BENGALURU: About 1.21 lakh ready to occupy houses are unsold in city. It would require at least two years to sell these houses, a report by real estate consultant firm Knight Frank has found. This comes even as there is no visible let-up in the inflated pricing in the housing sector.
Launching the annual report- India Real Estate, an analysis of the residential and office market performance of Bengaluru for July-December 2016, Satish BN, Executive Director (South), Knight Frank said here on Tuesday that there were no takers for these ready to occupy buildings. A majority of these unsold properties are in South Bengaluru.
Post-demonetisation move, there has been a fall in new launches by 65 per cent. Sales have dipped by 45 per cent, the study has revealed. In the second half of 2016, the premium markets saw a decrease of 12 percent in new launches and 3 percent dip in the sales.
The city’s real estate sector has come under considerable pressure in the last two years, realtors told Express. “While the buyers are anticipating fall in prices, builders have already reduced their profit margins in the last two years,” said Farooq M, Director, BangaloreCityhome.
“The margin of profit has already been reduced by 10-15 per cent. People who wanted to sell a two-bedroom house for Rs 45 lakh earlier are now selling it at Rs 40 lakh,” he added.
The demonetisation move also has had a major impact on sentiments of people.
“Indians usually do not share details of properties even with their extended relatives. But now, the government is trying to put everything in public domain. This is not going well with a lot of people.”
Experts at Knight Frank indicated that the stress in housing sector is likely to continue for at least one more quarter in 2017. However, with the rising demand for office spaces, they expressed hope that the demand for houses too would see a rejuvenation.