BENGALURU: A study has revealed that Bengaluru is the most preferred residential market with almost 27 per cent share in new housing projects for January-June 2015.
The study conducted by (CBRE) India, a commercial real estate services company, and titled India Residential Market View - H1 2105, states that Chennai and Bengaluru saw positive demand for real estate in the residential sector, accounting for more than 45 per cent of the total housing sales across leading cities, while the Delhi NCR region saw a steep decline.
Om Ahuja, CEO Residential, of Brigade Group said, “I welcome the finding of the study but it is rather relative as the sales in Delhi NCR region and market leader in real estate market Mumbai has dipped, which has given both Bengaluru and Chennai an upper hand.”
Till last year, the Delhi NCR region saw around 55 per cent growth in the real estate sector and accounted for around one seventh of sales nation wide in the residential section. Real estate prices in the region also went up as the demand was high.
“Bengaluru, on the other hand has seen a steady growth and it is the only metro, where within the municipal limits, a customer can buy a residential place from an A-grade developer for `6,000-7,000 a sq ft. Realistic and affordable price has added to the success of Bengaluru. To top this commercial leasing in the city has gone up, that indicates job creation, which has in turn added to more sales,” said Ahuja.
Chennai and Hyderabad saw a rise in new project launches, while Delhi NCR and Mumbai saw a dip due to already existing housing inventory and project delays. Mumbai and Hyderabad, meanwhile, noted a slight drop in home buyer interest levels during the first half of the year.
The finding said housing sales and new project launches across India during January-June this year saw a marginal dip of three per cent as home buyer demand declined marginally by around two per cent compared to the July-December period last year. Further, west Hyderabad and Pune witnessed price increase in the range of two to six per cent due to healthy demand.
“The ‘housing for all’ initiative, along with revival of major urban infrastructure projects and removal of impediments to land acquisition, can in unison reap rich dividends for the sector in the long term”, said Anshuman, Magazine Chairman and managing director of CBRE South Asia Pvt. Ltd.