The year that started on a positive note for Bangalore’s housing segment with robust sales getting recorded in the first two months, received a jolt with the 40-day complete lockdown period followed by several intermittent and partial lockdowns across the city. Market sentiment remained weak due to several construction bans, reverse migration of labors and bans on site visits, and resultantly, realty transactions declined by nearly 57 percent, YoY. New launches also nose-dived by 48 percent from 20,890 units in H1 2019 to around 10,800 units in H1 2020. Nevertheless, unsold inventory dropped by nearly 10 percent to stand at 77,040 units.
The stamp duty reduction in tandem with the six-month extension for project registrations under Karnataka RERA, expanding metro network and the technological wave in the realty sector led to the revival of sorts in H2 2020. From digital launches to indirect price benefit schemes, such as no-EMI till possession and complimentary gifts compounding up to 10-15 percent of the project cost, builders adopted various strategies to reinforce the housing demand. Ready homes in Rs 45-60 lakh budget seized nearly 70 percent of the popularity share. Areas such as Varthur, Panathur, Yelahanka, Sarjapur, Marathahalli, Thanisandra, and Whitefield, remained the prime focus of both builders and homebuyers.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
Overall, Bangalore’s realty was seen emerging from the lows of the COVID-19 induced slowdown. The construction of 4.3 lakh low-cost units under various housing schemes, and about 27 percent annual hike in the RERA-registered projects to 3,704 units were also responsible in lifting market sentiment up. The increased office space absorption and the proposed expansion of the Outer Ring Road (ORR) also indicate realty growth on the cards.