Unsold stock declined by 32%, new supply in the price range of Rs. 40 – 80 lakh
Bengaluru’s real estate market has out-performed all other cities in terms of shedding unsold housing inventory, says the latest report by ANAROCK Property Consultants. The report, released at ACETCH 2018 in Bengaluru last Friday, confirms that Bengaluru saw a remarkable decline of 25% in the total unsold stock across the top cities.
The report studies Bengaluru’s residential real estate trends since 2013, factoring in the city’s evolution in terms of infrastructure development, transport and connectivity. Given the ever-escalating challenges the city faces on these fronts, a marked preference for walk-to-work options by homebuyers has become evident. That said, Bengaluru’s overall market profile retains most of its sheen thanks to its highly favourable confluence of market drivers.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “Burgeoning commercial activity, a cutting-edge start-up culture and realistic property prices dictated by end-user demand have kept Bengaluru’s real estate market vibrant, and generally more resilient than in other cities. The strong IT/ITeS economic dynamo continues to power most of the city’s residential demand and supply, and housing sales have remained healthy despite all macroeconomic headwinds. In fact, Bengaluru’s housing sales increased by 26% in Q3 2018 over the same period last year, the highest amongst all cities. Overall unsold stock declined by 32% and stood at 76,550 units in Q3 2018 in contrast to 1,12,995 units in Q3 2015.”
Supply, Absorption & Unsold Inventory (2015-2018)
Source: ANAROCK Research
The report does not gloss over Bengaluru’s mounting infrastructure woes, primarily in terms of citizens’ ability to commute to their workplaces and back. Resultantly, the ‘walk-to-work’ concept has managed to get a stronger foothold in the city, thanks to the continued availability of fairly large contiguous land parcels even within its municipal limits. Mixed-use townships that incorporate commercial, residential, retail, entertainment and healthcare elements wield considerable clout among homebuyers in a city besieged by increasing traffic issues.
More than 20 large-size projects comprising residential, office spaces, malls, etc. are either operational or under various stages of construction in the city. East and South Bengaluru have the bulk of projects that promote the walk-to-work concept.
Bengaluru added 1,58,820 new residential units between 2015 to Q3 2018. While 2015 accounted for 48% of the total new launches, 2017 delivered nearly 11% of the total launches. However, 2018 added 23,270 new units in the first three quarters.
Mid-segment (Rs. 40 – 80 lakh budget range) housing continues to dominate Bengaluru’s supply spectrum
The share of affordable housing has risen dramatically in the last 2years, increasing from 16% in 2016 to 25% in 2018.