June 1 2015
Major Highlights:
- Presence of IT industry and improving infrastructure kept the real estate market in Bengaluru buoyant.
- The growth, however, slowed down in comparison to Oct-Dec 2014 due to unsold inventory. As a result, number of new launches ped by about 30%in Jan-Mar 2015.
- South and East Bengaluru witnessed the maximum number of new launches in the city.
- Emphasis on infrastructural development in the Karnataka Budget is expected to drive real estate in the coming year.
Bengaluru, 28thMay, 2015: 99acres.com Insite is a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. The report not only captures the significant trends but also analyses and highlights the insights that make it valuable for both investors and end users. The report also includes an in-depth supply analysis to enable sellers and buyers determine the direction of the market.According to the report on Bengaluru, the capital market witnessed a growth of 2% in Jan-Mar 2015 over Oct-Dec 2014. The rental market saw a surge of 6% in the last one year, i.e. between Jan-Mar 2015 and Jan-Mar 2014. On the supply front, Bengaluru witnessed a considerable increase in the number of properties available for sale, but a slow absorption of units. The city had 47% properties available as ready-to-move-in.
Commenting on the report, MrNarasimhaJayakumar, Chief Business Officer, 99acres.com,said, Bengaluru has seen rapid movement of property prices in the last few years. However, the growth slowed down to unsold inventory piling up, leading to fewer new launches this quarter. With the Karnataka Budget emphasizing on affordable housing, the real estate market in the city is expected to perform well in the coming years.Luxury properties in North Bengaluru are doing well, North Bengaluru becoming quite expensive now for first time buyers.
Price Analysis (Jan-Mar 2015 vs Oct-Dec 2014):
East and SouthBengaluru
- Amongst all zones, East and South Bengaluru recorded the maximum average price hike of 3%, each.
- Seamless road connectivity and upcoming metro pushed property prices in Banashankari and Subramanyapura by 19%-20%, highest in both East and South Bengaluru.
- With buyers preferring peripheral areas over established areas, BTM Layout and Akshaya Nagar from the South emerged as the top non-performers after registering a of 10%-20% in property prices.
- From the East, property prices in ITPL dipped by 9% this quarter.
North, West and Central Bengaluru
- While North and West Bengaluru recorded a price hike of 2% in the last three months, prices in Central Bengaluru ped by 4%.
- Increasing industrial activities, growing IT companies and affordable properties were the major growth stimulators for North and West Bengaluru.High ticket inventory and spilling housing demand led to a downfall in Central Bengaluru.
- Connectivity by Metro propelled property prices in Magadi Road by 16%, the highest in the West. Tumkur Road followed with 9% price hike owing to factors such as proximity to the ORR, development of SEZs and other infrastructural projects.
- Out of the three zones, Richmond Town from Central Bangalore recorded the highest of 9% owing to housing demand for luxury properties spilling over to peripheral areas.
Rental Analysis (Jan-Mar 2015 vs Jan-Mar 2014):
East and South Zone
- The average rental values in the city spiked by 6% in the last one year (Jan-Mar 2015 over Jan-Mar 2014). Maximum demand for rental accommodations was witnessed in localities easily accessible via the metro.
- While the rentals in South went up by 6%, that in East went up by 4%. The planned radial development of Bengaluru ensured all-round growth along the ORR stretch.
- Banaswadi from the East and JP Nagar 5th Phase from the South emerged as the top performers with 20% price hike, each. Maximum demand was noted from the IT professionals working in these areas.
- Housing price in Kadugodi from East Bangalore and Arakere from South Bangalore witnessed a of 13% and 7% respectively.
North, West and Central Zone
- North, West and Central Bengaluru saw the rentals going up by 6%-7%. Increasing industrial activities in North and South and proximity to the Central Business District in the Central zone worked in the favour of their respective rental markets.
- Rentals inRaja Rajeshwari Nagarin West Bangalore increased by 8% owing to its proximity to the IT companies and planned metro connectivity.
Supply Analysis:
- Availability of Different Types of Property- Residential apartments constituted almost 80% of the entire market with maximum demand and supply noted in peripheral areas closer to the IT hubs in the city. Builder floors remained a subdued trend in the city with least supply.
- Availability of Property in Different Budgets- Mid income housing category (Rs 40-60 lakh) and high income housing category (Rs 60 lakhRs 1 crore) has equal supply share in the market. Availability of ultra-luxury properties (Rs 2-5 crore) went up slightly in Jan-Mar 2015 over Oct-Dec 2014.
- BHK-wise Distribution of Property- Mid sized2BHK units were the most supplied and thus, captured almost half of the market in Bengaluru. 3BHK units were the next most supplied in the city (40% market share).
- Ready to Move vs. Under-construction- Though more than half of the total housing units in Bengaluru were under-construction, there was an increased supply of ready-to-move-in properties by 4%. Out of the total number of under-construction properties, maximum were offered in the budget range Rs 40-60 lakh (mid-income housing).
About 99acres.com:
Launched by Info Edge India Ltd. in September 2005, 99acres.com is a gateway to the one of the fastest growing property markets of the world, an information 'exchange' for buying, renting and selling of all types of residential and commercial properties anywhere in India. The website enables easy access to a huge property bank and allows direct connect with brokers/builders in cities as well as remote parts of the country. With over 8.5 million visitors visiting the website every month looking for real estate solutions, 99acres.com over 8 lakh residential and commercial property listings and over 90,000 new projects. Not only this, it has the highest traffic share, time spent on site and maximum page views, making it the most popular real estate portal in the country. Backed by a strong team and a network across 40 cities in India, 99acres.com has garnered faith and support of the real estate community in India within a very short time span.
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