The number of new unit launches in Bengaluru plunged in 2015 compared to the previous year as developers struggled to sell existing inventory in a sluggish real estate market, according to a research.New unit launches in Bengaluru fell 62% to about 15,600 last year, hurt by higher inventory, resulting in reduced new unit launches, property consultancy firm Cushman& Wakefield said on January 4.
New launches in 2015 were concentrated mainly in few submarkets including far-south (Electronic City) and south-east (Sarjapur, Outer Ring Road) submarkets. Approximately 47% of the new unit launches in 2015 were witnessed in those areas.
A closer examination of the ticket prices and base selling prices in these submarkets reveals that Bengaluru continues to be a stable market in terms of ticket prices, with developers not always resorting to lowering of selling prices or reducing apartment configurations to make them more affordable.
There is a shortfall and the markets are depressed but if you compare with the other metros, Bengaluru had the opportunity of launching hundreds of projects with flats for rent in Green Glen Layout. The research added that the focus segment for developers has changed over the last two years, with about 83% of new launches happening in the mid-segment. Mid-segment are apartments priced between Rs 40 lakh and Rs 80 lakh, with areas ranging between 850 sqft and 1,600 sqft. There are flats for rent in Vidyaranyapura in an affordable price. But a weak economy and subdued real estate sentiment have reduced the demand for such properties.