Bengaluru Real Estate: Adapting to the Water Crisis and Market Dynamics


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    Bengaluru, known as the Silicon Valley of India, faces a unique challenge amidst its rapid urbanization – a water crisis. This crisis has cast a shadow on the city’s real estate market, impacting housing sales and raising concerns about sustainability. Let’s delve into the intricacies of Bengaluru’s real estate landscape in light of these challenges.

    SegmentSales VolumeChange from Previous Year
    Affordable (< ₹50 lakhs)13,133 units-2%
    Mid-Range (₹50 lakhs – ₹1 crore)-7%
    High-End (> ₹1 crore)+50%

    Water Crisis Impact

    Bengaluru Water Crisis: While the water crisis looms large over Bengaluru, its direct impact on the real estate market remains debatable. Experts suggest that while the crisis is significant, it’s not the sole factor driving the decline in housing sales. Nevertheless, resolving the water issue is crucial for maintaining Bengaluru’s status as a commercial powerhouse and a preferred destination for businesses.

    Insights into Housing Sales Numbers

    Despite the challenges, Bengaluru’s residential market showcased resilience, with a total sales volume of 13,133 units in Q1 2024. Notably, the average weighted residential price witnessed a promising increase of 9% year-over-year, reflecting underlying strength in certain market segments.

    Housing SegmentUnits SoldChange from Previous Year
    < ₹50 lakhs993-68%
    ₹50 lakhs – ₹1 crore6,065-7%
    > ₹1 crore6,075+50%

    Office Space Transactions

    On the commercial front, Bengaluru continues to lead, recording robust office space transactions totaling 3.5 million square feet in Q1 2024. This underscores the city’s significance in the commercial real estate landscape, with substantial office completions indicating sustained growth momentum.

    Transaction TypeSquare Feet
    Global Capability Centres1.8 million
    Flex Office Areas0.91 million
    India-facing Business0.49 million
    Third-Party IT Services0.32 million

    Challenges and Opportunities

    While challenges persist, initiatives like the Karnataka Real Estate Regulatory Authority (K-RERA) aim to instill transparency and accountability in the sector. However, there’s a pressing need to address the overreliance on groundwater and private water tankers in large real estate projects. Standardizing data reporting and integrating water management practices into regulations can pave the way for a more sustainable real estate ecosystem in Bengaluru.


    In conclusion, Bengaluru’s real estate market faces headwinds amidst a water crisis, yet it exhibits resilience and potential for growth. By addressing affordability concerns and prioritizing sustainable practices, Bengaluru can navigate these challenges and emerge as a beacon of sustainable urban development.

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