Bengaluru’s residential property market saw a pickup in sales momentum in the first quarter of 2019 as well as a decline in unsold stocks, suggesting that a recovery may be in sight by next year.
While the number of new launches saw a 96% jump compared to that in the corresponding period of 2018, sales increased 47%, according to real estate services firm JLL India.
“Property market in Bengaluru has been resilient as compared to other, bigger markets. In the next 12-18 months there will be genuine price appreciation, which will be demand-driven,” said Rahul Arora, managing director, Bengaluru at JLL India.
As per industry estimates, unsold stocks of more than 70,000 units were on the lower side compared to bigger property markets. Bengaluru-based Brigade Enterprises sold space aggregating to 0.96 million square feet during the quarter, with a total value of Rs 520 crore, up 23% from the year-ago period.
“Despite regulatory changes, we were able to increase sales through concentrated sales efforts. We believe FY20 will be another strong year of growth for us,” said MR Jaishankar, chairman, Brigade Enterprises. For real estate developer Sobha, Bengaluru was the strongest residential market, with sales up 24% during the three-month period, with the higher average realization of Rs 8,152 per sq ft.
“Bengaluru continues to lead from the front with the highest-ever new sales booking of 2.76 million sq ft during 2018-19, and 0.84 million sq ft during Q4 of FY19. This was achieved due to a positive response from new launches,” said JC Sharma, managing director of Sobha.
Puravankara saw strong demand for its premium affordable housing brand, Provident Housing. “In line with market trends, Provident Housing, which contributed 58% of sales by value in FY19, will be the accelerator for our business, and give it the ability to replicate year-on-year growth,” said Ashish R Puravankara, managing director, Puravankara Limited.
Industry executives said that policy reforms such as setting up of the real estate regulator and implementation of the goods and services tax had delayed the sector recovery. They said that for the growth momentum to be sustained, liquidity issues owing to non-banking financing crisis and banks not lending to the sector need to be addressed.
News Source: Economic Times, Url: https://bit.ly/2EELngz