Bangalore property market remains stable

The Bangalore office market witnessed healthy transaction activity in May, while vacancy rate declined nominally due to stable demand amidst limited fresh supply, mentioned Jones Lang LaSalle (JLL) India, in a recent report. Some of the big transaction in the office space market were Axis Aerospace & Technologies leasing space in Vaswani Centropolis, KPMG leasing space in Salarpuria Hallmark 1 and Ericsson leasing in Umiya Business Bay. However, the city saw marginal increase in demand for residential apartments in May. Most of the new residential projects launched were on and along Hosur and Bellary Roads. The capital values also appreciated marginally across various sub-markets due to increases in sales volumes and new projects launches at prices above the market average. Demand for residential units has been more evident in the mid-end category. During FY 2012, Bangalore witnessed the launch of approximately 9700 units which are scheduled to be completed in the next 2-3 years. "Property in the range priced at Rs 3000-4000 per sq ft is moving faster in the market now. Sales have been steady since the beginning of the fiscal year," says Irshad Ahmed President Irshad Property Matter, one of the large brokerage houses in Bangalore As of March 2012, nearly 119000 residential units are under various stages of construction in the Bangalore market. Bangalore has met with encouraging absorption, with all the regions witnessing more than 60% of their units having been sold. On the retail front there were no major retailers leasing space during the period due to unavailability of new malls coming on stream. "Vacancy rates, rents and capital values in the existing malls remained stable over the past two years," said the JLL report. source: http://economictimes.indiatimes.com/markets/real-estate/realty-trends/bangalore-property-market-remains-stable/articleshow/14098290.cms