Bangalore, Chennai: Stable Realty Markets in South India
Bangalore: In South India, metros like Bangalore and Chennai have emerged as stable real estate markets, but the development in Bangalore is more than in Chennai, according to Jones Lang Lasalle India, a global real estate firm, reports Mahesh Kulkarni of Business Standard.
Badal Yagnik, Managing Director, Chennai & Coimbatore, Jones Lang Lasalle India stated that “Residential property sales in Chennai and Bangalore have been more or less stable of late, with the Chennai market displaying marginally greater buoyancy than Bangalore. The absorption of residential property units in Chennai this year has been almost equal to that seen in 2011. In Bangalore, this year’s absorption has been lower,” reports Business Standard.
In Chennai, the rental and capital values in centrally located areas are higher compared to Bangalore. This scenario is because of the less supply of residential properties in cities and outskirts are in need of social infrastructure to develop, added Yagnik in the report. Moreover, the city property prices in Chennai have become unaffordable due to less supply and lack of suitable plots.
Whereas, in Bangalore, the supply of residential units is balanced properly such as Bellary Road, Whitefield Road and Hosur Road witnessed around 68 percent residential supply this year. In contrast to Chennai, every micro-market in Bangalore race against each other. Developers are coming up with innovative ideas for their new residential projects which in turn making competition stronger.
Also, in Bangalore the concept of integrated community is widely accepted than in Chennai. This is mainly because there is availability of land parcels in Bangalore coupled with developed social infrastructure, which is lacking in Chennai. With the support of good infrastructure and land availability, Bangalore is witnessing healthy number of integrated township projects along with luxury amenities compared to Chennai, said the report.