The property prices in Bengaluru remained stagnant from April to June compared to the first three months of 2021, as per a recent survey conducted in the Karnataka capital. According to the quarterly real estate report by 99acres, a property portal, the surge in Covid-19 infections during the second wave significantly impacted real estate transactions. The study found that lockdown restrictions, in place until mid-June, led to a considerable decrease in site visits.
Maneesh Upadhyaya, Chief Business Officer of 99acres, mentioned that site visits, home inquiries, and sales volume experienced a significant decline in April and May compared to the active first few months of the year. He noted a more than 25% reduction in responses on 99acres during Apr-Jun 2021, with owner listings also witnessing a 5% decline as sellers reflected the uncertain and pessimistic market sentiment.
After the easing of lockdown restrictions in June, there has been a revival in both owner listings and responses on the portal, according to Upadhyaya.
Realtors in the city acknowledged the adverse impact of the second wave on their operations. Ashish R Puravankara, Managing Director, highlighted that despite challenges, the ease of restrictions in construction activities and digitization helped sustain operations. He noted a rising demand for smart and affordable housing and expressed optimism about the growth trajectory of this segment.
The study indicated a continued demand for larger homes in Bengaluru due to the ongoing work-from-home culture. There was also an increased interest in villas and 3 BHK homes. Reeza Sebastian Karimpanal, President (Residential Business) of Embassy Group, emphasized changing consumer preferences, with a focus on holistic living experiences that prioritize sustainability and well-being. The report specified a surge in enquiries in micro-markets such as Devanahalli, Hebbal, Yelahanka, Hennur, Thanisandra, Jakkur, Kanakapura Road, and Bannerghatta Road, particularly in the Rs 80 lakh – 2 crore budget segment. However, Whitefield and Electronic City remained popular among potential homebuyers.
The study also highlighted a 3% dip in the residential rental landscape on a year-to-year basis. High vacancy levels, influenced by the work-from-home trend and Covid-19 protocols in residential societies, contributed to this negative growth during April to June. Many tenants, facing uncertainty, either stayed away or returned to their hometowns, impacting the rental market in the city.
