Bangalore: Hit by the increasing prices and liquidity crunch, people in Bangalore are going for properties in low ranges with 41 percent opting for residences in the sub-Rs.40 lakh category. So, being analyzed to be a 'Year of Affordable Housing', the city's real estate market in 2008 see a oversupply of estates worth above one crore rupees and rupees two crore.

As per a report given by the real estate portal makaan.com, the real estate sector has witnessed a slowdown by around 6 to 11 percent. Moreover, around 63 percent of Bangalore's property seekers did not bother about the location. But there is a surge in the demand from buyers and tenants for residences in the Southern part of Bangalore.

The year also sees a decline in the demand for rented properties where the report shows a decline between one percent and 10 percent. With the rising property prices the owners find it difficult to rent out at sub- Rs.25, 000.Around 32 percent of those reviewed are looking out for rents in the range below Rs.10, 000, while 38 percent opts for a rental range between Rs.10, 000 to Rs.25, 000. But coming to the supply there is only 19 percent of properties available for rent below Rs.10, 000 and only 35 percent is available with a rental range between Rs.10, 000 and Rs.25, 000. Hence, again even for rented properties the demand curve is sliding up while the supply is limited.

The report suggests developers to marry their project specifications with the actual demand to get a balanced demand and supply.