Home segment launches spurt 33% in B'lore

Home segment launches spurt 33% in B'lore

The first six months of 2013 saw a mixed trend in the real estate space in the city, with the overall launches up 33 per cent in the first six months this year (H1) compared to the same period last year.

However, office absorption declining by 37 per cent during the period, which was offset by 22 per cent rise in the residential segment, according to research reports released by property consultancy firm Knight Frank here on Monday.

In all, about 28,000 units were launched in H1, with  maximum launches in south Bangalore, the report said.

Absorption of residential units was up 22 per cent during H1. Mid-end homes were the most popular in a stable price environment and demand was primarily driven by IT/ITeS sector, according to the residential report.

The Executive Director-South, Knight Frank, Satish B N said, “The demand for mid-end homes seems to be the trend popular with developers who are consciously launching new projects that would appeal to customers in the current economic environment. Price ranging between Rs 60 lakh to Rs 1 crore per apartment seems to be the effortless driving force for residential growth. The existence and new IT Parks in and around ORR, North Bangalore and Whitefield areas with active leasing by large IT/ITeS firms for their consolidation/ expansion has also led to a large demand for residential units in those areas.”

The  Chief Economist, Director-Research & Advisory Services, Knight Frank India, Samantak Das, said, “Bangalore's residential market has shown strong traction during H1 2013. Demand is likely to be concentrated around the residential projects along the Outer Ring Road.”

The twin factors of good connectivity and favourable pricing will sustain demand, the report said.

On the office front, absorption saw a decline of 37 per cent in H1 at 3.98 million sq ft, compared to the same period last year, mainly due to subdued economic conditions that led to postponement of occupancy. The IT/ITeS sector accounted for 61 per cent of total absorption, followed by manufacturing sector at 10 per cent, according to the office research report. Whitefield and Outer Ring Road emerged as preferred locations due to abundant supply and competitive rentals, the report added.

Sentiment Index on anvil

To capture perceptions and expectations of industry leaders to measure the overall sentiment of the Indian real estate sector, Knight Frank announced the launch of a quarterly tracker in partnership with trade body Federation of Indian Chambers of Commerce and Industry (Ficci).

This was announced by the two organisations here on Monday.  The index will also track trends of launches, sales volume, price and credit availability for residential and office space segments.

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