Realtors focus on lower budget units

Realtors focus on lower budget units

Bengaluru is going the Mumbai way in the residential space, with realtors being very bullish about the lower budget residential units that cost between Rs 40 lakh and Rs 80 lakh for 700 sq ft to 1,000 sq ft area.

Interacting with Deccan Herald at the launch of the second edition of the Residential Investment Advisory Report 2016, Knight Frank South India Executive Director Satish B N said that many realtors have switched their strategy towards this, and are finding it very advantageous.

“People have become conservative and are very much conscious of spending their money. Since monthly earners of around Rs 40,000 are eyeing apartment purchases, properties to the tune of Rs 1 crore and above have taken a backseat in the city. Builders are very conscious on the utilisation of space in these apartments,” Satish said.

When asked about the number of units, he said the company is yet to calculate it. “But compared with last year, new launches have come down in 2015. Since new launches have decreased, it has reflected in sales too. In this scenario, builders are focused on reducing the inventory and are making as much money as possible on new projects. Now the inventory has come down and demand is picking up,” he said.

Residential market joy
The residential property market scene in Bengaluru is very comfortable when compared with other cities, where oversupply and slack demand have dampened the sentiment.

The Knight Frank report states that Panathur and Varthur, located in the east of the City, and abutting employment hub Whitefield, will witness price appreciation of 61 per cent by 2020.

“Tanisandra is also growing, with Peripheral Ring Road, because of its proximity to the metro service. It will witness an appreciation of 55 per cent  by 2020. But Bengaluru South, comprising of Koramangala, Bannerghatta Road and Sarjapur, will witness slackened price growth due to lack of substantial incremental employment opportunities, and poor infrastructure development,” Satish said, quoting the report.

On the commercial space, he said there are supply constraints. “Customers will have to opt for build-to-suit by approaching builders. Last year, more than 11 million sq ft of commercial space was sold in Bengaluru. I am expecting the same demand during the next year, but it is very difficult to meet it as builders have to go to the outskirts of the city.”

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