- Expensive home purchases in the IT capital
- 29% decrease in the launch of mid-range homes
Bengaluru home buyers face crisis in the IT capital, Bengaluru, are facing a crisis of affordability. Due to rising prices and reduced availability of affordable homes, their dream of owning a house is becoming increasingly difficult to achieve. According to a recent report by NoBroker, the new supply of mid-range homes has decreased by a significant 29% in 2024 compared to 2023.
As real estate developers focus more on high-margin luxury projects, budget-conscious buyers are facing challenges in fulfilling their dream of owning a home. The launch of mid-range residential projects in Bengaluru, priced between Rs 40 lakh and Rs 80 lakh, decreased by 29% in 2024. Even properties valued between Rs 90 lakh and Rs 1 crore remain limited. As a result, many are turning to suburban areas or considering purchasing older properties, the report stated. The lack of availability of affordable homes has left entry-level buyers with few options, forcing them to explore the resale market as a necessity, the report added.
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In 2023, Bengaluru saw 15,179 new launches in the mid-end segment, which accounted for 29% of the total launches. By 2024, this number had dropped to 14,876, now comprising 22% of the total launches, according to statistics. Meanwhile, the luxury segment, with properties priced above Rs 1.5 crore, witnessed an increase in new launches. The report highlighted that 29% of launches were in the luxury segment in 2023, which rose to 34% in 2024. In 2023, there were 15,071 luxury launches, which increased to 23,073 units in 2024.
“This trend highlights the changing dynamics of Bengaluru’s housing market. The dominance of high-end real estate continues, leaving limited options for middle-class buyers. Rising land prices, increasing construction costs, and higher profit margins are driving developers to focus on premium amenities and larger homes for wealthy buyers,” the report added.
