Bengaluru's love affair with property continues to cool
Synopsis
There are a number of reasons so as to why there was a massive drop in residential unit numbers in 2016. Finalisation of the Real Estate Act and delays in obtaining approvals were two of the main reasons. The unrest over Cauvery water hampered new launches in the second half of the year.
Bengaluru saw 24,800 residential units launching in 2016, which is 35% lesser than the previous year. A report – ‘India Residential Property Market Overview – Realistic Pricing Key to Revival 2017’ by Colliers International revealed this stat.
“While this reflects a 35% Year on Year decrease over 2015, the pipeline of new units in the pre-launch stage in the primary market should increase setting an optimistic outlook for 2017,” the report said.
There are a number of reasons so as to why there was a massive drop in residential unit numbers in 2016. Finalisation of the Real Estate Act and delays in obtaining approvals were two of the main reasons. Also the unrest over Cauvery water hampered new launches in the second half of the year.
However, the report also revealed that the real estate market of Bengaluru did not get much affected by demonetisation unlike Delhi and Bengaluru.
“In comparison to Mumbai and the NCR, Bengaluru was less impacted by recent demonetisation as the city’s residential market is primarily driven by the end-user demand comprising a white-collar population employed in the IT-ITeS sector,” the report stated.
The report has also predicted that there will at least be a 7-10% rise in residential units in the new calendar year.