The Confederation of Real Estate Developers Association of India (CREDAI) on Monday came out with its own study on the extent of unsold properties in Bengaluru, clarifying reports by other independent property consultants (IPC) which stated that the city had high unsold inventory.
According to a study conducted by Jones Lang LaSalle (JLL) on behalf of CREDAI, the IT city has an unsold inventory of just 4,492 units, about 2.2% of the total inventory launched in the last four years. This is a far cry from the reports of other IPCs which reported unsold inventory of close to 1 lakh units.
CREDAI has coined a new terminology ‘to be sold’ for all under construction housing units in the city, which amounts to 82,357 units, about 39.8% of the total inventory. The research firm has estimated the total residential real estate inventory at 206,753 units launched over the last four years. Various independent property consultants had estimated Bengaluru’s unsold inventory at close to 100,000 units in the recent days, thereby placing the city at second position in the country. The city was ranked above Mumbai in terms of unsold inventory. NCR topped the chart in this regard.
“The reality is that the city has just around 2% unsold units, while 40% of the total inventory is to be sold, which is under various stages of construction,” Sushil Mantri, past vice president of CREDAI and a leading builder said.
Ashutosh Limaye, head of research, JLL said Bengaluru has 82,357 units to be sold, while Mumbai Metropolitan Region has around 78,000 units. NCR has in excess of 150,000 units to be sold. The report titled “Analysis of Unsold Residential Inventory in Bengaluru as on December 2015” revealed that residential sales rate in Bengaluru has been stable at 9-10% in 2015. This was largely on account of affordable prices when compared to other key cities, he said. As a result of stable property prices, the units to be sold has been slowly declining quarter-on-quarter. Property price appreciation was also stable in the range of 5-10% year on year, he added.
Irfan Razak, chairman, CREDAI said the city is witnessing sales of around 45,000 units annually as against new launches totaling 35,000 units a year in the last couple of years.