The number of new project launches in the housing sector in Bengaluru has seen an upswing in the first quarter of 2019 from that of the previous quarter, primarily in regions close to locations where IT parks are situated, a report by a private firm that analyses real estate data and markets indicates.
According to the report titled PropEquity Residential Real Estate Update for Bengaluru — Q1 2019, the North-East and South-East regions of the city saw the maximum number of new launches, catering majorly to the city’s working population in the IT sector.
“Mid Segment (94%) saw the maximum launches followed by Luxury (6%),” the report reads.
However, the data analysis on the city’s real sector indicated that the number of units launched in the first quarter of 2019 was less compared to the previous quarter which was 9,494 units. A decrease of 5 percent in the number of new launches has been observed when compared to the same quarter in the previous year.
The report indicated there was a huge demand for housing units in Electronic City and Whitefield areas, given the proximity to the city’s major IT Parks from the regions.
Interestingly, Devanahalli on the outskirts of the city, where the Kempegowda International Airport is situated, has also garnered the interest of buyers due to “proximity to the airport and ample land availability.”
As far as pricing is concerned, the weighted average available price of a house this year was estimated at Rs. 5,088 per square feet.
The report further indicates that over 86,000 units have been committed for delivery in 2019, with buyers in the mid-segment expected to receive the major share of the same.
The absorption ratio of housing units in the city was recorded most in Bilamaranahalli areas, followed by Carmelaram, Varthur, Tumkur Road and Hoodi.
Going by the report, the launch of new housing projects in 2019 catered most to mid-segment buyers (69 percent), followed by buyers in the luxury segment (21 percent) and affordable segment (9 percent).
The report also highlights the long-awaited suburban train network for Bengaluru especially in the congested Outer Ring Road areas of the city is soon going to be a reality, as a major infra/policy update. “It will see more than double the daily ridership of Bengaluru metro (with a total of 17 six-car trains running per hour) in its existing form by 2025,” the report reads.
The report concluded that the increase in commercial activity, positive buyer sentiments, infrastructure upgrades and various job opportunities in the city have given a major boost to the residential market.
“Bengaluru is also home to several mid-level IT professionals who have added to the demand for mid-segment housing,” the report says.