Bengaluru : Over the past few years, Bengaluru has been the quest growing metropolis in India as well as this is also known as the IT hub of India. Recently there has been a steady development found in the real estate sector. Means, the demand for the high-end and luxurious residential apartments is also increasing. According to the Vice Chairman & Managing Director of Sobha, CFO of Brigade Enterprise Suresh Kris that there has been a rise in demand for the luxurious apartment, but this demand is compensated by the demand of the small sized apartment like two bedroom apartment. These apartments are also low prize apartment. So that the cost has now really dipped from 40% to 30%. There commercial space are also high in demand with the city, that’s why last year,14 million square feet were absorbed by the city and it is expected to be absorbed 17 million sq ft, in the coming year.
In the present year, several outside players are coming in the city with some bigger project. But it cannot make any impact on property prices; in fact, they observe that they are 10-12 percent hike in property prices. Actually the level of inventory could vary for each developer. It is a fact that any property developers generally do not want to suffer any losses. The price of an apartment might depend on three main components like the price of the land, labor costs, hike in approval costs. Due to this thing the property price may higher than your expectation. As we know that the price of land never goes down and also labor costs has been on a rise in currently.
In most of the other cities, the volumes have been, but Bengaluru has been holding firmly, there is no fall in volumes. So that most of the A grade developers are concerned about the fact. In the first two quarters, like January to June, the kind of products which are priced more than Rs 1.5 crore dips in demand. This has also happened in Bangalore. People are attracted by the small size apartment like two bedroom apartments, which are usually within 1,000-1,200 sq ft. Rather than prices coming down, most of the people want to get a lower priced ticket sized products. So this year the total square footage and also volumes in Bangalore must be better and it must keep growing.
To the extent the unsold stock issue is concerned, the entire of southern business which most likely today constitutes more than two-third of India’s volumes in level I urban areas, you have under 33% of the stock. Presently, when we take a gander at the stock part likewise, we have to see that last quarter, I began a task with near to 7,000 units, so the dispatch was with 7,000 units and the majority of the gentlemen will consider that as a stock for Sobha however, we are doing it in a stage astute where we would have begun with just 2,000 units first and we have sold a noteworthy bit of that. Remaining is not accessible and it would be the sold stock. So one needs to take a gander at that today engineers are dispatching greater undertakings, bigger ventures so there will be an issue of stock however whether they convey the completed stock or not. In our perspective when we are going to convey this year, 4 million sq. ft in addition to a private space, there may not be 100,000 sq. ft of completed stock, we will be conveyed .