Bangalore's Realty Market Continues to be Stable

Bangalore:  Property price of Bangalore remains constant when real estate market in other metros like Mumbai and Delhi are still waning. It's been observed that Bangalore's real estate prices did not fall even with the economic crises happened in 2009.

By the end of 2011, the real estate intelligence PropEquity revealed that Delhi is at its peak of unsold inventory following Mumbai. As a result, developers are compelled to give attractive prices to improve their sales in the market.

Samir Jasuja founder and Chief Executive of PropEquity has been observed the reason behind the unstable market and unsold inventory as, boost in interest rates, limited funds, high in construction cost, problems related to land-acquisitions and the pricey property, one of the main concern for the buyers however, the real estate market outlook of Bangalore is much more different and stable than the volatile market of Mumbai and Delhi.

Industry experts pointed out the reason behind the steady market of Bangalore as the Garden city is a hub of IT companies and so the investor can make high investment in property which is converting Bangalore into robust market sales.  Sandipan Pal of Motilal Oswal Financial Services stated that “Bangalore-based developers outperformed their peers, with a strong uptick in launch and sales numbers. We expect this out-performance to continue,” reports DNA.

KS Girish, local director of Jones Lang LaSalle India stated that “Buyers tend to defer their decision to purchase until such a time that the interest rate moderates. But as most consumers in Bangalore invest in property for their own use, sales volumes decline, however, inventory remains stable,” reports DNA.

As per the SBI Cap Securities report, in Bangalore people are buying 6 million square feet house every month compared to the biggest real estate market in India like Delhi by 10 million square feet and Mumbai is by 6 million square feet in one month. The market outlook is not stable in Mumbai and Delhi and so the number of new launches has come down drastically. The reason of the downfall is because of critical economic crisis and so the rate of house absorption has dropped resulting in 132 million square feet of unsold inventory in Delhi and 99 million square feet in Mumbai, respectively.

According to Motilal Oswal Financial Services report, the Bangalore's real estate market would be stable for the next 9 to 12 months. Due to available resourses, intrinsic nature of pricing system and minimizing the cost escalations, the housing price of Bangalore city is expected to remain constant.

source: http://www.siliconindia.com/shownews/Bangalores_Realty_Market_Continues_to_be_Stable_-nid-102386-cid-6.html