Residential Market in Bangalore
When the going gets tough, the tough get going. So goes the adage. The city is on the verge of strong supply and shrinking demand. Developers are experimenting new ideas and concepts in the construction to develop a niche for residential projects. Recent survey conducted by property consultant on city residential market reports that market witness new experiments in terms of project designs, distinctive concepts and facilities among others.
Lucrative offers such as no pre-EMI option till the completion of the project is nothing new. But they have never been aggressively implemented before. Resorting to cutting edge competition among competing developers is concept or technique to lure the end users who are unable to bear the interest burden till the completion of the project. The city recently witnessed the launch of an eco-friendly project which is unique in the country’s residential segment. There are some who are planning to club health care services in their projects.
With a need to lure the end users unable to bear the interest burden till the completion of the project, competing developers are resorting to cutting edge competition among themselves through incorporation of new concepts
The residential market continues to remain stable in both capital and rental values in the sub markets like Palace Orchard and Yelahanka among others due to supply levels exceeding demand. In some areas, prices are under pressure with developers willing to negotiate marginally owing to a slowdown in demand. Affordable homes are now coming up in areas like Whitefield and Yelahanka. While capital values are hovering in the range of Rs 2,350 to Rs 3,000 per sq.ft., rental levels are in the region of Rs 12 to Rs 13 per sq. ft. per month.
Gross yield on residential prime properties in city areas are hovering in the range of 5 to 8 per cent. Residential areas like Koramangala, Indira Nagar and Palace Orchard among others are fetching 7-8 per cent. It is a clear indication of the growing demand for leasing options in the sought after locations. While the supply level is 2 per cent in central locations, it is 4 per cent in Cooke town, 33 per cent in Whitefield and 61 per cent in other locations. The city has augmented a supply level of over 2.4 million sq. ft. in the prime areas of the city.
Three mega low-cost housing projects were launched in the city recently by Shri ram Properties, Golden Gate Properties and the much-publicized subsidiary of Puravankara group’s Provident Housing and Infrastructure
The bear hug has also necessitated leading developers to offer low-cost housing below Rs 30 lakh. Three mega low-cost housing projects were launched in the city recently by Shri ram Properties, Golden Gate Properties and the much publicized subsidiary of Puravankara group’s Provident Housing and Infrastructure. Affordable housing project have been opted by leading developers considering the current market condition.It is also because over 2 lakh pending applications are lying with the state housing board department for development of homes below Rs 30 lakh. The housing finance companies and banks report that there has been a surge in demand for home loans for affordable homes priced between Rs 15 lakh and Rs 30 lakh.
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