An under-construction high-rise residential building.
Credit: Reuters Photo
Bengaluru: With its dominant residential realty market - East Bengaluru - seeing a 45 per cent drop quarter-on-quarter (QoQ) - Bengaluru as a whole reported a 1 per cent slip in new supply of housing property in the quarter ended September 30.
Remarkably, according to a research report by the property consultant ANAROCK, released on Friday, despite the decline East Bengaluru continues to outweigh the other parts of the city, accounting for 35% of the launches the city saw.
Though the 15,900 units launched made for the 1 per cent slip QoQ, it marked a 7 per cent year-on-year (YoY) increase. High-end residential properties accounted for 54 per cent of the city's new launches. Bengaluru also saw an 8 per cent drop in sales both QoQ and YoY, with nearly 15,025 units sold. The city’s total available inventory stands at approximately 46,300 units, representing a 2 per cent increase from Q2.
North and South Bengaluru accounted for 30 per cent (with 4,740 units) and 29 per cent (with 4,620 units) supply share, respectively, also reflecting a 40 per cent and 90 per cent increase respectively since Q2. West showed a massive jump QoQ, due a smaller base of just 40 units being launched in Q2 and 1,000 in Q3.
East Bengaluru saw a 18 per cent QoQ drop while still accounting for 48 per cent of the total sales in the city. North Bengaluru had a 26 per cent sales share and also contracted by 6 per cent QoQ. Meanwhile, West Bengaluru saw a 33 per cent QoQ increase while South Bengaluru saw a 13 per cent QoQ rise in sales and had a 21% share.
Explaining the decline, Prashant Thakur, Regional Director and Head, Research, ANAROCK Group, told DH, “East has always remained the dominant market and will continue to do so in future as well. Given that ample new supply already exists in this market, the drop in new supply was expected. One quarter sales decline cannot be seen as a precedent for future sales.”
He further explained, “Mostly, West Bengaluru sees very limited new supply launched in the market as it is mostly developed and hence, limited sales also happen in the primary market here.”