Knight Frank India says due to demonetisation residential property prices will come down in next few quarters. Q4 of 2016 saw 45% drop in new launches in Bengaluru residential property projects. Region-wise South Bengaluru had the highest number of new launches
Good news for people looking to buy a house in Bengaluru!
According to independent global property consultancy, Knight Frank India, due to demonetisation residential property prices will come down in next few quarters.
The executive director of South, Satish BN, said that they are expecting a drop of 10% to 12% in property rates depending upon the builders, stage of construction, and also the locality in which the property falls. Also, in the fourth quarter of the ongoing fiscal year, the real estate in the city will witness a substantial drop in prices. This quarter will see 65% drop in new launches and 45% fall in sales.
Knight Frank India, also said that the last quarter of last year saw that Bengaluru real estate saw 45% drop on new launches, and the reason for the decline in new launches can be attributed to various factors including the higher number of unsold inventory, BBMP's drive against encroachment, and of course, demonetsation.
Region-wise South Bengaluru had the highest number of new launches due to comparatively lower rates, the hub of employment, and Namma Metro prospects.
The IT capital is one of the fast growing city in the country that is drawing many for employment purposes leading to higher demand for residential properties. However, there is various civic factors and demonetisation playing its part in the last few quarters that are forcing the drop of prices.
In other words, this is a good period to buy residential property for Bangaloreans.
