Bangalore residential real estate market is said to remain active in the year 2015 with over 300,000 units to be up for sale. It also amounts for the inventory upto the year 2018. The IT hub of India has attracted a large amount of work force from all over India.

1. Real Estate Activity Improves in Bangalore
Bangalore residential real estate market is said to remain active in the year 2015 with over 300,000
units to be up for sale. It also amounts for the inventory upto the year 2018. The IT hub of India has
attracted a large amount of work force from all over India. The IT boost has also helped the real
estate sector immensely over the years. The increase in the work force has created a demand for
real estate in the region
According to a recent study by Cushman & Wakefield (C&W), “The supply projections indicate that
nearly 56% of new units may cater to the MIG, 29% to the LIG and remaining 15% to the HIG. The
cumulative demand for residential housing (until 2018) is projected to be 438,600 units with 44% in
the MIG and 31% in the LIG. Considering the high requirements, demand is likely to remain unmet in
all segments with a total demand-supply gap of around 196,000 units with a high paucity (38% of
total shortfall) in the HIG.”
Properties and sites for sale in Bangalore mostly caters to the middle income group. This is due to
the ever growing population of mid-level IT employees in the city. The city has attracted a good
amount of commercial and office space real estate because of the same reason. Housing is the key
development factor in Bangalore, which coupled with the growth in infra and other facilities have
resulted in a well-balanced real estate sector. Apartment from this luxury housing becomes a very
popular sector in the city, with many developers specifically targeting the HNIs in the city. Mid-size
2BHK flats in Bangalore mostly targets the middle income group whereas the larger housing units
are restricted to the luxury segment.
According to Sanjay Dutt, Executive MD, South Asia, Cushman & Wakefield, “The private sector
housing, which is largely responsible for creating housing in India, has been grappling with many
issues such as rising input costs, expensive land valuations, outdated building norms, restricted
access to funding, serious delays in regulatory processes and uncertain economic conditions
resulting in poor and/or slow sales volumes, all of which have resulted in holding back the growth of
this sector since the last 2-3 years. Consequently, the demand-supply imbalances across cities have
been becoming more pronounced.”
According to the study the demand for housing is going to quadruple in India with over 13 million
housing units by 2018. The country is growing and so is the population and its need for quality living
space. Major cities like Bangalore, Delhi, Mumbai, Chennai and Hyderabad are said to be the key
urban centres of growth. The study also points out that MIG or middle income group will be the key
driver of real estate across the country. Urban and suburban centres both with see MIGs as the main
home buyer segment of India.
Source: https://www.apsense.com/article/real-estate-activity-improves-in-bangalore.html
http://www.indiaproperty.com/