8 buzzing trends of 2014 in Bangalore Realty Market
Bangalore tops the chart for investment amongst Tier 1 Cities: Commonfloor research indicates that amongst the 8 metro cities in India including Bangalore, Hyderabad, Mumbai, Delhi, Pune, Ahmedabad, Kolkata and Chennai, consumers preferred Bangalore as the most favorable destination for property investment in 2014.
High Demand for Ready-to-move-in properties: Commonfloor research highlights that there is high demand either for ready-to-move-in apartments or those that are nearing completion within 6 months. While 40% prefer immediate occupancy, 28% percent prefer projects nearing completion (within 6 months). This preference largely accounts for necessity rather than desire. The end users with immediate requirement are spending considerable amount as rent.
Focus shifting back to conventional markets: For quite some time now North Bangalore has been the focal point of all real estate activity in the city. Manyata Tech Park and the new Bangalore International Airport drifted the real estate prices up in this region. But lately, there has been a shift in this trend. Commonfloor research points out that focus has once again shifted back to conventional markets such as Whitefield, Sarjapur Road and Electronic City. These localities comprised about 60 % of the new launches in Q4 2013.
West Bangalore sees rise in demand for high-end Apartments: West Bangalore, one of the posh areas in the city, is known for having large independent bungalows owned by the elite. But lately, this trend is changing. In the last 2 quarters of 2013, the region has witnessed the launch of several high-end apartments.
Small is the new buzzword in ‘Silicon Valley’: Lately, it is also noticed that the demand for average size of units in Bangalore is shrinking. Ample land availability and high-paying capacity led Bangalore to have the largest average apartment size in the country. Commonfloor data suggests that in 2012 an average apartment size was 1643 sq. ft., which was around 43% higher than the national average. However, in 2013 there was a marginal reduction of around 10% in apartment sizes in the city.
Average Project size is shrinking: The same research also highlighted that the average size of the projects was also getting smaller due to high risks involved. At least 26% projects launched in last two quarters of 2013 have less than 50 units and 56 % projects have less than 100 units. This clearly highlights the calculative approach of builders towards new launches.
Increase in new supply in Q4 2013: Analysis indicates that there has been a significant decrease in new launches across all regions such as Chennai, Pune, Hyderabad, MMR and NCR. Surprisingly, despite slow economic growth and significantly low real estate sentiments throughout 2013, Bangalore saw an increase in new launches by 8% in Q4 2013.
Increase in weighted average price: The weighted average price in Bangalore increased marginally by 6 % in Q4 2013 as compared to the corresponding quarter in 2012. But, this increase was higher than most cities including Delhi-NCR and MMR.
Source: Commonfloor Domain Research & Q4 2013 Real Estate Supply Absorption Report.
