Affordable housing is the buzz word in Bengaluru

BENGALURU: 2015 saw the lowest number of new launches and sales volume since 2010 for the residential market, as per the latest Knight Frank India Real Estate report. Current unsold inventory levels stand at over 6.9 lakh units which will take approximately 2.5 years to absorb. The developers all over India are therefore showing cautiousness by restricting any new project launches. The story is the same in Bengaluru city as well. The city recorded a decline of 27% year-on-year in new launches in 2015, the lowest number of launches in five years. However, South Bengaluru is an exception in this trend.

South Bengaluru witnesses increase in new launches in the second half of 2015. Peripheral locations such as Chandapura, Anekal emerge as upcoming budget destinations. Notably, 66% of the total new launches in Bengaluru belong to the affordable segment with ticket size of Rs 25 lakh to Rs 75 lakh.

While other markets saw decline in new launches, South Bengaluru buck the trend. The market saw an increase a year-on-year increase of 30% in new launches. Interestingly, almost 88% of the total new launches in in second-half of 2015 are in the budget housing segment with ticket size below Rs 25 lakh were launched in South Bangalore. Majority of these launches were observed in the distant peripheral locations of South Bengaluru, such as Chandapura, Electronics City, Begur and Hosa Road.

East Bengaluru, which has houses in the ticket size of rs 25 to Rs 50 lakh also accounted for almost 50% of the new launches. It also witnessed an increase in sales in the second half.

North Bengaluru remains the hub of mid-segment and luxury housing projects and accounted for 45% of the total new launches in the premium housing segment (ticket size of above Rs 2 core), in areas such as Hennur Road, Thanisandra and Hebbal.

West Bengaluru emerged as the best performing market with a 30% increment Y-o-Y sales growth. Metro connectivity and availability of lifestyle projects is attracting home-buyers in the region.