Friday, April 05, 2013

Bangalore: New launches momentum continues

1QCY13 saw new launches momentum continue > 10,000 units. This is only the third time since year 2008 wherein Bangalore witnessed > 10,000 unit launches in a qtr. The previous two instances were Q4CY12 and Q1CY11. All three instances have been in 2H of respective fiscal years confirming our theory that Real Estate sector is more active in 2H (Diwali and local New Year qtrs) compared to 1H.

Bangalore witnessed highest number of residential sales in a quarter since year 2008 led by 1) flurry of new launches; 2) affordability as Bangalore prices have risen by CAGR of 8.5% in last 10 years; 3) rise in number of investors in Bangalore; 4) softening of mortgage rates expected in CY13 and 5) end-users
becoming comfortable with job security and salary hikes in CY2013.

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