From speculative investor-led buying for a good part of the last decade, the city's real estate
sector has come to be an end-user market. A reason why residential
prices in Bangalore have not skyrocketed like in Mumbai and the National Capital Region (NCR) in recent years.
Chandrashekar Hariharan, CMD of property developer Biodiversity Conservation India, says the average per sqft price in Bangalore is roughly 60% of the going rates in Mumbai and NCR. While premium properties in Bangalore can be bought for Rs 4,000 to Rs 5,000 a sqft, a two bedroom apartment in certain Mumbai locations starts at Rs 12,000 per sqft.
Muninder Seeru, executive director in real estate company G:Corp points out that every city has a price threshold level and Bangalore cannot take it property prices beyond Rs 4,750 per sft. "Pricing beyond this may not be attractive." He says the city might have an oversupply of units but not an oversupply of 'quality residential units', as end users are lapping up quality inventory that comes in to the market.
Data available with developers shows that Bangalore is clocking a healthy monthly absorption of 3,000 units by end users, which has resulted in good loan off-take. "The housing finance companies are disbursing loans worth Rs 1,500 crore every month. Many of these are for homes with a ticket size of Rs 60 lakh," said Hariharan.
M Murali, MD of Shriram Properties, said the company has sold 1,650 apartments in Bangalore of which 99.5% of the buyers were end users. A reason why Bangalore is not seeing speculative price appreciation.
"By and large the investor community has vanished from Bangalore," said Balakrishna Hegde, MD of Chartered Housing. Bangalore, he said, has a population of 80 lakh and there are only 14 to 15 lakh dwelling units in the city. "Hence there is enough scope for more residential units," he said.
Ravindra Pai, MD of Century Real Estate, said the absorption rate was flat in the last quarter because of weak sentiments about the economy.
The developers were speaking at a discussion organized on Wednesday by magicbricks.com, one of India's leading property portals. The event, MB RE+ Dialogues, is a movement to empower the real state sector with knowledge about consumer behaviour as well as prevailing market trends. The event also saw the participation of Bangalore Development Authority (BDA) commissioner Pradeep Singh Kharola, who said that he would try to get all approvals for builders done in 30 to 60 days. Builders say it currently takes two to three years
Chandrashekar Hariharan, CMD of property developer Biodiversity Conservation India, says the average per sqft price in Bangalore is roughly 60% of the going rates in Mumbai and NCR. While premium properties in Bangalore can be bought for Rs 4,000 to Rs 5,000 a sqft, a two bedroom apartment in certain Mumbai locations starts at Rs 12,000 per sqft.
Muninder Seeru, executive director in real estate company G:Corp points out that every city has a price threshold level and Bangalore cannot take it property prices beyond Rs 4,750 per sft. "Pricing beyond this may not be attractive." He says the city might have an oversupply of units but not an oversupply of 'quality residential units', as end users are lapping up quality inventory that comes in to the market.
Data available with developers shows that Bangalore is clocking a healthy monthly absorption of 3,000 units by end users, which has resulted in good loan off-take. "The housing finance companies are disbursing loans worth Rs 1,500 crore every month. Many of these are for homes with a ticket size of Rs 60 lakh," said Hariharan.
M Murali, MD of Shriram Properties, said the company has sold 1,650 apartments in Bangalore of which 99.5% of the buyers were end users. A reason why Bangalore is not seeing speculative price appreciation.
"By and large the investor community has vanished from Bangalore," said Balakrishna Hegde, MD of Chartered Housing. Bangalore, he said, has a population of 80 lakh and there are only 14 to 15 lakh dwelling units in the city. "Hence there is enough scope for more residential units," he said.
Ravindra Pai, MD of Century Real Estate, said the absorption rate was flat in the last quarter because of weak sentiments about the economy.
The developers were speaking at a discussion organized on Wednesday by magicbricks.com, one of India's leading property portals. The event, MB RE+ Dialogues, is a movement to empower the real state sector with knowledge about consumer behaviour as well as prevailing market trends. The event also saw the participation of Bangalore Development Authority (BDA) commissioner Pradeep Singh Kharola, who said that he would try to get all approvals for builders done in 30 to 60 days. Builders say it currently takes two to three years
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