As a vibrant IT hub and the highest revenue generating STPI location in the country, Bengaluru has the largest concentration of IT and ITES-BPO companies. With over 664 MNCs, 2116 IT companies, 248 BPOs and 183 biotechnology companies having their presence in the city, it is no wonder that NRIs are looking back at the garden city for resettlement.
The city has an enviable record of four Fortune-500 companies in its fold and 11 companies with a turnover of over US $1 billion in just one year and has 850,000 IT/ITES employees. The city has yet another record of the largest quantum of office space absorption in the country consecutively for years together.
The average capital value for Bengaluru‘s primary residential market stands at Rs 5,333 per sq ft. It has marginally increased by 1.4% during the second half of 2015 as compared to the first half.
According to LJ Hooker analysis, residential property market has witnessed a dip in its absorption trend and reached an all-time low sales velocity of 1.12% in the second half of last year.
The value of unsold inventory of residential development in the city increased by 4.3%. The unsold inventory size increased to 137.1 million sq ft in the second half of last year from 131.7 million sq ft in the first half, which is a 4.1% increase.
Months inventory level alarmingly increased to 31 months which is a 40.9% surge from the first half of 2015, an all time high record since 2012.
The market witnessed a 52% decline in the size of new launches in the second half of last year from the second half of 2014 in the residential apartment development; and on a yearly basis, the year 2015 new launches has dropped by 40% compared to the year 2014.
Out of 137.1 million sq ft of unsold apartment development, 91% is from the under construction projects (82,572 units), whereas 9% contributes to the ready and/or nearing completion projects (8,434 units).
The north-east region has the largest stock of unsold inventory valued at Rs 28,528 crore in under-construction projects.
The budget homes (Rs 30 lakh – Rs 60 lakh) holds the largest unsold stock of 37,834 units (valued at Rs 17,825 crore), which is 35% of the total unsold units.
The unsold inventory of 23,334 units of premium homes category is valued at Rs 36.044 crores.
The average price of under-construction project are quoted lesser than the ready and/or nearing completion units i.e Rs 5,147 and Rs 5,236 per sq ft respectively.
Plotted development had the highest sales velocity of 2.3% in the first half of 2015 now has come down to 1.36% in the second half of 2015.
Apartment, villa and row house development also has low sales velocity of 1.11%, 1.28% and 0.74% respectively, which is lower than the first half of 2015.
Row house developments’ months inventory reached to 42 months.
Credits News 18