BANGALORE: Bangalore residential market has unsold stock of 50,184 units in second quarter (Q2) of 2013 against 46,823 in first quarter (Q1) 2013.
As for the absorption, it stood at 6,519 units in 2Q13 against 6,689 units in 1Q13.
“A total of 21 residential projects were launched across Bangalore in 2Q13, offering 9,889 units against 10,009 units in 1Q13. Meanwhile, eight residential projects comprising 2,319 units in various sub-markets were withdrawn from active stock as they were completely sold out,” said Sanjay Chugh, head, Residential Services (Bangalore & Chennai), Jones Lang LaSalle India.
In the Central (CBD) and Off Central (SBD), Chugh said, “Because of low availability of large land parcels and high capital values, these micro-markets have seen a limited supply of residential developments. These markets have very good social and physical infrastructure.”
In North Bangalore, the demand for high-end residential units remains high. Residential real estate activity in North Bangalore has gained traction after the launch of the Bangalore International Airport. The projects located around Hebbal, Bellary Road and surrounding areas are in the luxury segment.
“North Bangalore is assured to be the next economic centre of Bangalore. Proximity to the International Airport and planned social and the physical infrastructure in the north have boosted development in the area,” explained Chugh.
Demand for high-end residential developments is low in the south Bangalore. The housing requirement in this area increased after Electronic City established itself as an IT Hub in this micro-market. “However, it did not attract premium residential developments because of poor urban and social infrastructure,” said Chugh.
In East Bangalore, Whitefield as a micro-market has developed into a self-sustaining area. Along with being an IT destination, this area has good social infrastructure and developing physical infrastructure. Hence, the demand for luxury residential developments remains high.
Chugh said West Bangalore micro-market has not been successful in attracting many real estate developers as it fails on the count of good social infrastructure. It is mainly dominated by industrial developments and has seen hardly any developments in high-end residential developments.