Q1 of 2021 saw a revival in housing demand with a majority of buyers purchasing ready-to-move-in homes that saw a decline in the inventory of ready-to-move in properties.
There were around 3700 new units that were launched in Q1 of 2021 which is about 5% Quarter-On-Quarter growth.
Sustainable recovery will take another 4-5 more quarters to as there is increased housing demand however developers are very cautious due to presence of the second wave and possibility of a third wave with focus on sales of existing ready-to-move-in units and then on to completion of ongoing pending projects which have slumped due to lack of sales and increased material prices.
With regards to new launches, mid segment housing dominated sales with a 77% share in, 14% share in high end segment housing and 8% share in the affordable housing segment reason being that small scale developers are holding back on new launches due to liquidity concerns.
Buyer sentiment indicates that land purchase is a long term investment option and plotted developments by mid scale developers are on the rise in the outskirts of Bangalore which are piquing developers’ interest levels: example of locations would be Attibele, Chikballapur, Anekal and Bommanahalli.
Q1 has also seen a demand for Self-owned homes at affordable prices which in turn have caused developers to launch mid-scale villa projects in such locations with 31% of new launches however preference for larger sized apartments like 3&4 BHKs within city limits continues to dominate with 55% of new launches owing to the fact of WFH.
