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Sales of affordable and mid-segment residential units have picked up, but there is a slow down in sales of apartments above ₹1 crore in Bengaluru.
“In the first-half of this calendar year (2019), Bengaluru witnessed absorption of 17,500 units and nearly two-thirds of this was sub ₹1 crore,” Kishore Jain, President, Credai Bengaluru told BusinessLine . “Affordable and mid-segment residential off-take were in the price bracket of ₹35 lakh to ₹85 lakh. But when compared with other major cities in the country, ₹ 1-crore-plus residential unit sales in Bengaluru was much better,” he added.
The city’s inventory of unsold residential units is around 1.03 lakh and is expected to get sold in three years as they are in various stages of construction. To give push for sales Credai Bengaluru Realty Expo 2019 is being held on October 19 and 20. Bengaluru is witnessing annual sales of around 35,000-40,000 units mainly driven by large manpower pool moving in.
Talking about low sales and average unit price coming down, Samantak Das, Chief Economist and Head of Research & REIS, JLL India said “As we move forward we will see that the trend of delay varies not only geographically but also across different types of residential projects. Having said that, the question remains: Is the delay endemic across all categories of residential projects? JLL data says ‘No’.”
Das said “The reality is not all that grim as the funds are mainly stuck in projects belonging to the upper-mid and premium categories. This is reflected in the average price of residential units across cities.”
Das further explained “For instance, the average price of delayed residential units stands at ₹1.99 crore for Mumbai as compared to ₹95 lakh in Bengaluru, ₹94 lakh in Hyderabad and ₹87 lakh in Chennai.”
Realistic offers
Girish Shah, Executive Director – Residential Sales, Knight Frank India said after learning the lessons, right flat sizes are being offered now. One of the biggest reasons for slow housing sales across India was the mismatch between the demand and supply in terms of size of homes. But, with the government focus on affordable housing to achieve the ‘Housing for All by 2022’ initiative, many builders have started launching optimal-sized homes, at good price points, which might help in attracting the buyers.”
Builders have come up with realistic festival offers. “Like every year, real estate developers have started queuing up with deals and offers. However, unlike over-the-top and unrealistic offers in the past, builders are coming up with much realistic offers this year, mainly because of the liquidity crunch.”
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