Bangalore sees rise in residential demand
The residential property market in Bangalore saw an absorption of 4,645 units during third quarter against 4,290 units in second quarter.
The increase in demand was due to the home buyers shifting towards purchasing a property rather than paying high rents and also due to the improved sales in projects that are about to get completed.
According to a survey done by Jones Lang LaSalle’s periodical survey, unsold stock in third quarter was 36,822 units when compared to 32,854 units in second quarter, reflecting a vacancy rate of 50.6%, up from 49.5% in the second quarter.
Around 25 residential projects were launched across the city’s sub-markets in third quarter, which offered 8,613 units against 4,166 units in second quarter. Meanwhile, 12 residential projects comprising 2,175 units in various sub-markets were completely sold out.
The Hosur Road sub-market, comprising Electronic City, Bannerghatta road, Sarjapur road and the south-eastern parts of the outer ring road has 47.0% of the total new launches during third quarter while Bellary Road sub-market accounted for 18% of the total. The secondary sub-market comprising Indiranagar, Koramangala, RT Nagar, Sanjaynagar, CV Ramannagar, Old Airport, Banashankari, BTM Layout, Marthahalli, and parts of Sarjapur Road, accounted for 13.0% of the total and the Tumkur Road sub-market for 15.0%.
Capital values have appreciated marginally in various sub-markets due to increase in property price and sales volumes for most projects that are nearing completion. In the third quarter, the rental value rose due to shortage of built apartments which is likely to increase in the near future. In the fourth quarter there was a steady demand in the residential market.
Particularly in prime locations, of Bangalore city like Indiranagar, Koramangala, Jayanagar, RMV Extension, Sahakarnagar, RT Nagar and Malleshwaram, the demand for high-end properties was more.
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