Bangalore sees robust supply of residential units

Bangalore has witnessed launch of 13,200 units, accounting for the highest share of 30 per cent of the launches across the top eight cities during Q3 of the year. It was the only city to register over 10,000 unit launches for the third consecutive quarter in the year. With this, the number of launches in 2013 more than tripled in Bangalore to nearly 35,000 units till September, 2013. According to data from Cushman & Wakefield (C&W), a real estate advisory firm, the mid-end segment contributed to 55 per cent of the launches in the city and 29 per cent of the mid-end segment launches across top eight cities during Q3 2013.

Despite the higher number of launches, the mid-end segment saw an appreciation of 5-12 per cent in the capital values across select sub-markets. This was primarily due to the growing demand for residential units in proximity to IT hubs and the paucity of new launches in certain central areas of the city. Majority of the launches in the mid-end segment were concentrated in areas like Sarjapur Road and Bannerghatta Road in the South, Whitefield in East and Yelahanka and Jakkur in the North of Bangalore. Though the affordable segment contributed to nearly 31 per cent of the total launches for Bangalore, it amounted to 44 per cent of the launches in top eight cities during the quarter.

Affordable launches were concentrated in peripheral areas of North and West owing to the availability of land parcels and expected ease of connectivity due to ongoing and proposed infrastructure initiatives in these submarkets. Areas like Mysore Road in West and Jalahalli in North witnessed majority of launches in this segment. A substantial number of launches in the affordable and mid-end segment across the city indicated the diversity and availability of residential properties to suit the needs and budgets of different consumers.

The city also saw nearly 1,800 units being launched in the high-end segment, a 19 per cent increase q-o-q. High-end projects during the quarter were mostly concentrated in Eastern areas of Whitefield having a sizeable chunk of expat population while the two luxury projects launched in Q3 were located in prime Central submarket.

The city also witnessed an appreciation of 40-80 per cent in the new guidance values released by the state government in August. The inherent demand for residential spaces across the city coupled with the rising aspirations of the local population and the growing migration of working population due to the IT sector's dominance have contributed to this rise.

Going forward, Eastern and Southern submarkets are expected to witness good launch activity.

The high-end capital values are expected to remain stable while mid-end capital values in Eastern, South-eastern and South-western submarkets might witness a slight upward bias due to continued demand for mid-end residential properties.

HIGH-END SEGMENT

* Central: Lavelle Road, Off Palace Road, Off Cunningham Road, Ulsoor Road, Richmond Road, Race Course Road

* South: Koramangala, Outer Ring Road, Bannerghatta Road, JP Nagar, Kanakpura Road, Banashankari

* Off Central: Frazer town, Benson Town, Richards Town, Dollars Colony

* East: Whitefield, Old Airport Road

* North: Hebbal, Yelahanka, Jakkur, Devanahalli

* North-West: Magadi Road, Malleshwaram, Rajajinagar

MID-END SEGMENT

* Central: Brunton Road, Artillery Road, Ali Askar Road, Cunningham Road

* East: Marathahalli, Whitefield, Old Airport Road, Old Madras Road

* South-East: Sarjapur Road, Outer Ring Road, HSR Layout

* South-West: Jayanagar, J P Nagar, Kanakapura Road, Bannerghatta Road, BTM Layout, Banashankari

* North: Hebbal, Bellary Road, Yelahanka, Doddaballapur Road, Jalahalli, Hennur Road, Tumkur Road, Thanisandara Road

* Off Central*: Vasanth Nagar, Richmond Town, Indiranagar

* Off Central* *: Cox Town, Frazer Town, Benson Town, etc

* North-West: Malleshwaram, Rajajinagar

* Far South: Electronic City

* West: Mysore Road, Uttarahalli Main Road