Raja Housing News - Unsold Stock Flooded in Bangalore Residential Market

According to some reports, it has been estimated that Bangalore residential market has unsold stock of 50,184 units in second quarter (Q2) of 2013 as against 46,823 in first quarter (Q1) 2013. As far as the absorption was concerned, it stood at 6,519 units in 2Q13 as against 6,689 units in 1Q13.

According to a top executive from a leading realtor, it was believed that a total of 21residential projects were launched across Bangalore in 2Q13, thus offering 9,889 units against 10,009 units in 1Q13. In the meanwhile, eight residential projects consisting of 2,319 units in various sub-markets were withdrawn from active stock as they were completely sold out.

The executive further stated that in the Central (CBD) and Off Central (SBD), owing to low availability of large land parcels and high capital values, those micro-markets had witnessed a limited supply of residential developments. Moreover, those markets had very good social and physical infrastructure too.

Whilst in North Bangalore, the demand for high-end residential units remained high. After the launch of the Bangalore International Airport, residential real estate activity in North Bangalore has gained grip. With regards to this, the projects located around Bellary Road, Hebbal and surrounding areas are considered to be in the luxury segment.

The top executive also stated that North Bangalore was assured to be the next economic centre of Bangalore owing to its close proximity to the International Airport and planned social and the physical infrastructure in the North which have boosted development in the area.

However, on the other hand, demand for high-end residential developments is considered to be low in the South of Bangalore. In this micro-market, the housing requirement in this area increased after Electronic City established itself as an IT Hub. The top executive opined that despite this, it did not attract premium residential developments owing to poor social and urban infrastructure.

When it came to East Bangalore, Whitefield as a micro-market had developed into a self-sustaining area. The area is considered to be a good IT destination and the area also has good social infrastructure and developing physical infrastructure. Therefore, the demand for luxury residential developments remained high in the area.

The executive also went on to add that West Bangalore micro-market had not been that successful in attracting numerous realtors as it failed on the count of good social infrastructure. It was mainly dominated by industrial developments and had seen hardly witnessed any developments in high-end residential developments.