- Bangalore saw improvement in enquiries, site visits and sales volume in the first quarter of the year.
- The city saw an addition of about 48 housing projects, which accounted for only eight percent of the total housing launches across India. Northern and Eastern belt bagged about 70 percent of the total number of launches.
- Sales gained steam due to historically low home loan interest rates, stamp duty cut, stable property prices and attractive discount offers.
- Prime locales of northern and eastern belts, such as Whitefield, Electronic City, Devanahalli, Hebbal, Jakkur, Yelahanka, Hennur and Thanisandra, witnessed improved sales within Rs 80 lakh.
- Developers continued to lure serious buyers with attractive discounts such as free gold coins, interior work and flexible payment plans.
- Demand for plotted developments remained upbeat in areas, such as Sarjapur Road, Chandapura, Devanahalli, Attibelle and Hoskote, for land parcels priced under Rs 1 crore.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The residential market of Bangalore witnessed a moderate revival in Jan-Mar 2021, backed by historically low home loan interest rates, attractive discounts, flexible payment plans and reduced stamp duty rates. The pace of recovery strengthened with site visits and enquiries reaching pre-pandemic levels. The second wave of COVID-19 in the last month of the quarter had minimal impact on the site visits in the city, which recorded a growth of 18 percent in total housing sales in Jan-Mar 2021 vs Oct-Dec 2020. North and East belts witnessed improved sales volume for ready units priced under Rs 80 lakh.
The reduction in stamp duty from five to three percent for properties priced between Rs 35 lakh and 45 lakh supported the revival. However, the stamp duty cut benefitted only a smaller segment. The builders, simultaneously, provided special discounts for higher budget segments to bolster sales volume, thereby improving cash flows.
The average property prices remained muted for the third consecutive quarter. The chances of reduction in property
prices are sleek since the rising cost of labour and raw material have truncated builders’ profits, who are now operating
at low profit margins.
Another step to instil faith and transparency in the real estate sector by Karnataka RERA has been the penalisation of builders for Rs 10,000 every month for not filing quarterly updates on the portal. About 800 housing projects have failed to file the update.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Bommasandra||3,100-4,000||12||3.89%|
|Rs 40 lakh - Rs 1 crore||Thanisandra||5,300-6,100||17||3.27%|
|Rs 1 crore and above||Whitefield||4,900-6,500||19||3.52%|
* Note: Rental Yield has been calculated for a 1,000 sq ft apartment. **Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter. ***The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments