Budget apartment prices stable in Bangalore

Prices of budget apartments (price range of Rs 25 lakh to Rs 35 lakh) in Bangalore have remained stable.

"The stability is because of the good supply. The home buyers have greater choice too," said D Timmana Goud, head retail assets-south, Axis Bank.

"Meanwhile, other major cities in south India like Chennai is facing a sharp appreciation in prices as there are fewer projects. Hyderabad is seeing some stability, but it is in a transition phase as more areas are being added to the city municipality," he added.

As for premium apartments (upwards of Rs 35 lakh), prices remain high in Bangalore as there are fewer projects and high demand that is driven mainly by IT/ITeS professionals. In case of Hyderabad and Chennai, they are in the growth phase and are yet to peak.

Axis Bank held its three-day 'Home Loan' exposition in Bangalore that concluded on Sunday.

The exposition, second by the bank in Bangalore, saw 44 developers and builders, mainly small and medium builders participating and they had offered 25,000 units in 250 projects.

The Bangalore centre of the Axis Bank has a book size of Rs 1,300 crore, and has been an important centre for us in disbursing retail loans, said Goud.

"The bank had a retail loans book size of Rs 7,327 crore in November 2007. The bank's retail asset centre in Bangalore has consolidated its position with its focus on home loans. It received a good support from reputed builders and customers over the last four years," he added.

"Last year after the home loan expo, the bank was able to disburse Rs 200 crore of housing loans," said Goud.

"The retail loan division has been in operation for four years in Bangalore and has a customer base of over 21,000," said Shrikantha M G, manager-retail assets, Axis Bank.

The bank, during its 'Home Loan' exposition held last year, saw 12,000 walk-ins, 8,000 applicants and in-principal sanctions (spot sanctions) to the tune of Rs 500 crore.