Bengaluru, Jan 28, 2016: Knight Frank India today launched the fourth edition of its flagship half yearly report – India Real Estate. It presents a comprehensive analysis of the residential and office market performance of Bengaluru for the period between July–December 2015 (H2 2015).

Residential Takeaways:-

  • Bengaluru remains one of the best performing markets with steady sales; restricted launches have cut down the stress
  • The city recorded a decline of 27% Y.O.Y. in new launches in 2015 – the lowest number of launches in five years

  • South Bengaluru witnesses increase in new launches in H2 2015; peripheral locations such as Chandapura, Anekal emerge as upcoming budget destinations

  • West Bengaluru emerges as the best performing market with the least number of Quarters to Sell; metro connectivity and lifestyle projects adding to its attractiveness

Bengaluru Residential Market Trend:

Source: Knight Frank Research

Office Takeaways:-

  • Bengaluru office market continues to be bullish in its demand with 11.1 mn sqft absorption in 2015, the highest since 2011

  • Absorption in H2 2015 increases by 14% YOY; new completions remain steady

  • While e-commerce is in the horizon, IT/ITeS continues to dominate in H2 2015 with 70% absorption

  • Peripheral office markets in the South and North witnesses increased occupier interest in H2 2015 owing to dearth of large ready spaces in other prime office markets of the city

Office New Completions and Absorption:

Source: Knight Frank Research

Speaking about the findings, Satish BN~ Executive Director, South said:

The Bengaluru residential market remains one of the best performing market in India. Although the residential market did witness some lows with 13% drop in launches YoY, this has in turn helped in bringing down the stress by cutting down the inventory. We presume upward pressure on prices with an expected 7% weighted average price hike in the next six months.

Bengaluru Office market, on the other hand, continues to be bullish in its demand with record high figures since 2011. However, dearth of ready-to-occupy office space is a concern as it is unable to catch up with the quantum of demand, leading to emergence of peripheral locations in the South Bengaluru witnessing occupier interest”.

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