Optimistic Market Drives Demand for Homes

Bangalore:  In Bangalore, the property developers witnessing a boost due to the increasing demand for apartments. In the second quarter of 2012, the rates of vacancy have reduced due to the progress in project sales which are close to completion. However, the demand for home loans have not decreased as various housing companies and banks are receiving good number of enquiries. Further chances of reduction in home loan lending rate have given a boost to the overall market outlook, reports V Nagarajan of Times Property.

During the second quarter of this financial year, Bangalore has seen the absorption rate of 4290 residential units compared to 4182 residential units in the first quarter, which has pushed the absorption rate upbeat from 11 to 12 percent, according to a periodical market update by Jones Lang LaSalle. In the second quarter, the city has witnessed a drop in unsold inventories. However, the demand has increased due to healthy sales in residential projects nearing completion, buyers move towards property buying than from paying high rentals and investors’ entrance from other Tier I and Tier II cities.