Bangalore Stable on Home Sales

Bangalore: It's been observed that major metropolitan cities are facing the hit of unsold residence whereas Bangalore comparatively holds a steady market in house sale.

According to SBI Cap Securities, people are buying six million square feet residence every month in Bangalore compared to the largest real estate market in India like Delhi and Mumbai. The home interest has come down considerably in Delhi by 10 million square feet from 20 million square feet and Mumbai is down by 6 million square feet, in one month.

Akshit Shah, real estate analyst, SBI Cap Securities pointed out the reason behind Bangalore’s steady market being the existence of large number of IT companies, the city has more IT companies and during the month of March and April, the companies hike employees’ salary adding bonus to it and that’s the exact time when more houses are sold, adding to it, are the festive seasons as well when the houses are sold. An integrated investment management company, Azure Capital that focuses on the Indian real estate stated that, the reason for the absorption is, that maximum buyers here in Bangalore are well paid. Bangalore based co-chief investment officer and realty fund manager avowed that “IT biggies such as Infosys, Wipro, TCS are hiring 10,000 to 15,000 staff, giving boost to new home purchases”, reported by Business Standard.

On the other hand, the rate of new inventories has decreased in Bangalore by 4 million from 7 million in a month now, even with the market being stable in sales whereas Mumbai’s inventory levels have reached to 99 million square feet as a result of low inclusion, Delhi has come down to 132 million square feet from 150 million square feet.