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Bangalore residential real estate market sees slowdown | INRnews

Bangalore, India, September 23, 2007 - The Bangalore residential real estate market is experiencing a change in market dynamics and an overall slow-down in purchasing activity according to global real estate services firm Cushman & Wakefield. High prices, steep home-loan interest rates and anticipation of a price correction have resulted in only a marginal price escalation in the past few months accompanied by a 15%-25% drop in primary sales across micromarkets of Bangalore.

According to Cushman & Wakefield, a number of projects in South-East Bangalore (Sarjapur Road, Whitefield, Marathalli, Outer Ring Road) have been completed. With adequate supply in the mid-segment (1,200-1,600 sq ft), apartment rentals have stabilised and are expected to continue to remain the same.

North Bangalore is seeing a number of villa developments between Rs 1.2 - 2.5 crore. In South Bangalore, DLF is proposing an 85-acre residential project with 3,000 apartments, 1,200 rowhouses and around 300 independent houses.

Prices in and around the CBD have not increased in the last six months according to Cushman and Wakefield.

Cushman & Wakefield expects market conditions to be sluggish in the short to medium term.  With the new Comprehensive Development Plan finalised, many developers are expected to apply for fresh sanctions of plans to avail higher FSIs. As a result some developers may delay launch of projects as the impact of new policies is awaited.

Click on the link below for a snapshot of Bangalore Property Prices and Bangalore Rental Values by area:
Residential Snapshot Bangalore - Sep 2007

 


By INRnews Correspondent


Comments

I don't think people are
getting it. A large chunk
of these home were being
bought by NRI's. When the
boom started the US dollar
was fetching 48 rupees, now
it is around 39. What does
that say? The home prices
must come down by 20%! All
IT companies are going to
suffer from appreciated
rupee and that will affect
hiring, salaries, bonus,
etc.

Another thing that is
difficult for Bangaloreans
to fathom is the concept
of bubble and bubble
bursting because they
have never experienced
it.

Just wait a few months
and see what happens to
the housing market.

The information is very useful. It tell us where bangalore realestate is going.

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