The property sales market in South India - which comprises Bengaluru and Telangana - witnessed an incline in transaction volume during January - March 2022 (Q1), picking up pace from the last quarter. Hyderabad was an exception, where a marginal decline in transaction volume was observed. Favorable macro and micro factors continue to push demand. Among the different geographies observed, Bengaluru noted the highest growth QoQ.
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The affordable segment (ticket size < 45 lakhs) continued to be the strongest performing throughout the different regions observed. Warangal showed the strongest share of the segment with over 97% of total transactions falling in the sub 45 lakhs bracket, growing in kind from the previous quarter.
Telangana state government’s decision to impose a heavier stamp duty of 7.5% last quarter might be a factor to take into consideration while evaluating Hyderabad's decline in sales volume.
Affordable Segment Continued to Drive Sales Volume in Bengaluru
Bengaluru, experiencing a turnaround after a slow Q4 2021, witnessed a 12.75% growth QoQ. Maximum sales volume, as was for other geographies in South India, was recorded in the Affordable segment. The average segment share of sales stood at 67.78% of overall sales in Q1 2022, a figure that saw a marginal growth from 65.19% in the previous quarter. In contrast, the average segment share of Premium properties stood at 15.33%, a figure that saw a slight decline from 16.54% in the last quarter.
Karnataka state government’s decision to provide a 10% relief on property guidance values from January 2022 might be a factor that has aided Bengaluru’s turnaround from last quarter. In fact, the government has also decided to increase the time period of this policy change by an additional 3 months due to its popularity.
Kammasandra Recorded the Highest Sales Volume in Bengaluru
Kammasandra recorded the highest property sales volume in Q1 2022 with 535, 84 and 37 transactions in the Affordable, Mid-Segment and Premium markets respectively. It also recorded the highest share of sales in the Affordable segment, with 81.55% of total sales falling in that bracket.
Other localities that drove sales volume were Uttarahali and Kodigehalli.
Hanamkonda Recorded the Highest Sales Volume in Warangal
Hanamkonda recorded the highest property sales transactions in Warangal in Q1 2022 with 652, 52 and 17 transactions in the Affordable, Mid-segment and Premium market respectively.
Madikonda saw the greatest share of sales in the affordable segment with 99.44% of its sales falling in the sub 45 lakh bracket.
Other localities that drove sales volume included Bhimaram and Warangal Fort.
Lease Activity Has Seen a Decline Across the Board
Leasing activity, in contrast with what is seen in the sales market, shows a decline in all geographies observed. Hyderabad showed the steepest decline QoQ with a decrease of 22.4%. However, there is room for optimism for the next quarter, as more and more educational institutions and offices open their doors for in-person attendance with the beginning of the new financial year.
Locality Wise Lease Activity in Bengaluru
Bheemankuppe saw the most rental activity in Mumbai in Q1 2022 with 76 transactions, and 70 transactions in Q4 2021.
Other localities that made up for the bulk of leasing activity in Bengaluru were Jayanagar and Koramangala, with a continued strong showing this quarter, carrying on from the last.
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