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The city’s residential real estate market continues to remain robust and has bucked the slowdown that’s being felt in Mumbai and the National Capital Region. Bangalore is seen to be holding out because of more realistic pricing and end-user demand.
Data from research and consulting firm PropEquity showed that between January to August this year, the total number of residential units absorbed in Bangalore was 24,734.
That’s a 3% drop from 25,460 units that were absorbed in the same period a year ago. However, in the same period, NCR reported a 42% drop and Mumbai Metropolitan Region a 34% drop in absorption.
“Bangalore is mainly end-user driven and that has led to lesser volatility in this market,” said Samir Jasuja, founder and CEO of PropEquity.
Godrej Properties, which has launched a slew of projects ranging in price from Rs 30 lakh to over Rs 1 crore in the last one month, has already reported sales of 200 units.
“We have seen good sales in other markets (Mumbai and NCR) as well, but Bangalore has certainly been one of the strongest real estate markets in India in the recent past,” said Pirojsha Godrej, CEO, Godrej Properties.
J C Sharma, MD, Sobha Developers, said the current real estate environment was promising as banks had slashed their home loan charges and were offering competitive interest rates. “Since pre-payment charges have also been abolished, there is increased affordability ,” said Sharma.
Last week, Gurgaonbased textile company Bhartiya Group forayed into the real estate market with the launch of its first project, a 125-acre township , Bhartiya City, near Hebbal in north Bangalore.
Snehdeep Aggarwal, chairman, Bhartiya Group, said that the first phase of the township consisting of over 600 units – priced between Rs 29 lakh and Rs 1 crore — was close to selling out. “Ground reports say the demand is completely end-user driven ,” said Aggarwal.
Mayank Ruia, head-residential , The Phoenix Mills, said, “Sales off-take in the city has been impressive thus far. We have sold over 300 units since September, and the off-take continues at a healthy pace.”
The Mumbai-based developer has launched an ultra-high end residential project, One Bangalore West, in Rajajinagar, which has apartments priced at Rs 2 crore and more.
First generation entrepreneurs , senior management from the IT/ITeS sector , and non-resident Indians are fuelling the demand for luxury projects.