If you are planning to buy a house in Bengaluru, then there is some good news for you. As the overall real estate market slumped, Bengaluru remained one of the best performing markets in the country in the first half of 2016. This trend is likely to continue in the the second half with new launches estimated to firm up by 4 per cent as compared to second half of 2015.
The Knight Frank’s “India Real Estate Residential and office” for the January-June 2016 quarter said,” Bengaluru’s residential space saw 13 per cent rise in new launches and 18 per cent increase in sales on a year-on-year(Yo-Y) basis as compared to first half in 2015.
Even as most of country’s real estate market remain subdued in all segments, Bengaluru’s premium market (comprising locations such as Lavelle Road, Richomond Road, Indiranagar and Malleshwaram) saw a substantial increase of 23 per cent in new launches in first half of 2016, said Knight Frank report. The demand for premium properties surged 35 per cent in first half of 2016 as compared to overall first half of 2015 that saw poor sales.
“However, due to the slackening of the premium housing markets in the past year, the weighted average price growth YOY in the premium segment saw a marginal decline of 1 per cent in first half of 2016, as compared to first half of 2015,” the report said.
On price front, the premium housing segment in Bengaluru witnessed a slower rate of growth in its weighted average price is last 12 month, compared to the growth in the city’s overall price. Bengaluru’s overall price growth was seen at 3 per cent, the premium housing saw a slight decline of 1 per cent.
The real estate consultant expects the overall weighted average price in Bengaluru to witness a sluggish growth of 3 per cent in second half of 2016 compared to second half of 2015, owing to the large quantum of inventory that needs to be offloaded.