A sneak peek into Residential Report H1 2016
The real estate residential market in Bengaluru was reluctant to show any progress in the times preceding 2016. It hasn’t revived either in the first half of 2016, it has witnessed a dip in its absorption trend and reached an all-time low Sales Velocity of 1.02%, i.e. a 7.7% decline in the first half of 2016 in comparison to 2015’s second half.
As a negative result of the declining Sales Velocity, Months Inventory is at its highest in the first half of 2016 when compared to the periods following December 2012. An increase of 6.3% is noticed in the Months Inventory of the first half of 2016 when compared to the second half of 2015. The average time required to sell the existing primary residential stock has increased from 31 months in H2 2015 to 33.07 months in H1 2016.
As an outcome of declining Sales Velocity and ever increasing Months Inventory levels, the Average Capital Value of residential development across Bengaluru would have decreased, as a layman would analyze. The truth remains that the average Capital Value remains unchanged in H1 2016 as it remains the same in H2 2015, i.e. INR 5334 per sq. ft.
Bengaluru’s residential market had a net addition of 18,129 units in H1 2016 across developments. This net addition is 40% lower when compared to the net addition of H2 2015, which stood at 29,920 units. Considering the net addition, the total inventory in H1 2016 stood at 125,738 units across developments out of which the incremental sale of 20,169 units (16% of inventory) took place in H1 2016. Incremental Sales in H1 2016 has declined by 17% in comparison to H2 2015.
Apartment development accounts to 81% of incremental sales, whereas Plot, Villa and Row House development sums up to 15.1%, 3.5% and 0.1% respectively of incremental sales in H1 2016.
Apartment development in Bengaluru has a total residential development spread of 399.1 Mn sq. ft. of which unsold inventory stood at 133.1 Mn sq. ft. valuing INR 72,250 crores. The size of unsold inventory of Plot, Villa and Row House stood at 21.8, 17 and 1.5 Mn sq. ft. respectively in H1 2016.
Residential development in its various development forms is spread across Bengaluru- North to South and East to West. The quadrant which witnessed the largest addition to its already existing inventory in H1 2016 is the North-East quadrant. 8,127 units were added to its already existing stock. Also the North-East quadrant performed better than its counterparts in H1 2016 at an incremental sales of 7,569 units i.e. 16.5% sales from the total inventory available. The South-East quadrant follows the North-East quadrant both in terms of large net addition of 7,631 units in H1 2016 and a total incremental sale of 14.7%.
ASEAN Macroeconomic Trends_Indonesia’s Economic Growth for 3Q Remained Buoyan...Kyna Tsai
During the period of 1–15 November, Indonesia reported its economic growth rate (real GDP growth rate) for 3Q at 5.1%, levelling off from the 5.0% for 2Q. The central banks of Thailand, Malaysia, and the Philippines decided to maintain their policy interest rates at their respective monetary policy meetings. Retail sales in Singapore were affected by seasonal factors and showed negative growth for the first time in seven months. For more information, refer to the list of macroeconomic indices released over 1–15 November at the end of this report.
Raptivity has conducted a webinar on solving education's toughest challenge: learner engagement, shown how to take your content from flat to interactive in no time and engage your learners like never before!
Highlights of the webinar:
- Overview of the challenges that educators face
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- Introduction to Raptivity and its exemplary library of interactivities
- Demo of Raptivity and Raptivity Linker along with some interesting samples
Where is the action in action research presentation in san diegoDoctoralNet Limited
Presented at SOLES conference in San Diego this was the first in a series of presentations deliverd as the meta-analysis on published action research developed.
ASEAN Macroeconomic Trends_Indonesia’s Economic Growth for 3Q Remained Buoyan...Kyna Tsai
During the period of 1–15 November, Indonesia reported its economic growth rate (real GDP growth rate) for 3Q at 5.1%, levelling off from the 5.0% for 2Q. The central banks of Thailand, Malaysia, and the Philippines decided to maintain their policy interest rates at their respective monetary policy meetings. Retail sales in Singapore were affected by seasonal factors and showed negative growth for the first time in seven months. For more information, refer to the list of macroeconomic indices released over 1–15 November at the end of this report.
Raptivity has conducted a webinar on solving education's toughest challenge: learner engagement, shown how to take your content from flat to interactive in no time and engage your learners like never before!
Highlights of the webinar:
- Overview of the challenges that educators face
- Interactivity as the solution to the educators' challenges
- Introduction to Raptivity and its exemplary library of interactivities
- Demo of Raptivity and Raptivity Linker along with some interesting samples
Where is the action in action research presentation in san diegoDoctoralNet Limited
Presented at SOLES conference in San Diego this was the first in a series of presentations deliverd as the meta-analysis on published action research developed.
Bangalore Residential Real Estate Research Report (Non Subscriber) Q1 2014Idirees Chenakkal
This is our latest research report on Bangalore Residential Market. It details more than 900 ongoing residential projects across the city.
Here you have the Macro level Analysis of its supply and absorption.
for the complete report you can subscribe
contact : research@ljh.in
Impact of RERA on consumer buying behaviour summer project complete(1)Ajay Singh
As we know real estate (regulation and development) Act 2016 has been passed. Real Estate Regulatory Authority came into this act from May 2017 in Maharashtra
This survey was conducted on a sample size of 201 people who stay in Mumbai and are searching house in Mumbai . The main objective of this survey was to know the consumer buying behavior while buying real estate property. This research has been performed in Mumbai after the implementation of RERA so we can know the impact of RERA on consumer buying behaviour.
In this power point presentation i am discussing about the fundamental and technical analysis done by an investor before making investment in any company.
Data Analysis on Home Loan Dataset using PythonShreyas Sinha
This is the complete report which showcases the Data Analysis dome on the Home Loan Dataset. It holds within itself all the aspects right from recent details on the Home Loan market, benefits for the buyers, government policies, univariate, bivariate, linear regression and logistic regression.
Then with the help of statistical analysis I was able to derive insights all of which are again written down in a simple and a chronological order.
Finally after having referred the journals, research papers & the recent news, I have presented the recommendations i.e to be implemented by the Bank so as to increase the sales and the maximize on the growth opportunities that were discovered by the study.
Summary of July -2017 Residential Research Report for Bengaluru Idirees Chenakkal
Research Report – The inside story
Redwoods Research’s Mid-Year Residential Research Report for 2017 released in the month of July is a compilation of the general residential market in Bengaluru, and particularly the Supply and Demand scenario to give the reader a better understanding of the same. This report comprehends a cohesive research by the Redwoods team of Research analysts and experts where an intensive on-field thorough research by tracking trends from over 1,496 primary Bengaluru’s residential projects was conducted.
Fundamental figures
Bangalore residential market witnessed a slight escalation in its Weighted Average Capital Value by 2.3% from INR 5,314 per Sq. ft. to INR 5,437 per Sq. ft.
The Bangalore residential market would require 39 Months to offload its Unsold Inventory.
Category wise highlights
Sales Velocity of Residential Apartments and Plots dropped by -16.5% and -24.4% respectively, whereas the Row houses and Villa Developments observed a slight increase in its Sales Velocity by 1% and 09% respectively.
Months Inventory for apartment and plot recorded at 40 and 30 Months respectively.
To know more, contact Mr. Idirees Chenakkal
In this presentation we discus about the impact of Rera ON INDIAN real estate, the law under the RERA as per the Central government, how to register complaint under RERA etc
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
Green Homes, Islamabad Presentation .pdfticktoktips
Green Homes Islamabad offers beautifully designed 5, 8, and 10 Marla homes near the airport and motorway. Enjoy luxury, convenience, and high rental returns in a prime location.
Referans Bahcesehir which is being constructed, in the center of the most regional destination as Bahçeşehir, shines out with its central location and unique landscape including social facilities such as a fitness center, sauna, sports facilities, children’s playground and recreational areas.
Not only drawing attention for immediate surroundings including commercial centers and private schools but also providing the easily accessible location with closeness to Tem Highway and connection roads, ongoing construction of 3rd Bridge Connection roads and Metro Projects
Bahcesehir is a rising value in the great city of Istanbul… Located at a new transportation junction in the northwest of the City… Located at such a spot that the access roads for the 3rd bridge and for the 3rd Airport will reach the region in 2016. The Marmaray and the Subway will extend all the way to Referans Bahcesehir respectively in 2018 and 2019.
465 flats and 34 stores are designed with an outstanding approach and arranged with a unique perspective offering the following options: 1 plus 1, 2 plus 1, 3 plus 1, 3.5 plus 1, 4 plus 1, and 4.5 plus 1. It is planned so as to safeguard you and your loved ones based upon a modern, technological safety approach. As you experience the joy and luxury here, you will be content and feet at ease.
It is worth seeing both inside and outside with heart-warming cafes, tasty restaurants and elegant stores… And it is ready to offer a vivacious social life with a warm and cozy space design.
A folding swimming pool and indoor swimming pools, playgrounds, Turkish bath, sauna… It has them all. Everything you need for your well-being and for having a pleasant time will be at your service. You simply need to align the rhythm of life with the rhythm of Referans Bahcesehir.
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Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
Brigade Insignia offers meticulously designed apartments with modern architecture and premium finishes. The project features spacious 3,3.5,4 and 5 BHK units, each thoughtfully planned to provide maximum comfort, natural light, and ventilation.
https://www.newprojectbangalore.com/brigade-insignia-yelahanka-bangalore.html
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
Simpolo Tiles & Bathware
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Since the first steps were taken in 1977, Simpolo Ceramics has carved its niche as a consistently growing organisation with unparalleled innovation and passion rooted in simplicity.
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Vinra Construction is a private limited company registered under the ROC. The management has an experience of over 15 years of understanding the needs and delivering apt solutions to the end users We are providing turnkey solutions in construction fields. like Construction, Interior Designing Facility Management, Plantation Management, etc..
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Flat available for sale
Location- Tupudana, Ranchi
Savitri enclave
Area- 3BHK
Rate- 4000/sq.ft.
Super Build Up Area-1629 sq.ft.
Build-up area-1253 sq.ft.
Rate- 65lakh16k(approx)
Floor available- Flat available in all floor(G+12)
Balcony- 2
Washroom- 2
Parking - CAR PARKING
Amenities- Joggers track,temple, children's park,gym,banquet hall (5 Lakh)
Possession year (Handover year)- Dec 2025
Outside View from the apartment and flat balcony is very beautiful.
For more information contact AASHIYANA STAR PROPERTIES
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The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
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Dear Reader,
Welcome to LJ Hooker India’s mid-year research report for 2016. This report is compiled to
give the reader an understanding of the general residential market in Bengaluru, particularly
the Supply and Demand scenario of the residential market. The report contains an integrated
research by the LJ Hooker India team, tracking sales from over 1,574 primary Bengaluru’s
residential projects.
The report covers all the significant projects located in various micro-markets across the city,
but the data analysis does not represent the entire Bengaluru residential market. The data
has thrown light on the trends of the Supply, Demand and rates in the residential sector of
the city over the last 6 months.
Part One comprises of the general economic conditions and how they may affect the
Bengaluru Residential Real Estate market.
Part Two of the report analyses data from over 1,574 primary residential projects
across Bengaluru.
Part Three comprises of an analysis based on the buyer behaviour and each ones
interest shown in the city’s residential market based on their preferences.
Part Four of the report comprises of a detailed list of over 1,209 ready/ongoing
residential projects across the city.
We hope you would find this report to be of your interest and would be happy to give us a
feedback. Please feel free to contact the LJ Hooker team for any clarifications.
Kind Regards,
Anuj Nautiyal
THIS REPORT CONTAINS FOUR SEPARATE AND DISTINCT SECTIONS FOR REVIEW:
1. Macro-economic review and predictions
2. Snapshot statistical report of the Bengaluru residential market
3. Analysis on Buyer Behavior
4. Primary project by project source data
IMPORTANT NOTES -TO BE READ IN CONJUNCTION WITH THIS REPORT
This report is compiled from primary data sourced by the in-house LJ Hooker research team from developers,
prospective customers as well as general market information and previously published works (check footnotes).
LJ Hooker do not make any claim as to the completeness or accuracy of this information or comments provided, and
this information should not be used by third parties or relied upon when making financial decisions. The reader should
at all times rely on their own independent research and information, and use this report as a guide only.
LJ Hooker has taken due care in the collection of the data, however, LJ Hooker does not warranty the correctness of the
information provided in this presentation.
The presentation is available only on an "as is” basis and without any warranties expressed or implied. LJ Hooker
disclaims all warranties including any implied warranty of merchantability and fitness for any purpose.
Without prejudice to the above, LJ Hooker will not be liable for any damages of any kind arising from the use of this
presentation, including, but not limited to direct, indirect, incidental, punitive, special, consequential and/or exemplary
damages including but not limited to damages for loss or profit goodwill resulting from:
The incorrectness and/or inaccuracy of the information
Any action taken, proceeding initiated, transaction entered into on the basis of the information available in this
presentation
If you believe there are any omissions or inaccuracies in the report we would request you to write to research@ljh.in.
4. 4 | P a g e
TABLE OF CONTENTS
1 PART – I MACRO ECONOMIC REVIEW AND PREDICTIONS..............................................................5
1.1 EXECUTIVE SUMMARY – MACRO MARKET CONDITIONS .......................................................5
1.1.1 INTRODUCTION...............................................................................................................5
1.1.2 GOVERNMENT POLICIES .................................................................................................5
1.1.3 THE ANTI-DISCRIMINATION PROVISION OF RERA ..........................................................6
1.1.4 LAKE ENCROACHMENT RULING......................................................................................6
1.1.5 CENTRE’S OWN REALTY PORTAL.....................................................................................6
1.2 PREDICTION FOR THE BANGALORE RESIDENTIAL MARKET....................................................7
1.2.1 GENERAL COMMENT ......................................................................................................7
1.2.2 PREDICTION FOR THE 2nd
HALF OF 2016.........................................................................8
2 PART – II STATISTICAL REPORT ON BENGALURU RESIDENTIAL MARKET........................................9
2.1 EXECUTIVE SUMMARY ............................................................................................................9
2.2 BENGALURU PRIMARY RESIDENTIAL MARKET – MACRO ANALYSIS.....................................11
2.2.1 KEY INDICATORS............................................................................................................11
2.2.2 KEY AVERAGES ..............................................................................................................12
2.2.3 DEVELOPMENT WISE PRICE TREND ..............................................................................12
2.2.4 DEVELOPMENT WISE PERFORMANCE INDICATORS .....................................................13
2.2.5 REGION WISE PRICE TREND ..........................................................................................14
2.2.6 REGION WISE PERFORMANCE INDICATORS .................................................................14
2.2.7 INVENTORY MOVEMENT ..............................................................................................15
2.2.8 A COMPARISON ON THE INVENTORY MOVEMENT ......................................................17
2.2.9 RESIDENTIAL MARKET DYNAMICS ................................................................................18
3 PART - III ANALYSIS ON BUYER BEHAVIOUR...................................................................20
3.1 PREFERRED DEVELOPMENT TYPE .........................................................................................20
3.2 REASON FOR PURCHASING/BUYING.....................................................................................20
4 PART- IV PRIMARY PROJECT SOURCE DATA....................................................................21
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1 PART – I MACRO ECONOMIC REVIEW AND PREDICTIONS
1.1 EXECUTIVE SUMMARY – MACRO MARKET CONDITIONS
1.1.1 INTRODUCTION
The Indian economy expanded 7.9 percent year-on-year in the first three months of 2016, higher than
its previous quarter and better market expectations of a 7.5 percent increase. Several sectors
witnessed an annual growth rate higher than 7 percent, including the real estate services sector which
witnessed the highest growth of 10.3 percent.
Supply and demand in India’s residential property market have, in recent years, been disparate. Major
cities in India already have a large supply with high prices. Since there has been no price correction
and demand is low, the high inventory levels have limited the liquidity which has negatively impacted
new launches.
With the recent government policies, we see more favorable conditions in the real estate sector as
the trends are beginning to change basic expectations of improving regulatory environment. Initiatives
like housing for all by 2022 and smart cities are influencing the real estate sector positively.
1.1.2 GOVERNMENT POLICIES
The Real Estate (Regulation and Development) Act, 2016
The Real Estate (Regulation and Development) Act, 2016 aims to regulate the real estate sector,
bringing clarity to buyer and seller. Reform to this sector came into force on May 1, 2016 with 69 out
of 90 sections notified by Ministry of Housing and Urban Poverty Alleviation. The guidelines for
implementing the provisions from the act are to be formulated by the Centre and respective state
governments within 6 months, i.e., October 31 this year.
The Act is a positive change in terms of,
Increasing transparency in the real-estate sector.
Increasing accountability of the promoters and developers and establishing efficient forums
for grievance redress.
It will consequentially lead to lower litigation due to stringent rules and regulations in the
highly unstable sector.
Time bound approvals and transparency will also lead to greater flow of investment both
domestic and foreign leading to reduction in cost of borrowing in the real-estate sector.
NEW ADDITION TO THE REAL ESTATE ACT
Errant developers can avoid jail by paying 10% of estimated project cost.
Property dealers can avoid jail by paying 10% of the plot or apartment’s cost.
Builders and property dealers have to comply with the regulator/appellate tribunals’ orders
within 30 days.
State Bank of India’s prime lending rate plus 2% to form basis for delay payment interest
rate for builder-buyer.
Developer to update project website every quarter.
Projects without completion certificate will have to register with regulatory authority.
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50% of the investors' investment has to be deposited into an escrow account that would be
used only for the construction of the same project.
Promoters are not allowed to advertise, market, book, sell, or offer for sale any
plot/apartment/building before registering the project with Real Estate Regulatory Authority
(RERA).
1.1.3 THE ANTI-DISCRIMINATION PROVISION OF RERA
The Centre is set to introduce an anti-discriminatory clause in rules under the Real Estate Act to curb
the practice of builders refusing to sell their apartments based on a buyer’s religion, marital status or
dietary preferences.
The anti-discrimination clause will provide recourse to buyers who are denied a house by builders
owing to their caste, ethnic origin, gender, sexual orientation, dietary choices or any such factors.
Once the rules are notified, those affected can approach the state-level regulatory authority, followed
by the appellate tribunal.
Under the RERA, builders failing to adhere to the tribunal’s orders are liable to face imprisonment of
up to three years and/or a monetary fine, according to the legislation.
The anti-discrimination provision of RERA will be applicable only to builders trying to sell their
properties, but not landlords wanting to rent out houses. However, the Ministry of Housing and Urban
Poverty Alleviation (MHUPA) will introduce a similar clause in the Draft National Urban Rental Housing
Policy to keep a check on discrimination against people looking for accommodation on rent.
The act allows a regulatory authority to be set up in every state and a tribunal to oversee all the deals
and transactions between buyers and sellers to protect the interests of property buyers and provide
transparency in the sector.
1.1.4 LAKE ENCROACHMENT RULING
The recent ruling by the National Green Tribunal (NGT) that increased the no-construction zone
around water bodies in Bengaluru has left property developers fuming even as environmentalists
described it as long overdue.
The NGT has increased the no-construction zone around lakes in Bengaluru to 75 meters from existing
30 meters measured from the edge of the water body. For primary drains, it's changed to 50 meters
from the edge, rather than the center.
As per NGT’s assessment, the ruling is absolutely essential for the purposes of sustainable
development, particularly keeping in mind the ecology and environment of the areas in question. The
ruling has left the realtors furious, however the matter is now with the Supreme Court for the final
verdict. Clarity is awaited to declare the rule for retrospective or new projects only.
1.1.5 CENTRE’S OWN REALTY PORTAL
The government is all set to launch its own realty portal, initially with about 50,000 residential
properties that one can bid for online. These are properties that Debt Recovery Tribunals (DRTs) have
allowed banks to sell through auction after their owners defaulted on loan repayment. The
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government portal, which is yet to go live will provide details such as the pictures and floor area of
the properties and allow anyone to bid directly after electronically making the earnest.
The purpose of setting up a portal and holding electronic auctions is to make the process fair and
transparent where even general public is able participate in such auctions. With the help of such a
realty auction portal and new debt-recovery regulations in place, more assets pledged by defaulting
borrowers are expected to come to the market.
1.2 PREDICTION FOR THE BANGALORE RESIDENTIAL MARKET
1.2.1 GENERAL COMMENT
Bengaluru’s Residential market is going through a correction stage where price has come down and
remained stagnated in the last period. The absorption rate and new launches volume has also
drastically declined. Despite developers offering discounts and freebies, buyers are delaying their
buying decision due to various choices and the economic conditions.
A new trend has been observed in the market, where the small sized developers are either tying up
with their larger counterparts or completely selling their stake in the development to the larger
developers. This trend has emerged as an outcome of shortage of funds and inefficiency in execution
of the projects. Such situations where the projects are stuck midway and the possessions are delayed
gives a tough time to both developers and end users. Therefore the big banner developers come to
the rescue of the struggling developers stuck with projects, which eventually would bring relief to the
property buyers.
The poor performance of real estate sector is not limited to the sale of an apartment; it has adversely
affected the rental market too. The rental value of properties in the city has been compromised to an
extent of 50%. The major reason being availability of large number of options. Ageing properties are
yielding low rentals for its owners whereas newer developments with better amenities are attracting
the crowd.
The demand for office space in Bengaluru was seen majorly in locations like CBD, Sarjapur road and
across the Outer Ring Road. The location preference towards office space is now slowly moving from
the above mentioned locations towards the North of the city. Also the city’s commercial/office space
has seen a sharp increase in its rental yield over the last one year. The rental value has increased to
an extent of 50% over the year. Currently about 10-14 Mn sq. ft. of office space is under construction
in the city.
8. 8 | P a g e
1.2.2 PREDICTION FOR THE 2nd
HALF OF 2016
As far as the Commercial/office market is concerned, industry expert says that during the first six
months 2016 (till June), Bengaluru has witnessed 6 Mn sq. ft. of Grade-A office space absorption,
better than other cities in India. The average vacancy rate of commercial development across India is
found to be approximately 8%, whereas the vacancy rate in Bengaluru, approximately at 3.5 - 4%. This
will help the stake holders to be more confident in the market and eventually the market will revive
with a healthy residential demand and supply.
Due to various government policies, most of the builders are delaying their new launches. They are
more focused on selling the piling unsold inventory, further price correction seems to be impossible
for most of the builders as the cost of raw material and other management expenses are either at par
to the selling price or the profit margin is at its lowest rate.
Residential market will see better absorption in the affordable houses segment in this market
condition. Right product at the lower price will see the momentum since affordability is what people
are more concerned about.
These correction phases are inevitable to the industry to form a balance in the supply and demand,
and at the same time it will definitely help the buyers choose the right product considering it a buyer’s
market.
One of the major reasons for decline in sales is the increase in price caused due to the revised guidance
value. The rise in guidance values of residential and commercial properties across the city has
dismayed both real estate developers who are already facing a slump in demand and the buyers by
making the property more expensive.
9. 9 | P a g e
2 PART – II STATISTICAL REPORT ON BENGALURU RESIDENTIAL
MARKET
2.1 EXECUTIVE SUMMARY
KEY FIGURES
The real estate residential market in Bengaluru witnessed a dip in its absorption trend and
reached an all-time low Sales Velocity of 1.02%, i.e. a 7.7% decline in the first half of 2016 in
comparison to previous year-end.
The average Capital Value remains unchanged to the limit of INR 5,334 per sq. ft. in the first
half of 2016.
Apartment development witnessed 49.7% dip in the size of new launches in H1 2016 from
the second half of 2015 (H2 2015).
The total unsold residential stock in Bengaluru is valued at INR 88,258 crore.
Months Inventory reached to 33.07 months, it is at its highest in the first half of 2016 when
compared to the periods following December 2012.
The average price of the newly launched Apartment has decreased from INR 4,998 per sq. ft.
in H2 2015 to INR 4,799 per sq. ft. in H1 2016.
SUPPLEMENTARY FACTS
The residential development observed a net addition of 18,129 units in the first half of 2016,
which is more than half of the net addition in the second half of 2015 (29,920 units).
The incremental sales amounts to 16% of the total inventory available for sale. Only 20,169
units were sold from the overall 125,738 units offered for sale. The closing stock of H1 2016
stands at 105,569 units.
The Apartment development has witnessed a 3.8% decrease in its average ticket size;
Villa development has decreased by 1.7%;
Row House development has increased by 1.2% in the H1 2016.
Prices of few residential developments have appreciated in the first half of 2016 marginally,
whereas others have depreciated in value. Apartment, Plot and Row House development are
at the appreciating end at an increased level of 0.12%, 1.54% and 1.12% respectively,
whereas Villa development has come down on its value to 0.1%.
H1 2016 has witnessed the lowest Sales Velocity in years. Plotted development which had
the highest Sales Velocity of 1.36% in the H2 2015 has come down to 1.27% in the H1 2016
Apartment, Villa and Row House development have low Sales Velocity of 1.03%, 0.79% and
0.33% respectively, which is lower than the H2 2015.
Apartment and Villa development has high Months Inventory of 32.5 and 42.2 months
respectively.
There has been a 39.4% decline in the new addition level in H1 2016, whereas the
incremental sales and inventory levels have declined to the extent of 17% and 4.7%
respectively from H2 2015.
10. 10 | P a g e
REGIONAL NUMBERS
Valued at INR 31,917 crore, North-East region has the highest value of unsold inventory in
town. South-East follows at a value of INR 28,893 crore of unsold inventory.
North-East region had the largest net addition of 8,127 units in H1 2016. South-East region
follows North-East region with a net addition of 7,631 units in H1 2016.
With high level of net additions, North-East and South-East regions have higher incremental
sales of 7,569 units and 7,164 units respectively.
North-West has appreciated by 1.1% in its average Capital Value, whereas North-East has
appreciated by mere 0.1%.
There has been a drastic drop in the Sales Velocity of the North-West region. It has come down
to 0.88% in H1 2016 from 1.42% in H2 2015.
North-East, South-West, South-East and Central Bengaluru regions have low Sales Velocity of
1.06%, 1.05%, 1.01% and 0.96% respectively. On an average, the overall Sales Velocity has
come down to 1.02% in H1 2016 from 1.12% in H2 2015.
The Months Inventory level has been on the highest side at 33.07 months, which is a 6.3%
increase from H2 2015. Except for the South-West region, the Months Inventory level of all
other regions have increased.
There has been a minimalistic change in the price across the residential spread in H1 2016.
The price of residential development in the South-West has increased the most to 1.3% from
the H2 2015 whereas the Central region price has decreased by 1.9%.
AFFORDABILITY PATTERN
Budget homes holding the largest opening stock of 37,834 units has a large net addition of
14,681 units. The incremental sales in this category stand at 16% of its total inventory.
The net addition in the Mid-Range Homes category has come down to 5,911 units in the H1
2016 from 7,966 units in H2 2015.
Maximum supply of units have been mapped in Budget homes category. A total of 137,825
units have been tabulated in this segment measuring about 181.9 Mn sq. ft. The total supply
has however increased from 125,999 units in the H2 2015.
The unsold inventory of the premium homes category is valued at INR 31,732 crore for
20,223 units of unsold stock.
BUYER PREFERENCES
More than 71% people prefer to buy their home for self-occupation. Around 29% people
prefer to buy Real Estate for an investment purpose.
2 BHK and 3 BHK homes are most preferred by home buyers to the extent of 65% and 31%
respectively.
With 35% of preference expressed, prospective buyers in Bengaluru are more inclined
towards the South region.
Around 25% chose a budget between INR 30-50 lakhs. Next on chart is budget between INR
50-70 lakhs with 18% of preference. For 9%, budget was INR 70-90 lakhs, whereas a budget
of over INR 150 lakhs was preferred by 28% home buyers.
Whitefield ranked the most preferred location in the home buyers’ preference study.
Electronics City and Sarjapur road stands at 2nd
and 3rd
place.
11. 11 | P a g e
2.2 BENGALURU PRIMARY RESIDENTIAL MARKET – MACRO ANALYSIS
The real estate residential market in Bengaluru witnessed a dip in its absorption
trend and reached an all-time low Sales Velocity of 1.02%, i.e. a 7.7% decline in
H1 2016 in comparison to previous year end.
The average Capital Value remains unchanged to the limit of INR 5,334 per sq.
ft. in H1 2016.
2.2.1 KEY INDICATORS
Year Sales Velocity Months Inventory Average Price Per sq. ft.
Dec-12 3% 12 4,702
Jul-13 4.2% (45.9%) 9(-26%) 4,753(1%)
Jan-14 2.2% (-49.1%) 16(85%) 4,936(4%)
Jul-14 2.3% (5.2%) 15(-6%) 5,030(2%)
Jan-15 2.2% (-3%) 16(9%) 4,866(-3%)
Jul-15 1.6% (-27.3%) 22(33%) 5,261(8%)
Jan-16 1.12% (-30 %) 31 (40.9%) 5,333 (1.4%)
Jul-16 1.02% (-7.7%) 33.07 (6.3%) 5,334 (0.02%)
Months Inventory is at its highest in the first half of 2016 when compared to
the periods following December 2012. An increase of 6.3% is noticed in H1 2016
of the Months Inventory when compared to the H2 2015.
The increased level of Months Inventory is attributed to the low Sales Velocity
of 1.02%, which is an all-time low since December 2012.
4,702 4,753
4,936 5,030
4,866
5,261 5,333 5,334
0%
1%
2%
3%
4%
5%
6%
0
5
10
15
20
25
30
35
Dec-12
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Juy-16
Months Inventory Sales Velocity Average Price Psf
12. 12 | P a g e
2.2.2 KEY AVERAGES
Type
Average Ticket Size in lakhs (INR) Average Size
Jan-15 Jul-15 Jan-16 Jul-16 Jan-15 Jul-15 Jan-16 Jul-16
Apartment 90 (4%) 103 (15%) 106(2.9%) 102(-3.8%) 1,609 (-2%) 1,655 (3%) 1,657(0.1%) 1,640(-1%)
Row House 183 (5%) 212 (16%) 226(6.6%) 228(1.2%) 2,971 (1%) 3,067 (3%) 3,107(1.3%) 3,107(0%)
Villa 213 (-4%) 226 (6%) 233(3.1%) 229(-1.7%) 3,266 (-5%) 3,230 (-1%) 3,287(1.8%) 3,242(-1.4%)
The Apartment development has witnessed a 3.8% decrease in its average
ticket size, whereas the Villa development has decreased by 1.7%. The average
ticket size of Row House development has increased by 1.2% in H1 2016.
A marginal decline in the average size of Apartment and Villa development has
been witnessed across Bengaluru. The Villa development size has decreased by
1.4%, whereas the Apartment development has decreased by 1% and Row
House development remains unchanged in H1 2016.
2.2.3 DEVELOPMENT WISE PRICE TREND
Year Apartment Plot Row House Villa
Dec-12 4,432 1,307 5,200 5,652
Jul-13 4,549 (2.6%) 1,290 (-1.3%) 5,595 (7.6%) 6,036 (6.8%)
Jan-14 4,695 (3.2%) 1,461 (13.2%) 5,856 (4.7%) 6,681 (10.7%)
Jul-14 4,821 (2.7%) 1,682 (15.2%) 6,096 (4.1%) 6,508 (-2.6%)
Jan-15 4,677 (-3%) 1,659 (-1.3%) 6,018 (-1.3%) 6,329 (-2.8%)
Jul-15 5,099 (9%) 1,951 (17.6%) 6,551 (8.8%) 6,409 (1.3%)
Jan-16 5,175 (1.5%) 1,835 (-5.9%) 6,913 (5.5%) 6,349 (-0.9%)
July-16 5,181 (0.12%) 1,863 (1.54%) 6,991 (1.12%) 6,342 (-0.10%)
Prices of few residential developments have appreciated in the first half of
2016 marginally, whereas others have depreciated in value. Apartment, Plot
and Row House development are at the appreciating end at an increased level
of 0.12%, 1.54% and 1.12% respectively, whereas Villa development has come
down on its value at a level of 0.1%.
4,432
4,549 4,695 4,821 4,677 5,099
5,175 5181
1,307 1,290 1,461 1,682 1,659 1,951 1,835 1863
5,200
5,595
5,856 6,096 6,018 6,551
6,913 6991
5,652
6,036
6,681 6,508 6,329 6,409
6,349 6,342
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
Dec-12 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Apartment Plot Row House Villa
13. 13 | P a g e
2.2.4 DEVELOPMENT WISE PERFORMANCE INDICATORS
2.2.4.1 DEVELOPMENT WISE SALES VELOCITY
Year Apartment Plot Row House Villa
Dec-12 2.79% 5.69% 3.07% 4.02%
Jul-13 4.26% 5.31% 5.35% 3.65%
Jan-14 2.16% 1.27% 2.41% 2.01%
Jul-14 2.29% 1.37% 2.97% 1.67%
Jan-15 2.22% 2.16% 1.20% 1.83%
Jul-15 1.60% 2.30% 1.48% 1.54%
Jan-16 1.11% 1.36% 0.74% 1.28%
Jul-16 1.03% 1.27% 0.33% 0.79%
H1 2016 has witnessed the lowest Sales Velocity in years. Plotted
development which had the highest Sales Velocity of 1.36% in H2 2015 has
come down to 1.27% in H1 2016.
Apartment, Villa and Row House development also has low Sales Velocity of
1.03%, 0.79% and 0.33% respectively, which is lower than the H2 2015.
2.2.4.2 DEVELOPMENT WISE MONTHS INVENTORY
Year Apartment Plot Row House Villa
Dec-12 11.6 4.1 16.1 12.3
Jul-13 8.3 3.7 7.0 12.5
Jan-14 15.7 14.0 12.2 20.3
Jul-14 14.7 14.7 9.4 22.5
Jan-15 16.2 11.4 25.6 19.8
Jul-15 21.7 11.5 20.5 22.6
Jan-16 31.2 17.3 42.0 28.6
Jul-16 32.5 17.2 86.1 42.2
Due to the large supply, higher price and low Sales Velocity, the Months
Inventory is at its peak. The average Months Inventory level in H1 2016 stands
at 33.07 months.
Apartment and Villa development has high Months Inventory of 32.5 and
42.2 months respectively. Being priced higher, the Row House development
0.0%
1.0%
2.0%
3.0%
4.0%
Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Sales Velocity
Apartment Plot
Row House Villa
0
20
40
60
80
100
Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Months Inventory
Apartment Plot Row House Villa
14. 14 | P a g e
has the highest Months Inventory of 86.1 months. Plotted development has
bettered in H1 2016 with 17.2 Months Inventory level.
2.2.5 REGION WISE PRICE TREND
Year Central North East North West South East South West
Dec-12 14,600 4,560 3,949 3,365 3,652
Jul-13 15,383 (5.4%) 4,636 (1.7%) 4,422 (12%) 3,913 (16.3%) 4,055 (11%)
Jan-14 15,914 (3.5%) 4,888 (5.4%) 4,778 (8%) 4,161 (6.3%) 4,228 (4.3%)
Jul-14 14,013 (-11.9%) 4,886 (0%) 5,168 (8.2%) 4,221 (1.4%) 4,408 (4.3%)
Jan-15 12,438 (-11.2%) 4,694 (-3.9%) 4,831 (-6.5%) 4,123 (-2.3%) 4,305 (-2.4%)
Jul-15 13,466 (8.3%) 5,100 (8.7%) 5,344 (10.6%) 4,409 (6.9%) 4,651 (8.0%)
Jan-16 13,822 (2.6%) 5,263 (3.2%) 5,567 (4.2%) 4,472 (1.4%) 4,786 (2.9%)
July-16 13,560 (-1.9%) 5,271 (0.1%) 5,627 (1.1%) 4,457(-0.3%) 4,846(1.3%)
*Plots are not considered while tabulating
There has been a minimalistic change in the price across the residential spread
in H1 2016. The price of residential development in the South-West has
increased the most to the extent of 1.3% from H2 2015 whereas the Central
regions price has decreased by 1.9%.
North-West has appreciated by 1.1%, whereas North-East has appreciated by
mere 0.1%.
2.2.6 REGION WISE PERFORMANCE INDICATORS
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Region Wise Sales Velocity
Central North East
North West South East
South West
0
10
20
30
40
50
60
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
Region Wise Months Inventory
Central North East North West
South East South West
15. 15 | P a g e
2.2.6.1 REGION WISE SALES VELOCITY
Year Central North East North West South East South West
Jul-13 1.73% 4.29% 5.18% 3.85% 4.24%
Jan-14 1.45% 2.12% 1.75% 2.13% 2.81%
Jul-14 3.62% 2.28% 1.51% 2.23% 2.74%
Jan-15 1.91% 2.56% 1.94% 2.02% 2.10%
Jul-15 1.09% 1.51% 1.24% 1.80% 1.60%
Jan-16 1.18% 1.22% 1.42% 1.06% 0.76%
Jul-16 0.96% 1.06% 0.88% 1.01% 1.05%
There has been a drastic drop in the sales velocity of the North-West region.
It has come down to 0.88% in the H1 2016 from 1.42% in the H2 2015.
North-East, South-West, South-East and Central Bengaluru regions have low
Sales Velocity of 1.06%, 1.05%, 1.01% and 0.96% respectively. On an
average, the overall Sales Velocity has come down to 1.02% in H1 2016 from
1.12% earlier.
2.2.6.2 REGION WISE MONTHS INVENTORY
Year Central North East North West South East South West
Jul-13 14.1 8.8 7.1 9.1 10.4
Jan-14 16.5 15.6 18.2 17.5 12.7
Jul-14 9.3 15.3 24.6 15.0 14.1
Jan-15 23.1 14.0 17.7 17.0 19.9
Jul-15 37.3 24.6 25.1 17.3 25.8
Jan-16 42.9 29.4 21.4 31.6 49.1
Jul-16 50.9 32.7 30.0 32.8 33.5
The Months Inventory level has been on the highest side at 33.07 months,
which is a 6.3% increase from H2 2015. Except for the South-West region,
the Months inventory level of all other regions have increased.
The average price per sq. ft. being INR 13,560 in the Central region, the
Months Inventory stands at a level of 50.9 months. Being assessed at 32.8
months, the South-East region has not altered much on its inventory level
compared to the earlier period.
2.2.7 INVENTORY MOVEMENT
2.2.7.1 DEVELOPMENT TYPE WISE INVENTORY MOVEMENT
Apartment Plot Row House Villa Grand Total
Opening Stock - A 91,006 9,919 539 6,145 107,609
Net Addition - B 15,766 2,288 -17 92 18,129
Inventory C = A+B 106,772 12,207 522 6,237 125,738
Incremental Sales - D 16,355 3,055 34 725 20,169
Closing Stock E = C-D 90,417 9,152 488 5,512 105,569
The residential development has a net addition of 18,129 units in H1 2016,
which is more than half of the net addition in the H2 2015 (29,920 units).
16. 16 | P a g e
Apartment development has witnessed a 32.9% reduction in the net
addition in H1 2016 when compared to H2 2015.
The incremental sales stands at a value of 16% of the total inventory
available for sale. Only 20,169 units were sold from the overall 125,738 units
offered for sale. The closing stock of H1 2016 stands at 105,569 units.
2.2.7.2 REGION WISE INVENTORY MOVEMENT
Bangalore -
Central
Bangalore -
North East
Bangalore -
North West
Bangalore -
South East
Bangalore -
South West
Opening Stock - A 3,998 37,824 11,325 40,850 13,612
Net Addition - B 328 8,127 843 7,631 1,200
Inventory C = A+B 4,326 45,951 12,168 48,481 14,812
Incremental Sales - D 463 7,569 2,481 7,164 2,492
Closing Stock E = C-D 3,863 38,382 9,687 41,317 12,320
North-East region had the largest net addition of 8,127 units in H1 2016.
South-East region follows North-East region with a net addition of 7,631
units.
With high level of net additions, North-East and South-East regions have
higher incremental sales of 7,569 units and 7,164 units respectively.
2.2.7.3 PRICE CATEGORY WISE INVENTORY MOVEMENT
Values
Value
Homes
Budget
Homes
Mid- Range
Homes
Premium
Homes
Luxury
Homes
Ultra luxury
Homes
Opening Stock - A 12,259 37,834 32,195 23,334 1,740 247
Net Addition – B -2,117 14,681 5,911 -474 128 -
Inventory C = A+B 10,142 52,515 38,106 22,860 1,868 247
Incremental Sales - D 2,166 8,491 6,771 2,637 109 - 5
Closing Stock E = C-D 7,976 44,024 31,335 20,223 1,759 252
Budget homes holding the largest opening stock of 37,834 units has a large
net addition of 14,681 units. The incremental sales in this category stands at
16% of its total inventory.
The net addition in the Mid-Range Homes category has come down to 5,911
units in H1 2016 from 7,966 units in H2 2015.
17. 17 | P a g e
2.2.8 A COMPARISON ON THE INVENTORY MOVEMENT
H2-2014 H1-2015 H2-2015 H1-2016
Inventory 134,289(25.91%) 130,219(-3.03%) 131,912(1.3%) 125,738(-4.7%)
New addition 58,231(40.91%) 29,135(-49.97%) 29,920(2.7%) 18,129(-39.4%)
Incremental Sales 33,205(8.52%) 28,227(-14.99%) 24,303(-13.9%) 20,169(-17%)
*H1 – First half of a year
*H2 – Second half of a year
The above table illustrates the movement of inventory along with the new
additions as well as the incremental sales during the last six consecutive
years (half yearly basis).
Major changes have been noticed in the inventory movement, new
additions and incremental sales of H1 2016 when compared to H2 2015.
There has been a 39.4% decline in the new addition level in H1 2016,
whereas the incremental sales and inventory levels have declined to the
extent of 17% and 4.7% respectively from H2 2015.
93,206
106,656
134,289
130,219
131,912
125738
32,431
41,324
58,231
29,135
29,920
18,129
27,874
30,598
33,205
28,227
24,303
20,169
H 2- 2013 H 1 2014 H 2 2014 H 1 2015 H 2 2015 H 1 2016
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Inventory New addition Incremental Sales
18. 18 | P a g e
2.2.9 RESIDENTIAL MARKET DYNAMICS
2.2.9.1 DEVELOPMENT TYPE WISE MARKET DYNAMICS
Apartment Plot Row House Villa Grand Total
Total Supply in units 268,956 41,965 1,714 16,510 329,145
Unsold Units 90,417 9,152 488 5,512 105,569
Total Size in Mn sq. ft. 399.1 100.9 5.2 50.7 556.0
Unsold Size in Mn sq. ft. 133.1 21.8 1.5 17.0 173.4
Value of Unsold Inventory In Crores 72,250 4214 1,154 10,640 88,258
Apartment development having the largest share of residential real estate
of 268,956 units measures 399.1 Mn sq. ft. in size. From the total measure,
133.1 Mn sq. ft. remains unsold at a value of INR 72,250 crore. The total
unsold residential stock in Bengaluru is valued at INR 88,258 crore.
2.2.9.2 REGION WISE MARKET DYNAMICS
Central
North
East
North
West
South
East
South
West
Grand
Total
Total Supply in units 7,950 111,617 34,967 136,346 38,265 329,145
Unsold Units 3,863 38,382 9,687 41,317 12,320 105,569
Total Size in Mn sq. ft. 18.3 192.4 55.7 224.9 64.8 556.0
Unsold Size in Mn sq. ft. 8.0 63.5 16.8 66.0 19.1 173.4
Value of Unsold Inventory In
Crores
9,236 31,917 8,703 28,893 9,510 88,258
Considering the total supply in the market, South-East region has the largest
stock of 136,346 units at a size of 224.9 Mn sq. ft.
Valued at INR 31,917 crore, North-East region has the highest value of
unsold inventory in town. South-East follows North-East at a value of INR
28,893 crore of unsold inventory.
2.2.9.3 PRICE CATEGORY WISE MARKET DYNAMICS
Value
Homes
Budget
Homes
Mid-
Range
Premium
Homes
Luxury
Homes
Ultra-
luxury
Total Supply in units 30,704 137,825 95,000 58,745 6,313 558
Unsold Units 7,976 44,024 31,335 20,223 1,759 252
Total Size in Mn sq. ft. 43.1 181.9 151.2 150.9 25.9 3.1
Unsold Size in Mn sq. ft. 10.1 54.9 50.1 49.8 7.1 1.4
Value of Unsold Inventory In
Crores
1,611 20,317 24,066 31,732 7,462 3,071
Maximum supply of units has been mapped in Budget homes category. A
total of 137,825 units have been tabulated in this segment measuring about
181.9 Mn sq. ft. The total supply has however increased from 125,999 units
in H2 2015.
The unsold inventory of the premium homes category is valued at INR
31,732 crore for 20,223 units of unsold stock.
19. 19 | P a g e
ANNEXURE- REGIONS AND ITS LOCATION DETAILS
Regions Locations
Central
Andree Road, Benson Town, Binnipete, Brigade Road, BTM Layout,
Cunningham Road, Domlur, Frazer Town, Hennur Road, HSR Layout,
Indiranagar, Jayanagar, Koramangala, Lalbagh, Lalbaugh, Lavelle road,
Magadi Road, Mekri Circle, MG road, Palace Road, Rajajinagar, Richards
Park, Richmond Road, Sadashiva Nagar, Sankey Road, Shivaji Nagar,
VittalMallya Road, Wheeler Road.
North East
Avalahalli, Bagalur, Banaswadi, Chikkaballapur, CV Raman Nagar,
Devanahalli, Hebbal, Hennur Road, Horamavu, Hoskote, ITPL , Jakkur,
Jeevan Bhima Nagar, Kaggadaspura, Kammanahalli, KR Puram,
Mahadhevapura, Marathahalli, Nandi Hills, Old Airport Road, Old Madras
Road, Outer Ring Road, Ramamurthi Nagar, RMV Extension, RT Nagar,
Thanisandra Main Road, Vidhyanagar Cross, Whitefield.
North West
Doddaballapur Road, IVC Road, Jalahalli, Kannahalli, Kodigehalli, Magadi
Road, Malleshwaram, Mathikere, Nagarbhavi, Nelamangala, Rajajinagar,
Rajankunte, RMV Extension, Sahakar Nagar, Tumkur Road,
Vidyaranyapura, Yelahanka, Yeshwanthpur.
South East
Anekal, Attibelle, Bagalur, Bannerghatta Road, Begur Road, Bellandur ,
Bommasandra, BTM Layout, Chandapura, Chandapura - Anekal Road,
Electronic City, Gottigere, Gunjur, Haralur Road, Hosa Road, Hosur, Hosur
Road, HSR Layout, Jigani, Jigani -Anekal Road, Kasavanahalli, Marathahalli,
Marsur, Outer Ring Road, Panathur, Sarjapur, Sarjapur Road, Varthur.
South West
Banashankari, Bidadi, Jigani, JP Nagar, Kanakapura Road, Kengeri,
Kumbalgudu, Mysore Road, Peenya, Rajarajeshwari Nagar, Sulikere,
Uttarahalli.
* Regional categorisations for the report
PRICE CATEGORY AND ITS TICKET SIZES
Price Category Ticket Size
Value Homes 0 - 30 Lakhs
Budget Homes 30 Lakhs - 60 Lakhs
Mid - Range 60 Lakhs - 1 Crore
Premium 1 Crore - 3 Crore
Luxury 3 Crore - 8 Crore
Ultra-Luxury 8 Crore - 20 Crore
GLOSSARY
Inventory: It is the unsold stock between two dates of survey. It covers all new launches (new additions)
as well as carry forward inventory from the previous survey: Previous Unsold + New Additions.
Sales Velocity: This signifies demand – supply scenario in a market. It is the ratio between monthly sales
and total supply and gives an idea of gestation period of a project as per the existing dynamics. Ideally SV
shall be between 2.75% and 3%. The pace translates into gestation period of a maximum of 36 months of
a project.
Months Inventory: This represents the number of months required for the inventory in the market to be
absorbed according to the existing demand. It is calculated by dividing the closing stock (marketable stock)
by monthly sales.
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3 PART - III ANALYSIS ON BUYER BEHAVIOUR
For most home buyers, buying a home is one of the largest financial
transactions they will make. This survey was conducted by LJ Hooker Research
team consists of recent home buyers. It also provides a detailed insight
information about their experiences with the transactions. Here are highlights
from the latest report.
Idea to purchase a piece of Real Estate starts with exploring options with a
million dreams nurtured within. Their preferences give shape to their first
home, whether they should go for a Villa, Apartment, Individual House, or Plot.
3.1 PREFERRED DEVELOPMENT TYPE
TYPE OF DEVELOPMENT In %
Apartment 66%
Plot/Layout 24%
Villa 5%
Individual House 4%
According to the queries received from the prospective buyers, 66% preferred
Apartments, followed by Plot/Layout, which was favoured by 24%. Villas and
Individual Houses were favoured by 5% and 4% respectively.
The preference for an Apartment is typically an urban phenomenon and
reflects the sentiments of the buyers living in tier 1 & 2 cities in India. This
could be because of the security and community living benefits that only an
apartment can offer. Outside of tier 1 & 2 cities, India is predominantly a low
density environment where the preference will differ from the above.
3.2 REASON FOR PURCHASING/BUYING
People buy homes for various reasons like self-occupation, for investment or
earning rental income.
66%
24%
5%
4%
Apartment
Plot/Layout
Villa
Individual House
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4 PART- IV PRIMARY PROJECT SOURCE DATA