Bangalore's Realty Market Continues to be Stable

Bangalore:  Property price of Bangalore remains constant whereas real estate market in other metros like Mumbai and Delhi are still waning. It’s been observed that Bangalore’s real estate prices did not fall even with the economic crises that happened in 2009.

Industry experts pointed out the reason behind the steady market of Bangalore as, it is a IT hub and so the investor can make high investment on property which is converting Bangalore into robust market sales.  Sandipan Pal of Motilal Oswal Financial Services stated that “Bangalore-based developers outperformed their peers, with a strong uptick in launch and sales numbers. We expect this out-performance to continue,” reports DNA.

KS Girish, local director of Jones Lang LaSalle India stated that “Buyers tend to defer their decision to purchase until such a time that the interest rate moderates. But as most consumers in Bangalore invest in property for their own use, sales volumes decline, however, inventory remains stable,” reports DNA.

As per the SBI Cap Securities report, in Bangalore people are buying 6 million square feet house every month compared to the biggest real estate market in India like Delhi where it is 10 million square feet and Mumbai 6 million square feet in one month. The market outlook is not stable in Mumbai and Delhi and so the number of new launches has come down drastically. The reason of the downfall is because of critical economic crisis and so the rate of house absorption has dropped resulting in 132 million square feet of unsold inventory in Delhi and 99 million square feet in Mumbai, respectively.

According to Motilal Oswal Financial Services report, the Bangalore’s real estate market would be stable for the next 9 to 12 months due to available resourses, intrinsic nature of pricing system and minimizing the cost escalations, the housing price of Bangalore city is expected to remain constant.