New Property Launches Plunge by 62pct in Bengaluru but Market Trend Stable

New Property Launches Plunge by 62pct in Bengaluru but Market Trend Stable

By siliconindia   |   Wednesday, January 6, 2016

BENGALURU: A latest research by Cushman & Wakefield derives a 62percent rise in new property launches in Bengaluru. The number of properties that splurged since 2014 counts to 15,600 approximately, reports Economic Times.

The Cushman & Wakefield research said, "The city has witnessed slower sales of existing inventory, resulting in reduced new unit launches. However, in comparison to the other cities, Bengaluru has shown an exceptionally stable market trend."

The research found a rise in new launches upto 83percent in the mid-segment. In order to remain competitive and sustain in the market, developers of South Bangalore reduced average weighted basic sale price in mid segment upto 7percent ,keeping the launch price constant.

In south east Bangalore, both average weighted basic sale price (19percent) and average ticket size (18percent) saw a hike.

Shveta Jain, Managing Director, residential services of Cushman & Wakefield, India said "A correction of the launch prices will ensure attractiveness and relevance of these locations to the end users. The economic confidence slowly creeping back into end user sentiments aided by a corrected Base Price as well as lowered ticket size is likely to provide the needed boost to improve sales."

The 2015 new launches concentrated in far south and South-east Bangalore submarkets. These areas witnessed almost a 47percent rise in new unit launches.

The research mentions "A closer examination of the ticket prices and base selling prices in these submarkets reveals that Bengaluru continues to be a stable market in terms of ticket prices, with developers not always resorting to lowering of selling prices or reducing apartment configurations to make them more affordable."

The research also focuses on residential market in metropolitan cities like Delhi, Mumbai and Bangalore experienced a drop in launch prices especially in high active market areas. The research reveals that new residential projects in micro markets are cheaper upto 4percent-20percent on average weighted basic sale price for past two years.

The research took into consideration areas like Dwarka Expressway, New Gurgaon Southern Peripheral Road Sohna, Noida Expressway and Noida Extension in Delhi; Thane, Goregaon and Malad in Mumbai and Sothern Bangalore.

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