Real estate consultants Cushman and Wakefield have alerted a deceleration in the real estate Bangalore market, especially in the residential property segment.

Down, but not out….

High property prices and the unbending home loan rates have kept buyers at bay, where a 15-25 % fall has been recorded over the last 6 months. Some real estate agents in Bangalore, however, are optimistic of the future graph the city’s property market will take in the coming months.

The optimism is driven by the renewed interest in the NRI market and some banks initiating a cut in their home loan rates. As per the report, the eastern and south eastern stretches in Bangalore where IT industry professionals are concentrated, property rates have improved marginally.

North Bangalore, charecterised by villas and independent bungalows, has also been able to sustain its price range with support from end-users and investors. Several new high rise projects in South and South-East Bangalore have become available to end-users, leading to stability in rental values of apartments between 1200 to 1600 sq. ft.

Property rates in Bangalore

Property prices in Bangalore range from Rs.1.2 crore to Rs.2.5 crore for villas. Commercial property in Bangalore’s CBD is available at around Rs.12, 000 per sq. ft, while Bannerghatta Road and Kanakapura Road fetch Rs.2, 500 to Rs.3, 200 per sq. ft.

Bringing back the business….

Bangalore’s real estate companies are adopting newer strategies to woo investors by offering more facilities and schemes. Developers in Bangalore are also resorting to applying for fresh approvals for their already sanctioned projects to avail of the relaxed FSI norms.

Real estate agents are hopeful of Bangalore gaining from the retail boom which is currently sweeping the country, and expected to generate 90 lakh employment opportunities over the next 5 years. The Karnataka Government has a satellite development plan for Bangalore which will sustain the city’s real estate market in the future.

Foreign players have evinced an interest in the Bangalore property market which spells good times for the city. 1.4 lakh dwelling units across all categories are under construction and would be available for possession by 2010 Mid range properties in Bangalore have much scope to expand, especially in the Rs.35 – 50 lakh price range.

Experts expect a demand of an additional 50,000 units by 2008, which would keep the real estate market in Bangalore going for a few years.

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