Bengaluru, July 30, 2015: Knight Frank India today launched the third edition of its flagship half yearly report – India Real Estate. It presents a comprehensive analysis of the residential and office market performance of Bengaluru for the period between January–June 2015 (H1 2015).
- Despite Bengaluru accounting for the highest number of new launches in H1 2015 in the country, it recorded a decline of 40% Y.O.Y, highlighting market malaise catching up with the city.
- Bengaluru performing better than the National Capital Region(NCR) and slowly closing in on Mumbai in sales.
- North Bengaluru exudes optimism regarding new launches and absorption while South Bengaluru loses its sheen.
- West Bengaluru witnessing a slew of residential projects in the premium segment with metro connectivity as one of the major factors adding to its attractiveness.
- Despite the relative slowdown in H1 2015, Bengaluru remains one of the best performing markets in India.
- Bengaluru Office market continues to be bullish in its demand while new completions face constriction; rents expected to increase by 6% during the next 6 months
- Gradual decline observed in IT/ITeS dominance; emergence of e-commerce takes forefront
- Big ticket transactions led the city to account for the largest deal sizes in the country
- Impending construction of the Metro rail project to have a short-term adverse impact on Whitefield
- Untapped northern corridor like Thanisandra andNagawara holds potential for office demand owing to residential traction, improved infrastructure, lower rentals and good connectivity to CBD
Speaking about the findings, Satish BN, Executive Director, South said:
“Notwithstanding a few hiccups, Bengaluru remains one of the best performing markets in India. Although the residential market did witness some lows with 40% drop in launches and unsold inventory build-up, we do expect buoyancy in the second half of the year as the office market has shown substantial quantum of absorption and this will have a positive impact on the residential market too”.
“Bengaluru Office market,on the other hand,continues to be bullish in its demand, accounting for the largest deal sizes in the country. However, dearth of ready-to-occupy office space is a concern as it is unable to catch up with the quantum of demand, and the depletion impacting on the interests ofpotential occupiers with large spacerequirements”.