BANGALORE: Bangalore's residential real estate market remains resilient despite global turmoil driven by demand for mid-end homes. The city saw 35,500 residential units launched during 2012 and around 8,000 units in Q1 2013.
"The quantum of new launches witnessed by the city in the past two years will restrict substantial upward movement. The year 2012 saw the absorption of approximately 36,000 residential units," says a recent report by Knight Frank.
South Bangalore witnessed the highest number of new launches in 2012 taking up 48% of the total pie followed by North Bangalore at 33%. "Most of these projects are scheduled to be completed in 2015, thereby denoting the possibility of a glut of ready projects in the market in that period," said the report.
As per the report, the residential prices in Bangalore moved in narrow ranges during 2012, barring locations like Hebbal, Whitefield, Tumkur Road and Magadi Road which witnessed price appreciation between 10-15% in Q1 2013 over the prices in Q1 2012. "The quantum of new launches witnessed by the city in the past two years will restrict substantial upward movement," the report mentioned.
According to Knight Frank, during the year north Bangalore will continue to be one of the sought after residential markets owing to the various infrastructure initiatives underway.South Bangalore is also expected to see healthy absorption level owing to the IT/ITeS populace engaged with the office projects along the outer ring road. However, Whitefield, in the east, will continue to attract buyers, owing to its proximity to workplace centres and the presence of retail and social infrastructure.