Priyatham Kumar, Founder, Homes247.in
Bengaluru: Bangalore, India’s tech hub, has witnessed a remarkable surge in property prices in 2024. According to a recent report by CREDAI and Colliers Liases Foras, housing prices in Bengaluru have increased by 19% year-on-year, in the January-March quarter of 2024. The periphery and outer-east micro market within Bengaluru saw the steepest upward movement at a 32% YoY increase. As the demand for residential and commercial properties continues to rise, it is important to understand the factors contributing to these price hikes and the impact on the market as a whole.
Factors Contributing to Bangalore’s Property Price Hike
As IT professionals continue relocating to the city, demand for residential and commercial properties increases.
Major expansion projects are making outskirt areas more inclusive with improved connectivity, ultimately leading to price hikes in these previously affordable zones.
Supply constraints due to limited land availability for new developments within the city lead to tough competition for available spaces making the prices higher.
How Few Players are Dominating the Market?
Leading real-estate developers have the financial capacity to overcome market fluctuations. As property prices in Bangalore continue to rise, these companies have utilised innovative pricing models to make their projects more accessible to potential buyers. These eminent players leverage digital platforms effectively to market their properties. From virtual property tours to online booking systems, they embrace technology to provide a seamless experience to target customers. Instead of focusing only on high-end properties, successful players have diversified their offerings to cater to a wider range of buyers by introducing affordable housing projects. These players have identified upcoming areas with growth potential and invested in developing projects in these locations, attracting buyers looking for future appreciation.
A large set of companies that can afford the resources to invest in aggressive marketing campaigns, successfully reach a wider audience and generate greater interest in their projects. Additionally, established players with a proven track record and brand reputation enjoy a distinct advantage in attracting buyers. These renowned players have forged strategic partnerships with financial institutions to offer attractive loan terms and mortgage options, thereby addressing the affordability challenges posed by escalating property prices. They prioritize customer satisfaction by providing clear and comprehensive information about property specifications, pricing, and legalities and offer personalised experiences to foster long-term relationships and gain referrals through word-of-mouth marketing.
Furthermore, under the Union Budget 2024, the government’s constant focus on prioritizing affordable housing and recognizing the real estate sector’s potential with an allocation of over Rs 11.11 lakh crore is a key accelerator for the Bangalore Property Market. Bangalore’s real estate market remains dynamic and influenced by multifaceted factors. While the market is subject to experience fluctuations, these few players have gained a competitive edge in the Bangalore real estate market through a combination of adaptability, technology integration, customer focus, financial accessibility, and ethical standards. As Bangalore navigates through the evolving dynamics of property prices, proactive measures and innovative approaches will be imperative in ensuring a resilient and inclusive real estate market for all stakeholders.
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