Bangalore's Property Market Continues to Fly

Currently, there is a drop of demand across 8 top cities, according to IIMB MB HIS and as an expected demand across the 8 top cities, MIG is anticipated to generate the highest volume of demand nearly 1.08 mn units which is followed by LIG of 1.05 mn units and 0.52 mn units of HIG until 2018.  Both LIG and MIG account nearly 80 percent of total demand in these eight cities.

The residential units supply prediction which is expected to be delivered across the top eight units at the end of 2018, which includes under construction units, existing units and planned units, is probable to be 1.3l million. The greater part of under construction units has already been sold. Being one of the top eight metro cities Delhi-NCR is expected to have the highest supply of 516,000 residential units delivered by the end year 2018, followed by Mumbai with about 203,000 and Bangalore city with 243,000 units. Until 2018, the supply prediction of LLG will be nearly 21 percent of the total supply across eight cities, at the same time demand signifies 58 percent share of the cumulative demand supply gap.

The MIG expected supply will be around 59 percent of the total demand, where as demand constitutes 23 percent share in the cumulative demand supply gap. In top eight cities, Ahmadabad, Mumbai and Bangalore are expected to hit new highs with the deficit of MIG housing units. The Indian realty end user is at still in the watch and wait mode.

"The private sector housing, which is to a great extent in charge of creating housing in India has been struggling with numerous issues which have resulted in holding back the growth of realty sector since last 2-3 years, the issues are increase in costs, expensive land valuation, antiquated building standards, delays in regulatory process, confined access to funding and indeterminate economic conditions ensuing poor/slow sale volumes” says Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield. Accordingly, the imbalances of demand and supply across cities have been more pronounced.

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