'Only 4,492 ready-to-move in flats unsold'

'Only 4,492 ready-to-move in flats unsold'

There are only 4,492 unsold residential flats in Bengaluru. Surprised? The study conducted by real estate consultant Jones Lang Lasalle (JLL) India observed that only 2.03 per cent of the ready-for-possession flats were unsold, while about 39.53 per cent (82,357 units) fell under the to-be-sold inventory, which were under construction as on December 31, 2015.

In his presentation on the report titled: ‘Analysis of unsold residential inventory in Bengaluru’ here on Monday, Ashutosh Limaye of JLL India said the demand for residential flats as well as villas was increasing in the last two years, while the supply was falling.

He said most pockets of Bengaluru were observed to have less than 50 per cent of the units available for sale despite stable launches. “South East Bengaluru is one of the most leading markets in terms of flats and villas launched and also has the highest volume of flats and villas available for sale,” he said.

JLL India further pointed out that the residential sales rate had been observed to be stable at about 9 to 10 per cent in 2015. The units to be sold is slowly declining quarter-on-quarter given the stable sales rate. The average price appreciation was in the range of 5 to 10 per cent on the location or type of property. Secondary sub-market, East Bengaluru and South East Bengaluru witnessed the maximum price appreciation since 2008, the study stated.

Limaye observed that while the to-be-sold inventory (under-construction projects) was declining quarter-on-quarter, only about 40 per cent of the units were available for sale. The price appreciation in residential properties was observed to be stable by about 5 to 10 per cent year-on-year, he said. However, JLL India maintained that they did not conduct a study on how many sold flats were vacant.

Earlier, Irfan Razack, chairman of CREDAI, said Bengaluru was the fourth largest city in the world to lease out space for office premises last year. This might lead to shortage in supply of quality residential flats in the future, he said.

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