vast residential tracts, speaks volumes of its booming real estate sector driven by India’s thriving IT and corporate sectors. The past few years have seen Global Capability Centres (GCCs) emerge as a dominant factor in Bengaluru’s real estate dynamics.

GCCs are the Offshore Development Centres of global enterprises. These centres, driven by government policies, have highly impacted the residential and commercial real estate sectors of Bengaluru, besides raising the city’s global status. Bengaluru was the first choice for setting up GCCs in India because of its skilled manpower, innovative infrastructure, and cosmopolitan culture.

Favourable Government Policies Driving GCC Expansion

The Karnataka Government’s GCC Policy, which aims to set up 500 new GCCs by 2029, has been significantly driving the state’s urban growth. Besides bringing multinationals from all around the globe to Karnataka, the GCC policies of the state have driven significant infrastructure investments. This includes the enhancement of the Bangalore Metro and the Peripheral Ring Road, as well as the upcoming knowledge, wellbeing, and innovation city – KWIN city. These projects are aimed at connecting and improving infrastructure, thus making Bengaluru a desirable hub for residential and commercial investment.

Additionally, the policy is expected to create 3.5 lakh jobs, which will bring countless professionals to the city.

Also, the government’s efforts towards sustainable urban growth have promoted developers to embrace green building practices and eco-friendly designs. These initiatives align with the sustainability goals supported by multinational corporations operating GCCs, thus creating an appealing link between policy and real estate development.

Thriving Commercial Realty Driving Demand for Residential Spaces

The growth of GCCs has propelled Bengaluru’s commercial real estate sector. Industry reports show that between 2020 and 2023, Bengaluru accounted for 26.4 million square feet of GCC leasing, or 37% of total GCC leasing, thus making Bengaluru the largest contributor in this particular segment. Also, demand for commercial space has gone up, along with rental values as multinational companies are increasingly setting up large facilities. Occupancy percentages in business districts are also on the rise. A report by CREDAI and CRE Matrix says that the supply of high-end office space in six major cities has exceeded 700 million square feet, with Bengaluru accounting for the largest share at 28%.

Such high demand for commercial properties is creating ripples in the residential market as well. Let’s see how:

The GCC influx in Bengaluru has driven considerable economic growth by generating high-paying jobs and attracting affluent expatriates and skilled professionals. These employees, mainly mid-level and senior professionals, look for upscale living spaces to stay nearby, which in turn has increased the demand for luxurious apartments, gated communities, and smart homes designed with modern amenities in Bengaluru. The growing popularity of smart homes with installed IoT-enabled devices, energy-efficient systems, and advanced security solutions resonates with the tech-savvy lifestyle of GCC employees.

Residential Real Estate Trends

Evolving employee preferences have transformed the residential real estate scene in Bengaluru. Developers are now focused on developing high-end projects in North Bengaluru and districts like Whitefield, Sarjapur Road, and Outer Ring Road, which are conveniently located near major IT and GCC hubs. These areas provide proximity to workplaces besides offering serene and well-structured living environments. Consequently, integrated townships and mixed-use developments, which integrate residential, commercial, and recreational spaces, have gained immense popularity in such regions. For GCC professionals, it means convenience, connectivity, and improved living conditions.

Co-living spaces are equally gaining traction in Bengaluru, particularly among younger professionals and expatriates. Besides being affordable and flexible, these shared accommodations offer a sense of community, thus making them ideal for Bengaluru’s migrant workforce. Furthermore, the hybrid work model is also influencing the residential realty sector. More professionals look for homes that can also serve as productive workspaces. Consequently, developers are designing properties with dedicated office areas, high-speed internet, and ergonomic features to cater to these requirements.

Opportunities in Residential Real Estate Going Forward

GCCs’ influence on Bengaluru’s residential real estate market will increase in the coming years. The city will gain further recognition as a real estate hotspot as it solidifies its standing as a top spot for global capability centres. What’s more, the infrastructure development driven by GCCs has led to rising property prices in significant locations. Thus, developers in Bengaluru are reaping the benefits of the growing housing demand through innovative construction technologies and design principles to cater to the tastes and preferences of GCC employees. Smart city concepts, ranging from integrated digital infrastructure to sustainable practices, are also becoming part and parcel of residential projects. These developments address the requirements of professionals in the GCCs besides positioning Bengaluru as a global city offering premium living experiences. Due to its focus on urban planning, sustainable growth, and policy support, the city is well-positioned to maintain its competitive edge.

Future Prospects: Bengaluru as a Global Hub

With GCCs projected to generate an economic output of $50 billion by 2029, Bengaluru’s real estate market is set to grow exponentially. Property prices in prime GCC locations, such as North Bengaluru, are already seeing significant appreciation, averaging over ₹7,000 per square foot. These trends make the city a magnet for investors and end-users alike. Continued investment in infrastructure, sustainable development, and innovative real estate solutions should make Bengaluru a hub of excellence not only for global businesses but also homeowners.

Also Read: Bengaluru property values

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