BANGALORE: Although the Bangalore residential market has been healthy and averaging around 30 per cent across the city, apparently not all segments are reporting good news. According to several real estate agents the higher end market is not shining as much as expected.
“While larger valued properties priced around Rs 2 crore have not been selling as fast as they are being promoted, the large mid-segment, comprising mostly of 2 and 3BHKs have recorded a steady growth,” states Yeshovardhanan S, a property and marketing consultant for several prominent builders.
Although most of the builders have launched primarily mid-segment oriented projects in the Rs 40–70 lakh budget, there have been several others who have also ventured into the super luxury space with big budgets.
According to insiders, sales in this segment did not meet even 50 per cent of the target despite promotions, pre-launches and launch offers which created a fast change in the set of offerings with the developer community. This has ensured access of such projects to the mid and upper-mid segment with a little stretch in their budget.
Many real estate developers have corrected their prices to attract buyers from this segment, instead of holding on to the property.
“Super luxury flats of a certain well known Bangalore focused player are reported to be about 35 per cent cheaper than the announced rate,” states Ramani Gopal, a real estate agent in North and North-East Bangalore. “In fact many high-end villa projects are now being announced with high-rise apartments to help sales. Some of the announcements in Bangalore for villas are now priced at around Rs 50 lakh and villaments around Rs 47 lakh.”
Developers are also offering lower booking amount and a perceived lower price for 3BHKs to further lure the buyers.
Alternately, several builders are also down-scaling their offerings to lure prospective buyers. Strategies adopted include using modern technology for cost-efficient and faster construction with modified amenities. These include flooring with vitrified tiles instead of Italian marble, standard bathroom fixtures instead of high-end ones and granite instead of fancy tiles in kitchen and outdoors.