Imminent supply, high interest rates and replacement of independent bungalows by compact residential complexes have finally corrected the residential property prices in Bangalore!!
The soaring property prices were a resultant of demand-supply mismatch in the residential sector which in turn brought in magnanimous investments in the past one year. Sky high rates in Sarjapur Road, Hosur Road, Bannerghatta Road near Jigani, Bellary Road, Doddaballapur Road and Hoskote are now expected to cool down a bit as additional supply of premium residential land is in the pipeline over the next year.
The Deputy Managing Director of real estate consultancy firm Cushman and Wakefield, Anurag Mathur stated that there has been a reduction in the interested investors owing to exorbitant price points and spiraling interest rates. He further reiterated that prime realty markets which have reached a threshold and are being stocked up with new supply, shall call for a rationalization of capital values.
The figure of new supplies over the period is expected to cross over 1, 40, 000 units! :)