Is Real Estate in Bangalore Overpriced?

Bangalore: Bangalore is the fastest growing city in India from past few decades and it accredited as a privileged investment destination by Asia pacific. Due to the Infrastructure development and IT development the residential demand is increasing day by day. IT is the major growth driver for successful real estate development in Bangalore.

Is Bangalore real-estate overpriced? With an average property price touching a whooping cost of Rs 1.8-2 Cr, Bangalore is slowly becoming an unfortunate place for middle income people.

Compared to top metro cities in India, Bangalore real estate market witnessed a high demand supply gap. The commercial space demand is increasing rapidly.

Demand of new residential units in Bangalore real estate market has been on the decline since mid 2014 due to overprice. A recent survey of realty experts, arrived by comparing the cost of premium apartments is that Bangalore real estate is overpriced. In 2014 first quarter, residential property prices in Bangalore appreciated the fast pace of 11 percent compared to Hyderabad.

The housing sentiment Index, which has been conducted for the quarter of 2014-15, concluded that for the first time Bangalore real estate market registered a drop from the sentiment.

In Bangalore, there are more than 40,000 flats which remained unsold. Home buyers earning low income fail to afford properties. Even though, real estate developers are not ready to decrease the prices to clear the inventories. They were in positive thought and have adopted a wait and cash approach.  The lion’s share of unsold property flats in the city shows overpricing.

The demand for affordable housing is increasing rapidly in Bangalore. To provide housing for mid level segment professionals, Bangalore real estate developers have focused on developing affordable housing. As Bangalore headquartered many multinational companies, there will be a need of High income segment housing so the demand of HIG is expected to augment in the near future.

Bangalore city housing million people, due to the space crunch in prime localities, developers are increasing the price at their own wish.