Riding on continued wave of growth in IT/ITeS sector, Bengaluru realty market bucked the trend ending 2019 on a high note with supply in the affordable segment nearly doubling from previous calendar year, according to residential real estate advisory firm Trespect India.
With a 14% decline in unsold inventory in the residential space and now accounting for just 9.6% of the total unsold inventory across top seven cities (Bengaluru, Chennai, Hyderabad, Pune, MMR, NCR, and Kolkata), Bengaluru's inventory overhang now stands at 15 months, the lowest amongst metro cities, it said.
Inventory overhang is the total unsold homes divided by the average monthly sales rate, it was noted.
Continuing the trends from the last two years, East Bengaluru outshined other regions within the city, with the maximum homes sold in 2019.
Out of 50,450 units sold in 2019, about 35% were in the eastern part of the city.
"Presence of IT-ITeS companies, robust social infrastructure, and upcoming infrastructure upgrades have helped the region to evolve into a self-sustaining hub", the firm said.
The increase in sales in East Bengaluru was also visible in the unsold inventory, which recorded a drop of 18% in the fourth quarter of 2019 as against the same period in 2018.
CEO of Trespect India Pvt ltd, Sunil Mishra said, "Bengaluru has witnessed a healthy 14% growth in new launches, with those in the mid-segment ( ₹40 lakh- ₹80 lakh) accounting for 42% share while affordable segment units (less than ₹40 lakh) contributed to a 30% share of the total new homes added in 2019".
Additionally, homes in the luxury ( ₹80 lakh- ₹1.5 crore) and ultra-luxury ( ₹1.5 crore- ₹2.5 crore) segments have also gained some sales momentum in 2019, he added.
Sarjapur Road and Whitefield in East Bengaluru were among the top five micro-markets that recorded maximum new launched homes in 2019.
Increased commercial developments, presence of the IT- ITeS establishments along the Outer Ring Road and Whitefield, and good social infrastructure have been instrumental in driving residential growth in this region, it was stated.
Out of the total under-construction supply in the city, 50% is expected to be completed by the end of 2020.
Thus, an uptick in sales is expected over the next three to four quarters, which will further reduce the inventory overhang, Trespect added.