Q: I stay in Mumbai but I am thinking of investing in Bangalore real estate market. How is the Bangalore housing market in past two years? Your valuable comments is going to help me take my decision.
I feel the real estate market is losing its title as the most-preferred asset among Indians. The main reason is the delay in possession. earlier home buyers use to invest at the pre launch stage now that number has also decrease. Another major issue is affordability.
It seems there has been 50% rise in the unsold housing inventory between June 2012 and December 2014. According to a real estate firm, in top six cities which includes Bangalore, Chennai, Hyderabad, Mumbai Metropolitan Region (MMR), Delhi-National Capital Region (Delhi-NCR) and Pune have nearly seven lakh unsold units
According to the report, NCR emerged as the worst performer with around 50% of the projects still under construction and it is taking more than the double time then committed time.
Builders and developers in NCR have over stressed themselves by launching large-sized prdjects and huge townships, which were difficult to execute and required more funding
Recently I have read a report by research firm Propequity, where it is told that South Indian cities have a better track record in home sales, unsold inventory and project delivery with Bangalore being the most reliable housing destination. Bangalore tops the list followed by Pune and Chennai on second and third, Hyderabad on Fourth.
Bangalore emerged as the biggest property market with Rs 36,000 crore of primary yearly sales in 2014. 2014 has seen 4% increase from the earlier year.The south was the only resilient market, falling by just 2%.