Un­der­stand­ing the emerg­ing Ben­galuru realty mar­ket

HT Estates - - HTESTATES -

The Ben­galuru res­i­den­tial mar­ket can be clas­si­fied broadly into five mi­cro-mar­kets. The res­i­den­tial mar­ket of the city is di­vided fairly across the four zones (north, south, east and west) in terms of launches and ab­sorp­tion, with the ex­cep­tion of cen­tral Ben­galuru.

Dur­ing the first half of 2014, cen­tral Ben­galuru ac­counted for less than 1% of the to­tal new launches, as high prices and un­avail­abil­ity of land parcels de­terred de­vel­op­ers from launch­ing new projects. A prom­i­nent project re­cently launched in cen­tral Ben­galuru is Sanyog by Mythreyi Prop­er­ties at Wilson Gar­den.

South Ben­galuru has con­sis­tently wit­nessed a majority of new launches in both the first halves of 2013 and 2014, although its share de­creased slightly from 47% in the first half of 2013 to 45% in the first half of 2014. South Ben­galuru has gen­er­ally been a pre­ferred res­i­den­tial des­ti­na­tion for em­ploy­ees of the IT sec­tor due to the pres­ence of a large num­ber of IT com­pa­nies in IT/ITeS em­ploy­ment hubs such as Elec­tron­ics City, Sar­japur Road and Bannerghatta Road. So­cial in­fra­struc­ture like the avail­abil­ity of qual­ity hos­pi­tals and popular re­tail malls are some of the ma­jor rea­sons for res­i­den­tial de­mand in this part of Ben­galuru. Ad­di­tion­ally, prop­erty prices are rel­a­tively cheaper in the pe­riph­eral lo­ca­tions in the south, com­pared to the other mi­cro-mar­kets.

Dur­ing the first half of 2014, 71% of the units launched within the price bracket of ₹ 25 lakh to ₹ 50 lakh be­longed to south Ben­galuru.

Un­like south Ben­galuru, the east­ern and western parts of the city have been able to in­crease their share of new launches in the first half of 2014. While east Ben­galuru’s share in­creased by 21% in the first half of 2014 over the share in the first half of 2013, west Ben­galuru’s share in­creased by an im­pres­sive mar­gin of 33%.

On the east­ern front, cor­po­rates have made large in­vest­ments in of­fice spa­ces in lo­ca­tions like White­field and ORR East as in­fra­struc­ture ini­tia­tives fruc­ti­fied in tan­dem. This has in­creased the at­trac­tive­ness of east Ben­galuru as a res­i­den­tial des­ti­na­tion.

On the other hand, west Ben­galuru has been wit­ness­ing a con­sid­er­able amount of de­vel­oper in­ter­est owing to im­prov­ing in­fra­struc­ture.

North Ben­galuru ob­served a fall of 20% in new launches dur­ing the first half of 2014 over the share in the first half of 2013, as de­vel­op­ers were de­terred from launch­ing fresh projects on the back of lack­lus­tre re­sponse re­ceived by var­i­ous projects launched dur­ing the sec­ond half of 2013.

On the ab­sorp­tion front, cen­tral Ben­galuru has been able to main­tain its mo­men­tum dur­ing the first half of 2014, although it is in­signif­i­cant in terms of ab­so­lute num­bers and share. Lo­ca­tions like White­field and Elec­tron­ics City are wit­ness­ing re­newed trac­tion since the sec­ond half of 2013, while res­i­den­tial projects along the Outer Ring Road (ORR) con­tinue to do well. This trend is ex­pected to con­tinue even in 2014. The share of north and west Ben­galuru has ob­served the steep­est fall in ab­sorp­tion dur­ing the first half of 2014, to the tune of 24% and 30% re­spec­tively. This can be at­trib­uted to the ap­pre­hen­sion among buy­ers re­gard­ing a majority of projects be­ing lo­cated beyond the es­tab­lished res­i­den­tial ar­eas.

MAP: SAN­JAY KAPOOR PHOTO: KASHIF MA­SOOD

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