Bangalore has always been one of the most prosperous markets for real estate according to experts and analysts. Going by Indian real estate reports, Bangalore has been the only city in India to have successfully defied the slump in the market. The city is now witnessing a boom in real estate demand with customer interest rising to unmanageable levels for developers who are struggling to cope up with supply demands. Supply of properties is sufficient in the Rs. 1-5 crore luxury housing segment but this is not where the maximum demand for property lies according to several market observers. Even in the period between April and June 2015, when almost every property site in India has been highlighting the fractional slump in realty, Bangalore has defied trends to remain profitable and the realty market grew by another 3 percent in this period according to reports.
Bangalore is an exclusive case where buyer demand and sales volumes are rising in unison. However, the catch lies in the limited supply in high demand segments and the abundant supply of properties in ultra luxurious categories which is not doing developers any good. Most residential properties in Bangalore that are priced between Rs. 1-2 and 2.5 crore are ready to be used according to market reports and studies. These two luxury housing categories have supply levels surpassing 60 percent in case of ready to move units while under construction properties take the remaining 40 percent chunk of this market. However, overall supply volumes are considerably lower in middle income and affordable housing segments which are witnessing skyrocketing demand of late.
Demand for residential property in Bangalore is majorly concentrated in the Rs. 40 lakh to 1 crore segment and this range does not have ample properties to be sold off to aspiring buyers. Buyer volumes are quite high in Bangalore in this segment though the supply levels are exactly opposite! This explains the new found dilemma that most Bangalore developers have found themselves in. Real estate in Bangalore India had witnessed most developers shift towards launching projects priced beyond Rs. 1 crore owing to anticipated demand from high net worth individuals and NRIs. Yet, end users have been driving demand and their maximum budget range touches approximately Rs. 80 lakh. This is one of the biggest reasons for pilling up inventory in the luxury segment even though most of these properties are ready for possession.
Developers are steadily shifting their focus towards building residential units that are sized within 900 sq ft instead of 1200 sq ft and above. Developers are mostly building 2 BHK apartments now within mid-income and affordable housing segments owing to pent up demand amongst residents. These two segments are witnessing huge demand from first time home buyers who are looking for properties that are ready for possession or nearing completion. Yet, ironically, only luxury properties fit the bill in this regard! Most mid income and affordable projects are still being developed and many have just appeared on the drawing board!.
Bangalore is an exclusive case where buyer demand and sales volumes are rising in unison. However, the catch lies in the limited supply in high demand segments and the abundant supply of properties in ultra luxurious categories which is not doing developers any good. Most residential properties in Bangalore that are priced between Rs. 1-2 and 2.5 crore are ready to be used according to market reports and studies. These two luxury housing categories have supply levels surpassing 60 percent in case of ready to move units while under construction properties take the remaining 40 percent chunk of this market. However, overall supply volumes are considerably lower in middle income and affordable housing segments which are witnessing skyrocketing demand of late.
Demand for residential property in Bangalore is majorly concentrated in the Rs. 40 lakh to 1 crore segment and this range does not have ample properties to be sold off to aspiring buyers. Buyer volumes are quite high in Bangalore in this segment though the supply levels are exactly opposite! This explains the new found dilemma that most Bangalore developers have found themselves in. Real estate in Bangalore India had witnessed most developers shift towards launching projects priced beyond Rs. 1 crore owing to anticipated demand from high net worth individuals and NRIs. Yet, end users have been driving demand and their maximum budget range touches approximately Rs. 80 lakh. This is one of the biggest reasons for pilling up inventory in the luxury segment even though most of these properties are ready for possession.
Developers are steadily shifting their focus towards building residential units that are sized within 900 sq ft instead of 1200 sq ft and above. Developers are mostly building 2 BHK apartments now within mid-income and affordable housing segments owing to pent up demand amongst residents. These two segments are witnessing huge demand from first time home buyers who are looking for properties that are ready for possession or nearing completion. Yet, ironically, only luxury properties fit the bill in this regard! Most mid income and affordable projects are still being developed and many have just appeared on the drawing board!.
Courtesy By :- http://www.artipot.com/articles/1935222/an-insight-into-the-bangalore-real-estate-market.htm
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