Bangalore Residential Stock and Absorption

Published on July 22, 2013 by
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Bangalore is experiencing a positive flux across sectors, with evident development in – both public and private infrastructure especially road and transport. The city comprises of a strong salaried population resulting in the real estate market dynamics to largely act as per the consumer demand rather than speculation.

Bangalore Property market has primarily been an end user end user driven market. End users constitute around 75% share of the market today, one of the highest in developed markets of India. One of the prime reasons for the shift is ever increasing job opportunities, leading to an increase in the rate of migration and diverse demography.

Stock and Absorption

Nearly 119,000 residential units are under various stages of construction in the Bangalore market. Maximum concentration of residential stock is in South Bangalore (51%) followed by East (28%) and North (17%). Bangalore has been a balanced market both in terms of residential supply as well as property pricing. The residential pricing here is a direct function of demand rather than speculation based on investment segment.

The Bangalore residential market also provides ample options in ready to move-in as well as under-construction properties unlike many other cities where the stock is more tilted towards the under construction units or soft launches. In recent times, Hyderabad has also joined Bangalore in this league.

Stock and Availability

South Bangalore has witnessed highest number of launches and ongoing projects in Bangalore resulting in oversupply. Hence, the capital values in South Bangalore range between 3300 to 4500 per sq.ft. ( Electronic City - 3300 - 3500 per sq.ft. & Bannerghatta Road 4000 - 4500 per sq.ft.). However, a few recent launches in electronic city have been priced at 3900 and over. In summary, South Bangalore has 14000 units under construction and over 7000 units under ready to occupy condition.

East Bangalore has seen stable demand and supply, thanks to large presence of IT/ITes companies. The zone has over 9000 units under construction and less 2000 units under ready to occupy category.

There's been a lot of hype about north Bangalore, we see the zone open up to new launches in a phased manner. North Bangalore has over 5000 units under construction and less than 1000 units for immediate possession.

West Bangalore has been quiet for the last few years.

Key Locations in Various Zones
  • Bangalore North: Banaswadi, Hebbal, Hennur, Bellary Road, Yelahanka, Jakkur, HBR Layout, Doddabalapur, Devanahalli
  • Bangalore East: Whitefield, Marathahalli Old Airport Road, Old Madras Road, KR Puram, Sarjapur Road
  • Bangalore West: Malleswaram, Rajajinagar, Tumkur Road, Vijayanagar, Yeshwanthpur
  • Bangalore South: Koramangala, Electronic City, HSR Layout, Jayanagar, JP Nagar, Bannerghatta, Kanakapura Road

Source: Research Charts by IndiaProperty