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 per cent in Q3 2018 over the same period last year, the highest amongst all cities. Overall unsold stock declined by 32 per cent and stood at 76,550 units in Q3 2018 in contrast to 112,995 units in Q3 2015.”
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 158,820 new residential units between 2015 to Q3 2018. While 2015 accounted for 48 per cent of the total new launches, 2017 delivered nearly 11 per cent 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 two years, increasing from 16 per cent in 2016 to 25 per cent in 2018.
Read the full report here: