IT city Bengaluru has emerged as the front-runners in the Indian Housing sector with an increase in residential demand and supply than its counterparts Hyderabad and Chennai in the first quarter of 2018. In the latest research report, it is revealed that Bengaluru witnessed increased demand for housing properties from IT-ITeS sector and start-ups.
According to the report, Housing sales stood at 11,500 units in Bengaluru during January-March 2018 in comparison to 3,800 units in Hyderabad and 2,300 units in Chennai. On the other hand, in supply, Bengaluru saw launches of 6,800 units as against 2,600 units in Hyderabad and 2,100 in Chennai which accounts for nearly 127 percent of rise.
The report further said that increased commercial activity, positive buyer sentiments, infrastructure upgrades and improved job opportunities in the city have given a major boost to Bengaluru’s housing market. Till a few years, back buyers are not very frequent in investing in a property. But with many reforms in the real estate sector, property buyers have now actively returned back to the market which in turn improved the residential market of the IT city.
At Pan-India level too, Bengaluru is just behind Mumbai Metropolitan Region (MMR) in terms of supply and absorption of residential units for Q1 2018. Bengaluru is also home to several mid-levels IT professionals who have added to the demand for mid-segment (Rs 40 lakh-Rs 80 lakh) housing. They have multiple options to look for which include Whitefield, Outer Ring Road, Sarjapur Road, and Electronic City, and also a few locations in North Bengaluru. Apart from this, affordable housing options (less than 40 lakh) are also fast catching up in the suburbs of Hosur Road, Mysore Road, etc.
Focus on mid-segment category
Bengaluru has seen total 6,800 units launched in the first quarter of 2018, out of which 84% (5,700 units) fall in the mid-segment category. The majority of launches took place in South Bengaluru and North Bengaluru (which accounted for 34% and 31% of the mid-segment supply respectively).
Because of a good demand of housing in the mid-segment category, developers are giving a major focus on them. All this has led to major growth of residential demand in the first quarter of 2018. While it was 1400 units in the fourth quarter of 2017, the sales jump to 5,700 units in the first quarter of 2018. So it can be said that the mid-segment housing category saw an increase of more than 300 percent in this quarter.
Also, property prices have seen a marginal increase of 1 percent from Q4 2017 to Q1 2018, with the current average property prices in Bengaluru being ₹4,850/sq.ft. And this has too played an important role in keeping the housing market of Bengaluru at a high.