JOIN USBengaluru residential market slumps in second half of 2015
There has been a slump in demand for residential units in Bengaluru in the second half of 2015. This is because of a dip in sales of affordable, high-end and mid-end units. The demand slumped by nearly 28 percent in the second half of 2015 compared to the first half, a study by a research consultancy has shown.
Growth in residential units has been seen mainly in the southern, south eastern, eastern and northern sectors of Bengaluru. Prime housing locations like Whitefield, Varthur and Sarjapur Road showed a reasonable demand for homes in the 2-3 BHK segment mainly from the IT/ITES population. Old Madras Road, Krishnarajapuram and its neighbourhoods reflected a respectable demand.
Hennur Road, Thanisandra and Hebbal in north Bengaluru and Yelahanka towards north experienced several closures of transactions owing to attractive pricing.
The premium and luxury segment witnessed limited demand, which was concentrated in the eastern parts of Bengaluru, while central and off-central areas in the city witnessed a marginally lower demand compared to the first half of 2015, the real estate study by CBRE states.
On the supply side, Bengaluru did not launch too many new projects in the second half of 2015 and focus among builders was to reduce inventory.
A majority of new launches were concentrated in the high-end/mid-end segment, which accounted for more than 70 per cent of all project launches in the city during the period under review.
Key projects
Some key projects launched included SP Park West on Tank Bund Road, Skylark Royaume on Hosa Road, L&T North Star at Hebbal, Brigade Orchards Juniper at Hennur Road, Brigade Plumeria at Kanakapura Road, Sobha Square and Legacy Salvador at Yelahanka and Ozone Promenade at Mahadevapura, Whitefield.
Sustained demand
In terms of rentals, values in the premium/luxury segment in the off-central, southern and south eastern locations appreciated by 6-10 percent owing to sustained demand from IT/ITES workforce in the region. Likewise, the high-end and mid-end segment in the southern and south eastern Bengaluru witnessed a rental appreciation of 8 to 10 per cent compared to the first half in 2015.
On a year-to-year basis, all micro markets witnessed a rise in capital prices in the range of 1 to 10 percent in the premium/luxury segment. North Bengaluru witnessed a marginal dip in capital values to the tune of 3 to 4 percent in the high-end and mid-end segment, the research study has shown.