Bangaloreans prefer apartments to villas: Survey report
The real estate trends during the by gone year shows that Bangalore is a mature market with relatively stable prices and increasing demand. The city’s residential market is quite resilient to unfavourable economic conditions and with a right mix of both high-end and mid-end launches. The purchasers in Bangalore unlike other metros are basically professional classes who are end-users. This accounts for a more realistic pricing here compared to other metros.
As IT back on its rail and expectations for slashing home loan interest rates post RBI rate cut, there is a high hope for the real estate market in Bangalore in the future. As per the reports, the residential sales are expected to rise to 15 million sq ft in 2013 from 12 million sq ft in 2012.
As trends go like this, there exist several questions in connection with the preference of buyers. Why do they prefer to buy property in Bangalore? Which are the most preferred locations? What are the most moving segments? Are ready to occupy properties in more demand? And lot more.
Recently, Commonfloor.com conducted a property survey to get answers for all these questions.
Preferred property type:
While 57% preferred apartments, only 13% are interested in independent villas. 26% would go for plots keeping in mind the high returns it offers in a long run.
Apartments are less expensive compared to villas and independent houses. Also the thriving working class finds apartments more convenient. It is true that flats always give a feeling of confinement compared to the freedom in villas, but be it lack of spaces or high property rates, flats are preferred by compulsion.
Preferred budget:
The large influx of professional working classes in Bangalore prefers properties ranging from 25 to 50 lakhs. While 41% of the respondents chose between 25 and 50 lakhs, 29% would not mind going in for a slightly higher bracket, say 50-75 lakhs. The choice for 75 lakhs and above stands at 9% while 1 crore and above was 10%. There are a minority of 11% who look out for economical options between 10 and 25 lakhs.
If the property prices come down and interest rates are slashed, it will definitely have a huge impact on the demand for mid-scale to luxury segment. The developers in Bangalore are equally active in the upper mid scale and premium vertical. They expect a good footing as customers’ prefer for good quality and large spaces.
2 BHK is more preferred:
Affordability and shrinking sizes of families ignites the demand of 2 BHK apartments. About 46% of the respondents prefer 2BHK apartments, while 30% prefer 3 BHK. As the IT culture is blooming many are likely to stay alone or busy to manage daily maintenance. This can be another reason for this trend. But still the preference for 1 BHK is only a marginal 4 %. The reason for this is the difficulty in liquidating as well as the trend to have enough comforts.
End users drive the property demand:
Buying trends show that a majority (69%) buy for self occupancy. Only 20% buy for investment purpose. As there is a considerable growth in the working professionals in Bangalore, majority buy properties here to save on the rising rental costs. Investment opportunities in Bangalore attract on 20%. As property prices more in metros, investors are more attracted to suburbs or in their home towns with a long term perspective. Still 11% people tend to buy for other purposes.
Preferred region:
South Bangalore is the preferred location of 35% of respondents while North and East stand close with 29% and 23%. Other locations are yet to pick up.
The Southern and Northern zones are fast developing a taste for commercialism and several new spaces are mushrooming here. Both retain a balanced effect and are well connected to other parts via road ways and metro lines. With the presence of many MNCs, research institutes and colleges, leading developers are acquiring large land parcels here.
Ready to move apartments on more demand:
Ready to move apartments and those which completion expected within 6 months are in more demand. While 40% prefers 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.
In ready to occupy apartments, there are no surprises. But it is a fact that ready to move homes are relatively expensive as in many cases, property price can be 25-50% more than initial stages. Maintenance also can be a concern in resale. Under construction apartments also gives flexibility in terms of margin payments and an option of customization. But, due to the slowdown in demand and rising costs, many projects in metros recently showed a tendency to delay the progress. This also accounts for the demand in ready to move in properties.
