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Bangalore, Oct. 4 For the real estate market in Bangalore, 2008 is shaping up as the ‘Year of Affordable Housing’. About 41 per cent of the demand for residential properties in the city is for those in the sub-Rs 40 lakh category, while it is 26 per cent for those in the Rs 40-75 lakh range, says a three-month survey by real estate portal makaan.com, which was released on Saturday.

According to the report, there is an oversupply of properties above Rs 1 crore, and the supply is more than twice the demand for properties costing above Rs 2 crore. The strategy over the next few years for developers must be to marry their project specifications with the actual demand to create sustainable businesses, it adds.

Though the real estate scene in Bangalore has seen 6-11 per cent slowdown in demand, depending on the sub-city, when taken as a percentage of total demand, there has been absolutely no variance in the demand within sub-cities.

This indicates that the property hotspots and the demand equation within different sub-cities has stabilised in the last few months, the report says. In what it calls a unique trend, about 63 per cent of Bangalore’s property seekers were not looking for any specific area and were willing to purchase a property anywhere in the city.

The report suggests that Bangalore South is the city’s hot spot with maximum demand from buyers and tenants.

The demand for rented properties in most of the sub-cities has seen a drop in demand during the review period, between 1 per cent and 10 per cent. About 38 per cent of tenants don’t mind spending between Rs 10,000 and Rs 25,000 per month as rent, while 32 per cent seek sub-Rs 10,000 rentals.

The supply of rental properties in Bangalore in the sub-Rs 10,000 category is only 19 per cent, while 35 per cent of them are in the Rs 10,000-25,000 rental range.

“This clearly indicates a mismatch in demand and supply,” the report says. Due to rising property prices, house owners are increasingly finding it difficult to rent out their properties in the sub-Rs 25,000 budget. Hence the supply of properties with rentals above Rs 25,000 is more than the demand, it adds.

More Stories on : Real Estate & Construction | Marketing Research | Karnataka

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