Demand for residential real estate plunged in Bangalore
Rajaji Nagar, RMV Extension Stage 2, Haralur Road, JP Nagar Stage 6 and Konanakunte are the main localities which experienced an increase in house prices during the quarter from April to June.
According to a report by Magicbricks PropIndex, the second wave of the COVID-19 pandemic and the lockdown that followed during the April-June quarter (Q2) reduced demand for residential real estate in Bangalore by more than 25%. . However, while demand has declined, prices have not declined. Prices continued to oscillate and rose 1% in April and June of this year, according to the report.
The report says the residential market has shown an increased preference for high-end properties – those costing over Rs 7,000 per square foot, holding a 39% market share in the second quarter of 2021, up from 36% in the first quarter. 2021. For high-end homes, the areas that have seen an increase in house prices are Rajaji Nagar, RMV Extension Stage 2, Haralur Road, JP Nagar Stage 6 and Konanakunte.
Overall, demand was mostly concentrated on 2 and 3 BHK dwellings, together contributing 88% of the total searches in the city. The 3BHK configuration dominated the residential market, accounting for about half of total consumer preference. “The 3BHK configuration dominates the residential market as it accounts for about half of total demand (consumer preference) even as 2BHK’s share has fallen by 4% QoQ in Q22021,” the report said.
The prices of ready-to-move properties saw a marginal 0.3% drop in prices between April and June of this year compared to the same period last year. According to the report, property buyers favored properties under construction and prices for those properties rose 2.9% in April-June compared to the January-March period of this year, and 3.1% per compared to April-June last year.
The PropIndex report also found that the inauguration of the Yelachenahalli Green Line metro service to Silk Institute in the first quarter of 2021 had increased demand for properties in the Rs 5,000-6,000 price range along Kanakapura. Road in the second quarter.
Demand for housing has been found to be concentrated in localities such as Whitefield, Sarjapur Road and Bellary Road, which the report says have consistently ranked among the best in terms of searches in recent quarters.
âUnlike the first wave, the recovery in demand for residential real estate was faster in the second wave. The residential markets of Bengaluru, Chennai, Thane, Noida-Greater Noida, Kolkata and Delhi saw price corrections ranging from 1% to 2.3% during the quarter, which also led to an increase in medical spending and the debt. Bengaluru is one of the few markets in the country where the premium segment continues to do well even during limited real estate activity, âsaid Sudhir Pai, CEO of Magicbricks.
For home buyers, he added that the programs offered by the developers can convert people (who may still be considering the option) into potential buyers. âDeveloper programs, such as flexible payment offers, lack of pre-EMI options, and low reservation amount, can potentially convert fence guards into potential buyers. In addition, state government assistance to property taxpayers during the foreclosure that extended a 5% property tax refund until June 30, generated positive sentiment in the city, âhe said. -he adds.