From ET Realty
“The city has witnessed slower sales of existing inventory, resulting in reduced new unit launches. However, in comparison to the other cities, Bengaluru has shown an exceptionally stable market trend,” said Cushman & Wakefield in its latest research.
According to Cushman & Wakefield research, in 2015, a majority of the new launches (83%) were now concentrated in the mid-segment. While new launch prices have remained stable across most sub-markets, far south saw developers reducing the average weighted basic sale price in mid segment by 7%, to remain competitive. south east micro market of Bangalore was an exception where both the average weighted basic sale price (19%) and the average ticket size (18%) of apartment saw an increase.
While the new unit launches have not seen a reduction in the unit sizes or ticket sizes, the focus segment has changed over the last two years. Shveta Jain, managing director, residential services, India Cushman & Wakefield said, “A correction of the launch prices will ensure attractiveness and relevance of these locations to the end users. The economic confidence slowly creeping back into end user sentiments aided by a corrected Base Price as well as lowered ticket size is likely to provide the needed boost to improve sales.”
New launches in 2015 were concentrated mainly in few submarkets including Far South and South-East submarkets. Approximately 47% of the new unit launches in 2015 were witnessed in far south, south east and west submarkets in Bengaluru. “A closer examination of the ticket prices and base selling prices in these sub-markets reveals that Bengaluru continues to be a stable market in terms of ticket prices, with developers not always resorting to lowering of selling prices or reducing apartment configurations to make them more affordable,” the research mentioned.
According to the report, residential market for metropolitan cities of NCR, Mumbai and Bangalore recorded a drop in launch prices in high development activity markets of these cities. The analysis records that new residential projects in select micro markets are cheaper by 4% – 20% on average weighted basic sale price over the last 2 years. The report tracks the development activities in locations of Dwarka Expressway, New Gurgaon Southern Peripheral Road Sohna, Noida Expressway and Noida Extension in NCR; Thane, Goregaon and Malad in Greater Mumbai and South-West and Southern sub-markets in Bangalore.