Developers are seeing drop in footfall, enquires and in delay in deal closure.
Residential property sales across Bangalore have dropped up to 40 per cent in April-June quarter as compared to the peak of Q4 2012, as IT professionals remain cautious due to high prices and interest rates.
"Southern real estate sales are largely driven by IT clientele (60-65 per cent). Developers are seeing drop in footfall, enquires and in delay in deal closure. New apartment sales booking for real estate brokers has dropped to 30 units in Mar-12 to 16 units during Jun-12 and the leads in hand suggests further weakness during July-12," Karvy Institutional Research, a brokerage firm.
The 3 bhk segment priced at Rs 80 lakhs to 1.3 crore was worst impacted. "The current sluggishness in the IT sector coupled with 'fattening of benches' is playing on buyers psyche. Buyers are reluctant to lock-in at peak prices on back of recessionary fears, and are following a "wait and watch approach" until clarity emerges over next 6 months," mention Karvy.
Even the affordable housing bracket with Rs 3-4 million ticket size is witnessing lack of buyers interest. "Price correction of 10-15 per cent is necessary to revive 30-40 per cent drop in volume, next two month crucial. Buyers are demanding 10-15 per cent price cuts before taking a plunge," says Karvy.
"Southern real estate sales are largely driven by IT clientele (60-65 per cent). Developers are seeing drop in footfall, enquires and in delay in deal closure. New apartment sales booking for real estate brokers has dropped to 30 units in Mar-12 to 16 units during Jun-12 and the leads in hand suggests further weakness during July-12," Karvy Institutional Research, a brokerage firm.
The 3 bhk segment priced at Rs 80 lakhs to 1.3 crore was worst impacted. "The current sluggishness in the IT sector coupled with 'fattening of benches' is playing on buyers psyche. Buyers are reluctant to lock-in at peak prices on back of recessionary fears, and are following a "wait and watch approach" until clarity emerges over next 6 months," mention Karvy.
Even the affordable housing bracket with Rs 3-4 million ticket size is witnessing lack of buyers interest. "Price correction of 10-15 per cent is necessary to revive 30-40 per cent drop in volume, next two month crucial. Buyers are demanding 10-15 per cent price cuts before taking a plunge," says Karvy.
No comments:
Post a Comment