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South East Bengaluru offers most available new launches even as the unsold stock piles up

23:46

From a recent study by the global real estate consultant Cushman and Wakefield excerpts state that areas like Hosur Road, Sarjapura Road and Electronic City have registered the maximum number of new launches in Bengaluru. The report says that out of the 4100 new launches in Bengaluru in the first quarter of 2015, 41 percent of these were in the South-East submarket of Bengaluru, mainly in areas along Sarjapura Road and Hosur Road. The price appreciation in the middle segment was noted to be in the range of 3 to 9 percent on a quarter-on-quarter basis.

This is also true that the city registers an all-time high of unsold stock of more than 1.01 lakh units of unsold inventory amounting about Rs. 85 thousand crores in revenue terms. This does not mean there is no demand and new launches are restricted, opines the expert realtor. It is true that huge demand exists in the higher luxury segment where per square feet ranges from Rs. 20, 000 to Rs. 30, 000 and also there is corresponding demand in the lower segment too. But in the areas along Sarjapura and Hosur road the new launches have been noted in the mid segment.


The market watchers and the statistics point out that there have been two significant positive market movements that were observed in the first quarter of 2015. The first one being a rise in the net absorption rates in the market and the second being a rise in the new launches too. It is interesting to note that there has been a rise in the new launches in the last quarter despite such marked unsold stock. The micro-market watchers have noted that much of the pre-launch activity has taken place in the areas along Sarjapura Road, Bannerghatta Road and Hosur Road.

In this situation the market trend watchers opine that the market seems to be stable and the prospective buyers can go in for a plunge in the next six months. They opine that there is a possibility that the market will become buyers’ market but this can be comfortably proclaimed that the market isn’t either seller driven too. It will take time for the market to become buyer’s market where the chances of negotiation of the buyer will be likely to bear more fruit.

Available Housing Options
The market watcher opines that average capital value of the properties in Electronic City is in the range of Rs. 3, 000 to Rs. 3, 900 per square feet. In Hosur Road it varies in the range of Rs. 3, 600 to Rs. 5, 000 per square feet. In areas along Sarjapura Road the prices vary from Rs. 4,100 to Rs. 5, 800 per sq. feet. The 2 BHK apartments are mostly around 550 to 1150 square feet and the 3 BHKs are around 1100 to 1300 square feet in size. The properties are available from both renowned and local developers in any area.

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13 comments

  1. Since from the last couple of years Bangalore citizens are more tends towards finding living space in electronic city although hosur road was in demand for commercial purpose from the beginning of the connecting flyover. This increasing demand made the property value rise in such a rate that now these areas are considered as the costliest places of Bangalore.

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  2. Comparing to North side South Bangalore has more people who came from different parts of India. These people always fund off apartments or flats as they don't get tense in building house for them. So with the rise of demand in apartments in these area the price for these apartments are also increasing with a scope of good rental business in south side.

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  3. Infra structural wise south Bangalore is one step ahead of North Bangalore and talking about the unsold inventories than most of the Bangalore people seeking for apartment are preferring south as comparing to north. The rise of unsold inventory is just a result of over estimation of demand or high price of the property.

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  4. Roopesh Khatri17 June 2015 at 00:10

    Most of the unsold inventories are from high end budget builders which can be only affordable by top segment people. Where as most of the bangalore people falls under mid segment it professional who are looking for luxurious flats but with affordability. So even if the presence of unsold inventories mid budget flats has been always in demand.

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  5. Joythi Prakash19 June 2015 at 02:01

    I am very eagerly looking for a flat in south sides and I have been came across with many builders and their apartments. Believe me most of the flats are highly priced that a common can touch them. I think these builders are building these flats only for high end customers while most of the customer searching for flats are IT Professionals who comes under mid segment. May be within few years they will realize it will come up with some budgeted flats.

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  6. Flats and apartment seeker in south Bangalore is more than that of in north Bangalore so builders are coming with more projects here. Since demand is more so more no of construction happens here but as we know people in India are price sensitive specially mid segment people. The unsold inventory is growing only because of the apartments are highly priced and people are investing on low budget flats.

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  7. Hi I am looking for a flat in south Bangalore, I have visited many builder but the price were so high to touch. I am looking for a ready to occupy flat here, I know it cost more when the project is ready to occupy but I have some urgency so can anyone suggest me some good project in south Bangalore.

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    Replies
    1. Hi Rupantar, South Bangalore is a large place and until you point out the exact place I can not recommend any builder or project name to you. Still there are few builders who named for their affordable projects and dreamz infra is one of them. They have lots of projects in south side from which most of them are under construction project you better visit their office once to get the details.

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    2. In most cases under construction and ready to occupy flats are costly than the pre launched ones. Still if you are looking for ready to occupy flats only than I would need some more detail on your budget without that I can't assist you. Look for those property which are in outer Bangalore or find some budgeted builder like Dreamz Infra, there are many more but you need to contact with them.

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  8. The price of apartments in south Bangalore is high as compare to north Bangalore because people lives in south side came from different part of India who prefer living in apartments. If the unsold inventory is increasing than what should be the next step of government of the builder? Are they going to reduce their price or government will give some relief in tax?

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    1. Deduction in tax is not seems to be possible but watching this rise in unsold inventory may be the builder will come with some rate cut from their project sacrificing some from the amenities. This would be a serious headache for builders.

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    2. Well we can only hope for a deduction in price because there is no such news from the government side or from the builder side. Although the high end builders are now much aware of the market condition and are coming with low budget flats. But there still there is doubt that are they going to maintain the same quality as they used before?

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  9. The unchanged price of flats in apartments for high segment builders is the only reason for this rise in unsold stocks in south Bangalore. When people are easily finding low budgeted flats with similar amenities then why anyone will buy these flat? Only for the sake of builders reputation no one will going to pay them.

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