Bangalore's Property Market Continues to Fly

Bangalore’s property market is likely to remain active and continues to soar in the future with 243,000 units which are expected to be supplied in the following five years (until 2018). One of the prime reasons why Bangalore residential market remains high on the list is being prominent IT hub of South India, the city is attracting workforce and migrant population from all other cites over India and abroad by providing job opportunities and massive housing needs. The launch of new projects in Bangalore has mushroomed abruptly to cater their needs.

The Housing Sentiment Index (IIMB MB HIS) and Magic bricks for the 2^nd quarter of 2014-2015 conducted a survey that captured sentiments and expectations of the property seekers and revealed that the HIS for Bangalore city, for the first time in a year, registered a 13 percent to 124 drop from the sentiment where Ahmadabad hit the new highs. Even though, in case of Bangalore the respondents are still positive.

A Study conducted by global real estate consultancy Cushman & Wakefield (C&W) found out that; the supply prediction point toward is almost 56% of new units that may provide to the (Middle Income Group) MIG, 29% to the (Lowest Income Group) LIG and enduring 15% to the HIG (Highest Income Group). The collective demand for residential housing (until 2018) is estimated to be 438,600 units with 44% in the MIG and 31% in the LIG. Considering the high requirements, demand is expected to continue unmet in all segments with an aggregate demand-supply gap of about 196,000 units with a high scarcity (38% of total deficit) in the HIG.

Due to the large-scale mid level IT professionals in the city, Bangalore has remained focused on the MIG. Numbers of city houses are as multinational companies and being headquartered of many IT/ITEs companies and there is a need of HIG housing. Hence; there is an expected significant flourish of higher level housing and exclusive residential housing options mainly focused by the CEOs will also be in high demand in the future.

The predictable demand of urban housing in India by the end of 2018 is to be nearly 13 million units on account of the mushrooming population in urban centers. This survey includes the cities like Bangalore, Ahmadabad, Chennai, Pune, Noida, Delhi, Gurgaon, Hyderabad, Kolkata and Mumbai. This is an additional demand for existing unmet demand. As of active interest in the real-estate market, there is an additional demand; the 8 top metro cities are likely to constitute 23 percent or 2.95 mn units, according to global real estate consultancy Cushman & Wakefield (C&W) research report.

newly launched real estate project in bangalore