Bengaluru Leads Property Price Gains among Major Cities

Bangalore : This year the residential property market has largely been stifled across major cities of India due to the inventory of unsold properties – a report from Cushman and Wakefield, property consultant. However, it is optimistic that an enhancement in the Indian economy will uplift the fortunes of realty sector.

The research organization is confident that the new government shoves on the housing sector, relaxation of foreign direct investment in the construction sector; intended development of 100 smart cities development will gain the realty sector. Nonetheless, this year the property price trend has been assorted across eight major cities followed by Cushman & Wakefield. Here are the property price trends in 2014 as indicated by real estate consultancy.

=> According to research agency, In the July-September quarter 0f 2014; Bangalore saw a price appreciation of 5-13 percent and Mumbai 3-8 percent as compared to the same period last year. “While Bangalore is largely driven by end-users where as Mumbai has a mix of end users and investors, from the last year capital values have improved.” The research agency said.

=> Property values appreciated 4-10 percent in Chennai, 1-5 percent in Kolkata and 2-15 percent in Pune compared to last year. However, primarily due to significant unsold inventory Delhi witnessed a drop of 2-11 percent in its property values.

=>By considering that the mid segment category has been largely undeserved, developers focused on offering mid level segment housing, since for the past few years. In the mid level segment category, around 68 percent of housing units has been launched in the first three quarters of 2014, registering a significant increase from 56 percent during the same period of 2013. Last year, due to sustained growth, mid segments localities in Bangalore, Pune and Kolkata witnessed a price appreciation of 24 percent

=>In select areas of Delhi-NCR, Ahmadabad, Mumbai and Hyderabad, due to low sales and high inventory levels the property prices in high end segments capital values recorded a drop of 14 percent.

=>Bangalore, Delhi-NCR and Mumbai continue to be the hot spots and accounted for around 60 percent of unit launches in 2014. This year, in the top eight cities such as Ahmadabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune nearly 122,000 units were launched.

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