The Indian real estate market is on the revival path with major reforms like RERA and GST bringing back transparency and accountability into the sector and improving buyer and investor sentiments alike. Mumbai and Bangalore are the two leading real estate markets in the country for the first quarter of 2018 (calendar year) as per reports. They are the top two markets by way of new launches of property and also in terms of sales volumes.
The MMR (Mumbai Metropolitan Region) is clearly in revival mode with 12, 300 units sold in the first quarter of 2018 which indicates growth of 12% on a year-on-year basis and Bangalore saw sales volumes of 11, 500 units in this period. This indicates growth of 15% in sales volumes. 127% was the increase in the number of new launches as well according to reports.
There were 8, 600 new housing units launched in the quarter in Mumbai and Bangalore saw the highest launches in the country amongst all the major real estate markets in South India. Around 6, 800 new housing units were launched in Bangalore for the quarter ending on the 31st of March, 2018. Chennai and Hyderabad saw 2, 100 and 2, 600 housing units being launched respectively. According to reports, enhanced job prospects and major upgrades for Bangalore infrastructure are key reasons behind good sentiments of buyers along with heightened activity in the commercial real estate market. The Bangalore realty market sees the most traction from end-users who have now returned to the property market after sitting on the fence for a long time.
In another positive development, the unsold inventory in Bangalore came down by close to 5% to stand at 91, 000 units for the quarter. There has been only a slight increase in property prices to the tune of 1% as compared to the earlier quarter. As per reports, average property prices in Bangalore tend to hover around Rs. 4, 850 per sq. ft. currently.
The residential real estate category in Bangalore is at number two after the MMR (Mumbai Metropolitan Region) with regard to overall housing absorption and supply as per experts. Bangalore has seen growing demand from professionals working in the IT and ITeS sectors along with those working in the rapidly flourishing start-up space in the city. Infrastructure in Bangalore is improving continually while healthcare and educational facilities are also top-notch in the Garden City.