Bengaluru is emerging as the winner in the real estate sector. As per a recent report, the city’s market has outperformed all other cities in terms of shedding unsold housing inventory.
According to the latest report by Anarock Property Consultant,Bengaluru has witnessed a remarkable decline of 25% in the total unsold stock. Apart from the sharp decline in inventory, the city’s housing sales increased by 26% in the September quarter over the same period last year, the highest amongst all cities.
The credit to the uptrend in the city’s real estate sentiment can be attributed to high end-user demand by the continuing inflow of the workforce in IT and ITES companies.
“Burgeoning commercial activity, a cutting-edge start-up culture and realistic property prices dictated by end-user demand have kept Bangalore’s real estate market vibrant, and generally more resilient than in other cities.” Anuj Puri, chairman of ANAROCK Property Consultants told ET Realty. “The strong IT/ITeS economic dynamo continues to power most of the city’s residential.”
The maximum housing supply of Bengaluru was seen in the mid-segment with a price range of Rs 40 lakh to Rs 80 lakh. No wonder, the share of affordable housing rose dramatically over the last two years, increasing from 16% in 2016 to 25% in 2018.
Inside Bengaluru, it is White Field, Electronic City, Thanisandra and Sarjapur that saw the maximum supply in the recent times.
The rise in Bangalore real estate is, however, drawing a mixed response. While the developers are excited over the renewed NRI interest as well in the city, others fear that the city will soon become a concrete jungle due to unchecked urbanization.
The residents’ associations of the city fear that by 2025, 95 per cent of the city will be just concrete. Quickly depleting green cover, unchecked urbanization, poor solid waste management and the inability of RERA in solving consumers’ problems reportedly are some of the issues plaguing the city’s residents.