Mumbai Metropolitan Region (MMR) has witnessed highest sales among seven property markets with 12% rise at 12,300 units, while Bangalore recorded sales of 11,500 units. Bangalore led on the absorption front with 15% rise in sales with 127% jump in launches, showed data from ANAROCK Property Consultants.
While Mumbai saw maximum number of launches at 8,600 units, the Silicon Valley of India has witnessed highest launches among key south India property markets with nearly 6,800 new units supply in comparison to Hyderabad and Chennai that saw 2,600 and 2,100 units launched, respectively.
“Increased commercial activity, positive buyer sentiments, infrastructure upgrades and improved job opportunities in the city have given a major fillip to Bangalore’s housing market,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “This market is largely driven by the end-users who were in wait-and-watch mode so far. These buyers have now actively returned to the market on the back of the overall sentiment upsurge resulting from the Bangalore’s rapidly improving market fundamentals.”
Unsold housing stock in Bangalore declined by nearly 5% – to 91,000 units during the quarter. Also, property prices have seen a marginal increase of 1% from previous quarter, with the current average property prices in Bangalore being Rs 4,850 per sq ft.
“Even at a pan-India level, Bangalore’s residential market is currently only second to the Mumbai Metropolitan Region (MMR) in terms of supply and absorption for Q1 2018,” says Puri.
According to him, the enhanced market performance is primarily driven by increasing demand from the IT-ITeS sector, which has belied the fears of US President Trump’s policies putting a fatal dent into India’s InfoTech story. Other factors at play in Bangalore are the thriving start-up ecosystem across the city, the presence of excellent education and healthcare facilities, and constantly improving physical infrastructure.