Bengaluru’s Real Estate Market is Booming, Despite Challenges
Bengaluru’s real estate market is proving its resilience, defying expectations of a slowdown despite various economic challenges. According to a report by Antique Stock Broking, several factors are fueling this growth, including declining interest rates, low inflation, income tax breaks, and a good monsoon. These elements have created a favorable environment, especially for the real estate sector.
However, the brokerage firm did point out some potential risks, such as ongoing trade uncertainty with the US and recent layoffs in the IT sector. These factors could impact market sentiment, with different effects across various regions.
A Tale of Two Cities: Bengaluru Thrives, Mumbai Stagnates
In its market analysis, Antique Stock Broking found that Bengaluru, Pune, and Hyderabad are seeing strong sales. North Bengaluru and specific neighborhoods in Pune and Hyderabad are experiencing particularly high demand, especially for more affordable properties. This trend highlights a continued strong interest in accessible housing options, which is a key driver for the market.
In contrast, the Mumbai Metropolitan Region (MMR) has seen a slower pace of sales, with many potential buyers holding off on their purchase decisions. The report also shows a mixed picture for the National Capital Region (NCR). While Gurugram is facing pricing pressure due to low demand, Noida continues to see healthy sales.
Launches are Coming, and Competition is High
The report noted that most new real estate projects have been delayed and are now expected to launch in the latter half of the fiscal year (FY26). This means that the current market trends are largely based on existing sales.
Competition is particularly fierce in the MMR and Gurugram, especially for redevelopment projects. This high competition is driving up property valuations, which can impact profit margins but also benefits firms with a strong pipeline of projects.
Looking ahead, the performance of these new project launches will be a critical factor to watch. The brokerage firm is confident in the market’s potential, identifying Sobha and Aditya Birla Real Estate Ltd as their top stock picks. They believe these companies are well-positioned to benefit from the upcoming launches and continued demand in key markets.