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Quarterly residential real estate analysis of top 8 cities in India

Bangalore Real Estate Report Oct-Dec 2021

14203 Jan 20, 2022 Download Report
  • Average property prices in Bangalore remained muted, QoQ, whereas the average rental rates reported a negative growth by a three percent, YoY.
  • Bangalore recorded a steady flow of enquiries for residential apartments within Rs 80 lakh – Rs 1.2 crore. Areas, such as Thanisandra, Yelahanka, Hebbal, Hennur Road, Bannerghatta Road, Kanakapura Road and Hosur Road, garnered the maximum enquiries this quarter.
  • Potential homebuyers showed interest in land parcels within the Rs 60-80 lakh budget segment in Chandapura, Devanahalli, Attibelle and Hoskote.
  • A newer trend emerged in the city in which investors were seen inclined towards farmlands within Rs 45-65 lakh budget in areas such as Chintamani Road, Sakleshpur, Hosur, Chikkamagaluru and Coorg.
  • About 16 housing projects, i.e. 2,000 units, registered under K-RERA within Rs 80 lakh – Rs 1.3 crore. The city registered degrowth in the housing supply by about 30 percent, QoQ.
  • The subdued housing launches and sales kept the unsold inventory unchanged at about 67,000 housing units. The consumption might take a minimum of 10 quarters.

 

BANGALORE REALTY AT A GLANCE

Property Prices
Rental 'Asks'
Demand
Supply
* Property prices represent quarterly change * Rental 'asks' represent yearly change

* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com

 

99ACRES' OUTLOOK

The residential realty market of Bangalore saw modest improvement in site visits, enquiries and sales in Oct-Dec 2021. Average property prices in Bangalore remained muted, QoQ, whereas the average rental rates plummeted by athree percent YoY

The resale segment witnessed higher traction as homeowners agreed to negotiate further to close the deals. Potential buyers may continue to prefer ready units amid the fear of third wave, which may delay the completion timelines of ongoing and nearing completion housing projects.

The city saw a steady flow of enquiries from popular areas of North and South Bangalore in Rs 80 lakh to Rs 1.2 crore price bracket. The speculation of a downward revision in guidance value resulted in limited sale conversions, despite banks offering home loans at a 15-year low interest rates. With values getting reduced starting January 1 2022, the city could see better sales volume and property registrations in Q1 2022.

In line with the previous quarters, the demand for land parcels in Rs 60-80 lakh remained at peak. Investors were seen inclined towards farmlands - a new trend in the city.

Bangalore contributed only four percent to the new supply recorded across the top eight cities in India. As Omicron cases surged in the second half of Q4 2021, developers shelved new projects launches and concentrated on disposing off the existing inventory. Only 2,000 housing units were registered under K-RERA within Rs 80 lakh to Rs 1.3 crore in the quarter ending December 2021.

Unsold inventory in the city remained unaltered at about 67,000 housing units on the back of subdued residential launches and sales this quarter. The consumption might take a minimum of 10 quarters.

 

Key micro-markets across budget segments

Key micromarketsAverage Capital 'Asks'Average Rental 'Asks'Rental Yield
Within Rs 40 lakhBommasandra3,480 - 4,200123.89%
Kaggadasapura3,900-4,500154.18%
Rs 40 lakh - Rs 1 croreKR Puram3,860 - 5,150143.50%
Electronic City3,690 - 5,100153.64%
Yelahanka4,590 - 5,900153.29%
Rs 1 crore and aboveWhitefield4,880 - 6,840183.52%
Hebbal6,520 - 8,860142.22%
Marathahalli4,960 - 6,550193.68%

* 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

 

 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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