Developers in Koramangala ride on festive splurge
Come festive season, real estate in Koramangala (south Bangalore) will be a buzz. The sales charts, in the first leg of of the festive spirit is likely to hit high and the business is expected to grow by 40-60% higher in comparison to last year, say developers in the locality.
Builders in the area did not witness much downturn in their sales graph this year and the festive season is likely to continue the profit run for them. From premium to affordable, real estate in Koramangala lives up to the expectation of the developers and builders of every segment during the festive season. The period that sets-off from Diwali and continues till New Year, is seen as the perfect time for an investor to buy a property.
Why festive season clicks?
According to market records, developers have witnessed property sales flying off the shelves during the festive season, which begins from Diwali. Since, the period is considered an auspicious time to purchase properties, there is a slight uptick in the number of deals and transactions during the period.
Estimated sales increase in the locality is calculated at 15-20% during the season, mostly due to attractive offers and discounts. The average price per sqft in the area is Rs 6500 and the average inventory available is 1200 sq ft. Furthermore, small developers have thrown in their hats in the ring to cash in on the demand for housing units in the area.
Because of a strong demand and limited supply of units in Koramangala, developers do not foresee any major reduction in the resale or luxury market. The locality also cashes in on its proximity to Electronic City. Affordable housing segment, is a major hit in the area, and is being mainly driven by the young professionals migrating from different cities. Experts suggest that this would push-up rentals in this category by 3-6%.
Bangalore overall
Although global economic ambiguities slacked growth in the service sector, reasonable sales volume and new launches did not fail to register good figures in the accounts book of the developers. The real estate market of Bangalore, as a whole caters to young professionals mainly, and key developers (like Godrej properties, Tata housing, Ashoka Group etc.) try to rope in the target group with affordable housing units.
According to officials of Cushman and Wakefield, for any micro-market in the city demand for affordable units is driven by the IT/ITes sector and Koramangala is no exception, due its proximity to Electronic City. The inventory is generally high and builders concentrate in this category to cater to the growing demand.
