The real estate market in Bangalore is definitely showing signs of a major revival as per several studies and reports. According to studies, the city witnessed positive sales growth for real estate in the first quarter of 2018 or the period between January and March. Reports state that Bangalore has surpassed both Chennai and Hyderabad in terms of property sales to emerge as the dominant realty market in South India. According to reports, demand is being witnessed from professionals working in start-ups and the IT and ITeS sectors.
Sales of property stood at around 11, 500 units in the city in the first quarter of 2018 as compared to 2, 300 units and 3, 800 units sold in Chennai and Hyderabad respectively. 6, 800 new units were also launched in this period in Bangalore as compared to 2, 600 units and 2, 100 units in Hyderabad and Chennai respectively. The residential real estate market is number two after the MMR (Mumbai Metropolitan Region) with regard to absorption for Q1 2018 and overall supply. Bangalore’s housing market has witnessed good growth arising from positive customer sentiments, heightened commercial activities and upgrades to infrastructure along with higher job opportunities. Bangalore is a market driven majorly by end-users according to experts.
There is increasing demand from the flourishing IT and ITeS sector and also via the start-up scene in the city which is thriving. There is also a positive rub-off from the top-class healthcare and educational facilities available in the city along with continual upgrades in terms of physical infrastructure. Additionally, unsold inventory has come down by a heartening 5% in the first quarter of 2018 for Bangalore as per reports. Property prices have gone up by almost 1% in this period and average property prices now stand at around Rs. 4, 850 per sq. ft in the city.
The mid-level IT and ITeS professionals are contributing towards sizable demand for homes priced between Rs. 40-80 lakhs. Popular residential micro markets in this category include Outer Ring Road, Electronic City, Whitefield, Sarjapur Road and some areas in North Bangalore. Affordable housing units or homes priced lower than Rs. 40 lakh are found majorly in areas like Mysore Road and Hosur Road among others.