BusinessIndia

Bangalore Real Estate Market Outpaces NCR and Mumbai Metropolitan areas

Bangalore real estate

The Bangalore real estate market saw sales of 15.58 million sq ft of residential space in the first quarter of this fiscal year.  This amounts to 13.9% share of the entire real estate market in the country.  On the other hand, although Mumbai Metropolitan Region and National Capital Region (NCR) had more sales in terms of residential space – 15.98 mn sq ft and 28.86 mn sq ft respectively – the saw a reduction (rather a fall) in sales by 60% and 57% respectively.  Bangalore though, saw a growth of 140% for the quarter ending June compared to similar period last year.

South seems to be emerging as the main real estate center in the country as in 2011-12, the cities in South had 40% home loan disbursals out of a total national disbursals of Rs. 1.95 lakh crores!

One of the interesting factor in the better performance in Bangalore specifically (and South generally) maybe that the buyers in this area are “End Users” as opposed to Investors.

“Bangalore property market is leading both in terms of loan disbursement and sanction. There is a turnaround in the real estate market in Bangalore, which is mainly due to slower growth as compared to markets like Mumbai, Delhi and Chennai,” said VK Sharma, CEO of LIC Housing Finance

Earlier the growth may have been slower compared to other markets.

The price rise, however, for the three citis – Bangalore, MMR, and NCR has been 8%, 8% and 15% respectively.  NCR has notched up twice the growth in prices compared to MMR and Bangalore.

Also read:  6 Top Websites to buy and sell Real Estate in India

There were also fewer project launches in NCR and MMR.  NCR was particularly hit by stalling of NOIDA Extension project stalling, specially with the elections going on in UP.  Another culprit is high Margin Contribution Requirements.

“Lack of project approvals has restricted new property supply. Additionally, margin contribution requirement from home loan seekers has gone up to 40-45% as loans are now being disbursed excluding stamp duty, registration and other taxes impacting sales,” Lalit Kumar Jain, president, CREDAI

Link

 

 

Get Drishtikone Updates
in your inbox

Subscribe to Drishtikone updates and get interesting stuff and updates to your email inbox.

Tags

Desh Kapoor

The panache of a writer is proven by the creative pen he uses to transform the most mundane topic into a thrilling story. Desh - the author, critic and analyst uses the power of his pen to create thought-provoking pieces from ordinary topics of discussion. He writes on myriad interesting themes. Read the articles to know more about his views and "drishtikone".

Related Articles

4 thoughts on “Bangalore Real Estate Market Outpaces NCR and Mumbai Metropolitan areas”

Check Also

Close

Get Drishtikone Updates
in your inbox

Subscribe to Drishtikone updates and get interesting stuff and updates to your email inbox.

Close
%d bloggers like this: