Realty Check: Performance Scorecard of Bangalore in the First Half of 2014
Bangalore, the Silicon Valley of India, has witnessed tremendous growth in realty market in the last few years. Its thriving Information Technology and startup sector, improvement in social infrastructure and connectivity has played instrumental role in growth of real estate market. While major property markets like Mumbai and Delhi/NCR shrunk during the slump of 2013, Bangalore sailed safe from the crunch, recording steady increase in property values.
Though number of new unit launches has steadily come down in last few quarters in Bangalore registering only 9,746 units launched in quarter ending June 2014 compared to 26,469 units launched in quarter ending June 2013, the prices have increased 8 – 10% in various micro markets. Incidentally J.P.Nagar (Kanakpura Road) has seen more new unit launches in first half of this year compared to traditional favorites such as Whitefield and Electronic City.
Hennur Main Road (especially the stretch closer to Narayanpura) saw 14% price increase in last 4 quarters, highest amongst all micro markets in Bangalore and lowest increase was seen in Banashankari (only 1%) .
Bangalore continues to be a mid-segment market with ~51% of new units launched in 30 – 75 Lakhs budget unlike Mumbai where only 20% of new launches were in the budget range of 35 – 75 Lakhs.
Multiple quality projects were launched in Bangalore in first half of year 2014 such as Prestige Falcon City, Assetz Marq, Purvankara Palm Beach, Shapoorji Park West and many more.
New unit sales in Bangalore have slowed down 40% to 11,519 units in quarter ending June 2014 from 19,256 in quarter ending June 2013. This has led to increase in unsold inventory to 92,263 units which is nearly 24 months' worth of unsold inventory. Though on a higher side we are not worried of this unsold inventory as we see a lot of pent up demand in the market driven by increasing migration in search of job and better lifestyle. City also attracts investments from NRIs who prefer Bangalore over other Indian cities due to its beautiful weather and employment opportunities.
To get regular updates about new launches in Bangalore, visit our site PropTiger.com.