Here's how Bengaluru's water crisis has affected real estate sales as per Knight Frank report
office demand in the IT city remained flat at 3.5 million square feet, a report by Knight Frank has said.
Sales Decline in Affordable Segment
“The less than ₹50 lakh housing segment saw sales decline by almost 65% to 70% in the first quarter of 2024 which has brought down the overall numbers. The sales in the ₹50 lakh- ₹1 crore residential segment has dipped by 7 percent. This is primarily on account of the affordability challenges faced by buyers of this segment. This may be a temporary blip,” said Vivek Rathi, head of research at Knight Frank India, at the launch of the Knight Frank titled India Real Estate: Office and Residential Report (January — March 2024).
Rise in Sales of High-End Houses
Having said that, sales of houses in the more than ₹1 crore segment have gone up by almost 50% despite the taps running dry in the city, he added.
Water Crisis Impact Debated
Asked if the water crisis in Bengaluru has had an impact on the real estate market, Shishir Baijal, chairman and managing director, Knight Frank India, told reporters that the “water crisis has not had too much of an impact on the housing sales trajectory and cannot be attributed to the decline in sales or the market performance. Having said that, the issue has to be sorted as Bengaluru is an important commercial market and a favorite city for office space occupiers. It is the commercial leasing capital of the country. Government bodies will have to get around to resolving the water issue,” he added.
Bengaluru's Housing Sales Numbers
The residential
