In Bengaluru, the property prices are likely to rise by 10-15% soon after the State Government will put a ban on the construction of new apartments, the sources said.
The industry experts said that the demand for ready to move in properties will increase due to the limited number of new housing projects in the city. Also, the developers will keep the property prices fluctuating during ban. The imposition of ban will hamper new projects and according to the KRERA portal, nearly 328 new projects awaits sanction from respective authorities.
Although, the State Government has not said anything clearly on imposing a ban as it would also be implemented on the ongoing projects or not. According to the industry data, 106 new apartment projects are unveiled till now in the present year and this will add 18,600 new housing units to the inventory.
In the last two years, the Bangalore city witnessed a jump of 6 percent in average property prices and the average prices in the city presently stands at Rs. 4,950 per sq. feet.
The concerned authorities have raised queries on nearly 132 Projects out of the total 328 new projects and this means that the developers are required to give complete and accurate documents related to the projects.
The Bengaluru city is ranked second for the highest sales record in the top seven cities in past two years. In the Q1 of 2019, the city recorded sale of 15,580 housing units in comparison to the sale of 8,660 housing units two years back.