- Bangalore recorded the launch of new housing units within Rs 55 – 75 lakh. About 70 percent of the total new launches were in North and South zones in Jul-Sep 2020.
- The city will take about 15 months to dispose of the current residential inventory, which stands at about 75,000 housing units.
- East and North Bangalore bagged maximum sale enquiries within Rs 55-75 lakh.
- The luxury residential properties priced over Rs 1 crore saw more deal closures due to attractive discounts and flexible payment options.
- Demand for plotted developments continued to rule the roost in areas such as Devanahalli, Chandapura, Sarjapur Road, Attibelle and Hoskote. The land parcels are available between Rs 25 lakh and Rs 1.2 crore.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The residential market of Bangalore recorded modest signs of recovery in Jul-Sep 2020. The relaxation in lockdown led to a healthy rise in the site-visits this quarter. However, the unstable job market continued to dampen the sales volume. Despite the ongoing slowdown, builders remained reluctant to offer discounts, which kept the residential property prices unaltered, QoQ.
Due to market instability, most of the developers deferred their plans to launch residential projects to the next quarter. Among the new launches, South Bangalore clocked about 50 percent of the total launches in the city.
With subdued sales and restricted launches, unsold inventory stood at about 75,000 units at the end of Jul-Sep 2020. The city will take a minimum of 12-15 months to dispose of the current residential stock.
Furthermore, the demand for land parcels remained upbeat in areas such as Devanahalli, Chandapura, Sarjapur Road, Attibelle and Hoskote. The average price for this property type stood between Rs 25 lakh and Rs 1.2 crore. Many developers, such as Sobha Ltd, Shriram Properties Ltd, Provident Housing, Salarpuria Sattva Group and Century Real Estate Holdings Pvt Ltd., ventured into plotted developments this quarter.
The developer community have high hopes of sales revival from the upcoming festive season. Many Category A developers have also planned residential launches during Oct-Dec 2020. They may also launch attractive offers and rebates to attract homebuyers.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Bommasandra||3,200-4,000||13||4.17%|
|Rs 40 lakh - Rs 1 crore||Whitefield||4,900-6,400||19||3.68%|
|Rs 1 crore and above||Hebbal||5,500-7,900||18||2.78%|
* 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