The real estate sector in the last three years was in a lull. With the swearing in of the new government things were expected to change in 2014. The industry was plagued with decreased demand, poor buyer’s sentiment, high prices and a demand supply gap. The unsold stock went on increasing in different cities of the country with Delhi topping the list in the third quarter of the financial year 2014 – 2015. Now Bengaluru tops the list with a whooping figure of unsold inventory of about Rs. 85, 000 crore due to unfavourable market conditions in the whole of the country.
The statistics say that around 84 % of the total inventory is from the segment of apartments alone and the majority of the unsold inventory accounts for the tier I and II builders. The experts, the market watchers and reports from various sources feel that there are chances of slight price correction in the first half of 2015 in Bengaluru real estate.
But the story of the luxury project is completely different and this segment has touched a record pre-sales value of Rs. 30, 000 per sq. ft. in one of the luxury residential projects in an upmarket area of Sadashiv Nagar area of Bengaluru. Few realtors feel that luxury housing is one of the most dynamic market segments with high demand in the market of Bengaluru. In the year 2014 the city of Bengaluru witnessed launches of about 35 big sized luxury residential projects consisting about 6, 000 residential units. In contrast this figure was 4, 200 units in 2013. These luxury homes of Bengaluru are priced between Rs. 10, 000 per square feet to Rs. 36, 000 per square feet on varied locations.
Till a year back the housing sector of the Southern part of India including Bengaluru had remained a bit more resilient to the market changes due to positive macro-economic factors supported by healthy job generation by the Information Technology sector which fostered steady absorption rates across the south Indian cities.
The expert realtors feel that the salaried employees are being a bit more cautious as the economical metrics do not show happy figures. The builders are busy in clearing their unsold stock and are more flexible regarding pricing their new projects. Few builders and construction companies are witnessed to run free EMI periods for few of its middle income housing projects.
Bangalore unsold inventory
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Unsold inventory of Bengaluru reaches a record high at Rs. 85, 000 crore
The real estate sector in the last three years was in a lull. With the swearing in of the new government things were expected to change in...
