Bangalore accounts for 31% of new residential units launches across India

More than 10,500 residential units were launched in Bangalore in the second quarter of 2013, accounting for 31% of the total launches, says a Citi report.

East Bangalore registered the highest number of, followed by northern submarket & south-east Bangalore.

"Healthy demand from IT population resulted in developers preferring these locations for new project launches. Mid end segment accounted for the largest chunk of launches adding up to almost 50 % of the total launches followed by the affordable category with 34 % of the launches and remaining in the high-end segment," mentioned the report.

Further under construction properties in east registered price appreciation of up to 12 % primarily due to their proximity to areas with developed social infrastructure and IT hubs. South-West market witnessed an appreciation of up to 11 % in the capital values.

Residential real estate market is anticipated to witness a stable trend for both rental & capital values for most micro markets in the next quarter. The north-west submarket is expected to see rentals moving northwards for both mid as well as high-end segments due to the upcoming metro, developed social infrastructure & good connectivity to central locations of the city. Driven by continued investor interest north Bangalore is expected to witness an uptrend in capital values for both mid and high-end properties.

"Following the last quarter's trend many developers / promoters continued to offer no pre-EMI schemes to attract buyers, wherein buyers have to pay 20 % as the booking amount and rest 80 % need to be paid at the time of possession," says the report.


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