BENGALURU: For the first time in last two years, Bengaluru has shown a decline of 14 per cent compared to the last quarter, in the Housing Sentiment Index for the quarter of April-June 2015. The aggregate Housing Sentiment Index for the period is 72, according to a study conducted by IIM-B and a property listing portal.
The Housing Sentiment Index (HSI) is based on an online survey of prospective home buyers. The index provides information on potential home buyers’ expectations and views regarding near term home price movements and decision to buy.
Data analysis reveals that the factors affecting the real estate market are rising price and high borrowing cost for a long period of time.
Sudhir Pai, CEO of the portal magicbricks.com said, “High construction costs, demand-supply mismatch, project delays and increasingly unsold inventory inhibit buyers from transacting in realty market. The mismatch between buyer’s expectations and property value of the existing stock needs to be addressed. Until then, the housing market in Bengaluru is going to remain subdued.”
However, despite the odds, South Bengaluru has emerged as the most preferred investment destination with 26 per cent of respondents showing interest in the region. Out of this, 27 per cent respondents are inclined toward the `20-40 lakh range, making it the most preferred property configuration in the city, according to the study.
A 12 per cent slump in sentiment was observed in respondents who preferred `40-60 lakh value range. Forty eight per cent of the respondents prefer to buy within the next six months (HSI 84), the study says.
The survey includes the cities of Kolkata, Ahmedabad, Mumbai, Pune, Delhi, Noida, Gurgaon, Bengaluru, Hyderabad and Chennai.
The IIMB-CRERI Magicbricks Index fills the critical gap in identifying and measuring changes in potential home owners’ expectations.