In a recent report by consultant L J Hooker says that with 700 residential projects including apartments, row houses, plots, villas, accounting to 1.82 lakh units under progress, Bangalore City witnessed 60,000 unsold units approximately in which 80% of unsold units are apartments and plots 10%.
The J L Hooker report also revealed that with IT boom in the first 2 quarters of the year 2012, the city’s absorption rate raised with 3,774 units absorbed in a month. Later, post IT boom, the sales slowed down and it seems that it could take 16 months to clear the existing inventory. Prashanth Sambargi, partner, Mars Realty, says that the prices haven’t changed over the last two quarters, which signifies the fall in buyer sentiment and the in general economic environment.
Mr. Farook Mahmood, CMD of Silverline Group, a well-known city realtor, says since the residential prices have not reduced the sales have slowdown, yet Bangalore City remains as one of the India’s cheapest market, where the buyers get the thorough value for money.
An L J Hooker report shows an estimation of average price of a 2-BHK or 3-BHK apartment raised slightly by 3%, which was around Rs. 4,556 per sq. ft. by June end in 2012, whereas in December the average price per sq ft was Rs 4,432.
Nagaraj Reddy, President of CREDAI a real estate industry body says that the city has about 600 ready-to-move-in residential units that are priced between Rs. 7,500 per sq. ft. and Rs. 10,000 per sq. ft. and includes penthouses and large 3,000 sq. ft. -plus units that are unsold.
With the depreciating rupee against dollars, Bangalore observed a reasonable buying from the NRIs though it did not happened as it was expected by many realtors that NRIs would congregate to buy properties.