The tech-city is now breathing down on Mumbai – the long-standing leader of the residential homes market in India.

The country’s information technology and start-up capital Bangalore has beaten the national capital Delhi to take the second spot in the residential real estate market in 2022. With sales souring by a record 72 per cent during the year, the tech-city is now breathing down on Mumbai – the long-standing real estate market leader of India.

Latest data from industry analyst and management services firm JLL shows, during 2022, 46,649 residential units were sold in Bangalore compared to 38,356 units in the national capital region of Delhi (Delhi-NCR). The Mumbai market recorded a 46,779 unit sales – marginally higher than its Southern counterpart. As a result, Bangalore, like Mumbai, contributed 22 per cent of the overall 215,666 housing units that were sold in the top seven markets in 2022. Delhi-NCR’s share stood at 18 per cent – just ahead of Pune (17 per cent).

While, in 2021, Bangalore had reported higher sales than any other market, housing sales were heavily impacted in the top two markets – Mumbai and Delhi-NCR due to severity of the second COVID-19 wave in the first half – making it a year of anomaly. 

During the October-December 2022 quarter, Bangalore retained the second spot after Mumbai, but Delhi-NCR market slipped further to the fourth spot behind Pune. The rise of Bangalore to the top, beating Delhi-NCR is intriguing since the area of the metropolis is markedly smaller than Mumbai or NCR. While Mumbai includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai, Delhi-NCR is spread across multiple cities like Delhi, Noida (Uttar Pradesh), Greater Noida (UP), Gurugram (Haryana), Ghaziabad (UP) and Faridabad (Haryana)

According to Samantak Das, Chief Economist, and Head Research & REIS, India, JLL, more traction was witnessed in the plots and villas segment in the southern cities like Bangalore, Chennai and Hyderabad in 2022.

Industry experts say, apart from inflow of capital and job creation through newer sectors like the start-ups and IT, Bangalore residents are relatively better placed when it comes to purchaing power. In 2022, while the rising home loan interest rates have reduced the affordability of homebuyers, the EMI to income ratio has surged moderately for Bangalore, compared to Mumbai and Delhi-NCR. AT the end of September 2022, the EMI to income ratio for Mumbai stood at 57 per cent, followed by Hyderabad (31 per cent) and Delhi-NCR (30 per cent) and Bangalore (28 per cent). A lower EMI to income ratio indicates towards homebuyers’ greater ability to afford a new home.

source : business today