The primary residential market in Bengaluru remained active even amid a slowdown in the city’s overall real estate market, with property prices in the IT capital of the country appreciating 9-17 per cent across segments due to new launches at higher prices.
The first half of 2015 has seen appreciation in all development types, property consultancy firm LJ Hooker India said in a recent report.
“Increasing input cost and new launches priced higher than the existing inventories resulted in a push in the average capital value to the higher side,” said Amit Porwal, executive director at LJ Hooker India.
A majority of the new launches in the city were in the mid-range and premium segments, priced at an average of Rs 5,961 per sq ft, with an average size of 2,026 sq ft. “The rise in confidence in residential real estate sector can be attributed to the increased enquires from both end users and investors and good commercial office absorption from IT/ITeS sector,” said Arvind Kapoor, director residential services at Colliers India.
In the premium category, projects launched during the AprilJune quarter include Leela Resi dency by Bhartiya City at Thanisandra Road, Sobha Clovelley by Sobha at JP Nagar and Mahindra Windchimes by Mahindra Lifespaces at Bannergatta Road. These projects were priced in the range of Rs 11,500 to Rs 7,000 per sq ft. “We have sold over 70 per cent of our first project in Bengaluru. There are senior-level professionals who are looking to upgrade to bigger homes,” said Anita Ar jundas, managing director and chief executive officer (CEO) a Mahindra Lifespaces.
The Mumbai-headquartered company launched apartments priced between Rs 1.3 crore and Rs 2.2 crore, ranging in size from 1,800 sq ft to 3,000 sq ft.
“Last month has been good. We hope this momentum will con tinue with the onset of the festive season. Reduction in home loan interest rates should further boost it,” said JC Sharma, vice chairman and managing director at Sobha.
The residential market’s unsold inventory remained high a 101,992 units in the first half of 2015 valued at Rs 87,501 crore.
Until a year ago, the residential real estate market in south India including Bengaluru, stayed resilient due to a strong macro-economic environment, backed by improvement in the information technology sector and a healthy absorption rate across cities.