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Bengaluru has narrowed the gap with Mumbai in terms of real estate project launches, absorption and quarters-to-sell diametric.
“Bengaluru is clocking launches of 45,000 units and absorption in equal proportion on an average annually,” said Ashutosh Limaye, National Research Director, Jones Lang Lasalle (JLL).
‘Healthy absorption’ “With healthy absorption, pricing in Bengaluru market has also become reasonable. I will not say that it will see a huge kind of appreciation, but would be moderate. Price appreciations in residential properties were observed to be stable by about 5-10 per cent year-on-year,” he added. Going forward, prices may be impacted by hike in raw material prices, he added.
“On an average Bengaluru has delivered (property) between 5 – 10 per cent per year. It will remain in that range for few more years,” he said.
To clear the doubts on unsold inventory in Bengaluru’s residential market, Credai and JLL-India jointly released ‘Analysis of unsold residential inventory in Bangalore’.
Taking stock Limaye said that according to the study, Bengaluru market witnessed launch of 206,753 units in the last four–five years. Of this ‘to be sold’ inventory stood at 82,357 units and ‘unsold’ units stood at 4,492 units (apartments and villas).
Of the 2,06,753 units launched in Bengaluru, apartments comprise 1,94,993 units and among this 77,085 units are ‘to be sold’ inventory, while the balance (3957 units) come under the ‘unsold’ inventory.
Villas comprise of 11,760 units of which 5,272 units are under ‘to be sold’ category and ‘unsold inventory’ stood at 535 units.
“For the study a total of 957 projects of which 138 non-Credai members were analysed to categorise the market inventory for easy understanding,” Limaye said.
Credai Chairman and CMD of Prestige group Irfan Razak said, “For this exercise, Credai for the first time partnered with the international property consultant JLL to come up with an independent study.”
JC Sharma, President of Credai-Bengaluru, said, “It is important that we take a scientific approach to the development of the city. A scientific tool such as this will help developers understand ground realities and plan their projects.”
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