Property sales take a dip: No impact on high prices

Towering price structure often stands out as the primary reason that discourages the buying behavior of people in key cities, however, Bangalore’s present market scenario heralds the right time for property investment. According to real estate consultants, for Bangalore, drop in prices in the near future is not in the cards and hence, it sticks out as the perfect time to purchase property in the city.

Going by the market reports, property sale in the city have hit the skids by 14%. Industry data lap up that more than 50000 housing units in the city out of 86761 units, launched in Bangalore in 2010, are unsold. Of late, the residential projects in the city are taking more time than ever, to sell out.

Prices remain firm

Drop in sales volume may be tagged as a good sign for the buyers to take the plunge, however, with prices remaining high investors cannot make the most of the present conditions. Market survey reports concur with the fact that prices will remain steady and are likely to witness a hike in the days to come.

An insight on the prevailing real estate condition of Bangalore suggest that the present price sq ft ranges between Rs 5000- Rs 6000 sq ft in the city. Hence, a 1200 sq ft property will somewhat cost around Rs 60 lakh. Together with registration cost and other expenses, the prices will clamber up to Rs 70 lakhs, which is a decent price in the Garden City where the inventory is quite high.

Experts say

According to property experts, the phase when sales is at its best during the time of project announcement, has undergone a significant makeover with time. Buyers have come of the age and no longer jump to make quick bookings, as soon a new project comes to the limelight. However, with prices remaining reasonable, expecting a slump in the sale will be a wrong toss of the dice, in a city like Bangalore.

Market statistics estimate testify the fact that the number of vacant units in the city has been on a rise since the last few years. 2008 recorded the number of unsold units at 14636 that stood at 31639 in 2011 and grew to 50184 in the first two quarters of 2013. The residential real estate market in the city was mainly driven by the growing number of nuclear families and migration of people from different cities, however, a disparity between demand and supply has called for piling up of inventory and less number of sales transactions.

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