Post on 13-Jul-2020
PropIndex | Magicbricks
Residential Market Insights
Reduction in stamp duty and property guidance values to help revive Bengaluru real estate market
Bengaluru residential market maintained a steady momentum in the last 5 years with 17.7% and 33.3% surges inready to move and the under construction segment prices, respectively. However, the prices fell by almost 3% in thelast quarter due to the COVID-19 outbreak.
The state government took the initiative to support home buying by reducing the stamp duty on properties costingup to INR 35 lakh. Many local developers have also enabled online booking facilities such as digital signature, onlinepayment, virtual tours, and video conferencing to help in sales during the pandemic and offers such as "Once in aLockdown", are expected to bring the consumers back to the market.
5 YearChange YoY QoQ
-2.8%-1.5%17.7%
5 YearChange YoY QoQ
-0.8%1.7%33.3%
"Theunder-constructionsegment had a decent33% growth in the last5 years, but the recentpandemic brought adecline of 0.8% in Q2
2020"
BengaluruApr-Jun 2020
Parameters India Bengaluru
Demand+ -27% -14%Supply++ -43% -29%Price Index+++ -1.5% -2.8%
"QoQ 2.8% pricedecline in the
ready-to-move segmentwashed away the gainsmade during the
previous six quarters"
Notes:Above parameters represent QoQ change in Q2 2020 atIndia and city level + change in the volume of property searches ++ change in the volume of active listings +++ change in the weighted average price
Source: Magicbricks Research
Prestige Estates
SOBHA Ltd.
Brigade Enterprises
Mahaveer Group
Puravankara Ltd.
Salarpuria Sattva Group
Assetz Property Group
Shriram Properties
SNN Builders
Godrej Properties
Lakeside Habitat Whitefield
Sobha Dream Acres Panathur
Prestige Kew Gardens Yemalur
Prestige Song Of South Begur Road
Prestige Tranquility Budigere
Sobha City Thanisandra
SNR Verity Sarjapur Road
Ittina Neela Electronic City
Prestige Shantiniketan Whitefield
Welworth City Doddaballapur Rd
Average changes in prices for localities in various price segments
Market Dynamics
Ready to Move Price Index
Under Construction Price Index
- Post COVID-19 pandemic, governmenthas allowed partial sales of plots In thelayouts to ease the liquidity situation ofdevelopers and accelerate the layoutdevelopment process.
- State government allows theregularization of over 75,000 landparcels, which were initially a part ofthe BDA development scheme but wereunder unauthorized possession for morethan 12 years, by payment of penalty.
- Shortage of labour, supply chaindisruption and extension in the RERAdeadline by 3 months in Bengaluru islikely to shift delivery of some underconstruction projects by a few months.
"COVID-19 induced aprice decline of 1-3%across most budget
segments"
Key Trends to Watch Out
2014
2015
2016
2017
2018
2019
2020
2,000
4,000
6,000
8,000
10,000
2014
2015
2016
2017
2018
2019
2020
2,000
4,000
6,000
8,000
10,000
Price Bracket (INR per sqft)
< 5,000 5,000-6,000 6,000-7,000 > 7,000
RM UC RM UC RM UC RM UC
1.0%
-2.6%
-1.4%
-1.9%-1.5%
-2.0%
-1.0%
-3.3%
Key Projects
Key Developers based on activelistings
Project Name Locality
Average Price INR per sqft
Average Price INR per sqft
The above table represents the top developers by share ofactive listings on Magicbricks website in Q2 2020
Source: Magicbricks Research
Note:The above table represents the top projects by consumerpreference on Magicbricks website in Q2 2020
Source: Magicbricks Research
Notes:1. Ready to move price index represents the weighted average price of completed properties on Magicbricks website as on June 20202. The trend line represents the average prices of dominant asset class in each locality of the city. Source: Magicbricks Research
Note:1. Under-construction price index represents the weighted average price of under-construction properties on Magicbricks website as on June 20202. The trend line represents the average prices of dominant asset class in each locality of the city.
Source: Magicbricks Research
Note:Above table represents the price changes for Ready to move (RM) and Under construction (UC) properties for dominant asset classes in each locality under various pricebuckets as on June 2020
Source: Magicbricks Research
Page 1© magicbricks.com
Above 3 BHK6%
3 BHK42%
2 BHK46%
1 BHK6%
DEMAND
Demand Supply Analysis Bengaluru | Apr-Jun 2020
Demand-supply mismatch emerging in INR <5,000 per sqft price bucket
2 and 3 BHKs together make up for ~ 90% of the demand and supplyWhitefield, Sarjapur Road, BellaryRoad and Electronic City were mostpreferred in Q2 2020
- Bengaluru thrives on a healthy mid-segmentdemand, with both 2 and 3 BHKs each accountingfor more than 40% of the demand and supply.Together they account for 88% of the propertysearches and 92% of the supply.
- However the market is slowly shifting to theaffordable segment, and a small demand-supplymismatch is emerging in the less than INR 5,000per sqft price bucket.
- The demand for 1 BHK and 2 BHKconfigurations is likely to further increase due tothe reduction of stamp duty between 3% to 5%for properties costing upto INR 35 lakh.
"The affordable housingmarket in Bengaluru to growfurther as peripheral areas
develop"
- Whitefield, Sarjapur Road, Bellary Road andElectronic City were the top 4 micromarkets inthe city, supported by factors such asaffordability, better access to IT hubs and soundconnectivity to the airport.
- The extension of metro lines fromBaiyappanahalli – Whitefield and RV Road –Bommasandra is likely to boost the demand forthe economic hubs of Whitefield and ElectronicCity in the future.
Top Micromarkets by consumersearches
Propensity of demand and supply in terms of searches andlistings by localities
Above 3 BHK5%
3 BHK46%
2 BHK46%
1 BHK3%
SUPPLY
6000-700018%
5000-600024%
> 700024% < 5000
34%
SUPPLY Price buckets in INR per sqft
Top Micromarkets by active listings
6000-700014%
5000-600020%
> 700024%
< 500042%
DEMAND Price buckets in INR per sqft
Notes:1. Demand represents property searches on Magicbricks website during Q2 2020, segregated by Bedroom, Hall, Kitchen (BHK) configuration2. Supply represents active listings on Magicbricks website during Q2 2020, segregated by BHK configuration
Source: Magicbricks Research
.Notes:1. Demand represents property searches on Magicbricks website during Q2 2020, segregated by price buckets2. Supply represents active listings on Magicbricks website during Q2 2020, segregated by price buckets
Source: Magicbricks Research
Note:1. Above map depicts the key localities of the city, with the size of the bubble depicting demand (consumer preference) /supply (active listings) forproperties in the localities on Magicbricks website in Q2 20202. This is an interactive map available on Magicbricks.com under Propindex section.Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard.
Source: Magicbricks Research
Note:1. Top micro-markets of the city, ranked by their active listings onMagicbricks in Q2 20202. Price ranges represent the range of avg locality prices in themicromarket in INR per sqft.
Source: Magicbricks Research
Note:1. Top micro-markets of the city, ranked by number of searches onMagicbricks in Q2 20202. Price ranges represent the range of avg locality prices in themicromarket in INR per sqft.
Source: Magicbricks Research
Sarjapur Road
Bannerghatta
Tumkur Road
Indira Nagar
Chandapura
Devanahalli
AnjanaPura
Hoskote
Gunjur
© OpenStreetMap
Demand/SupplyDemand
Whitefield 3800 - 8750
Sarjapur Road 3750 - 8350
Bellary Road 3950 - 9900
Electronic City 3000 - 6450
Kanakapura Road 3750 - 9550
Bannerghatta Rd 3350 - 8500
JP Nagar 4050 - 12700
11
22
33
44
55
66
77
Whitefield 3800 - 8750
Sarjapur Road 3750 - 8350
Bellary Road 3950 - 9900
Electronic City 3000 - 6450
Kanakapura Road 3750 - 9550
Bannerghatta Rd 3350 - 8500
Hosur Road 3150 - 8250
11
22
33
44
55
66
87
Micro-Market Price Range Rank Rank Q2-20 Q1-20
Micro-Market Price Range Rank Rank Q2-20 Q1-20
Page 2© magicbricks.com
Note:1. Size of the bubble depicts demand, measured by volume of property searches in localities in Q2 20202. Color of the bubble represents price change in Q2 2020, with green color representing price increase and red color price decrease.3. This is an interactive map available on Magicbricks.com under Propindex section.Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard.
LocalityAvg.Price
PriceChange
Attibele
Hoskote
Chandapura
Sarjapur-Attibele Rd
Ramamurthy Nagar
Kengeri Town
Kaggadasapura
Kengeri
Gunjur
Singasandra
Kalkere
Bagalur Main Road
Kadugodi
Hosur Road
Electronic City
K R Puram
-1.0%
-7.2%
2.5%
-7.5%
-1.4%
2.5%
-3.6%
0.8%
-5.3%
0.7%
-3.1%
-3.4%
-5.8%
3.5%
0.0%
-1.2%
-1.7%
-0.6%
-2.9%
-2.4%
-7.5%
-4.1%
-3.2%
-6.8%
-7.1%
4,982
4,966
4,954
4,930
4,922
4,907
4,907
4,848
4,795
4,778
4,761
4,711
4,694
4,526
4,493
4,492
4,492
4,365
4,334
4,288
4,187
3,838
3,632
3,562
3,041
< INR 5,000 psf INR 5,000-6,000 psf INR 6,000-7,000 psf > INR 7,000 psf
Price Analysis Bengaluru | Apr-Jun 2020
- Price rationalisation was mostly observed in the established localities of North Bengaluru, including Hebbal, Horamavu, Hennur, and Malleshwaram witnessingprice decline of 5-7%.
- Localities with price increment in the quarter were mostly concentrated in South Bengaluru, including localities of Begur Road, Uttarahalli, and Koramangala. Source: Magicbricks Research
LocalityAvg.Price
PriceChange
Banashankari
Jalahalli
Arakere
Brooke Field
Hoodi Circle
Marathahalli
Kundalahalli
Vijayanagar
HSR Layout
Mahadevapura
Bannerghatta
BEML Layout
Panathur
Hoodi Circle
Kudlu Gate
JP Nagar Phase 7
-1.2%
1.4%
3.4%
1.1%
-3.3%
-0.2%
-5.4%
-7.5%
-6.6%
-0.2%
0.0%
2.8%
-5.1%
-7.5%
-3.6%
2.3%
0.7%
-7.5%
6,633
6,600
6,577
6,569
6,545
6,515
6,399
6,386
6,284
6,277
6,232
6,202
6,095
6,075
6,063
6,045
6,039
6,024
LocalityAvg.Price
PriceChange
Outer Ring Road
Bellandur
C V Raman Nagar
Hebbal Kempapura
Konanakunte
Yeshwantpur
Hebbal
Old Airport Road
Yemalur
JP Nagar Phase 1
Frazer Town
Binnypete
Magadi Road
Cooke Town
Malleshwaram
Basavanagudi
-6.8%
1.1%
-7.5%
-0.6%
-0.8%
-7.5%
2.7%
0.6%
0.0%
-6.0%
0.0%
-7.5%
-7.5%
-5.5%
-5.8%
-5.8%
-6.2%
3.0%
1.4%
-7.5%
13,984
11,123
10,400
10,390
10,321
10,269
9,895
9,793
9,500
9,205
9,107
7,779
7,695
7,587
7,477
7,357
7,339
7,242
7,127
7,010
Note:1. Above is the list of major localities of the city, with information about their average prices and QoQ price changes in Q2 2020. This is an interactive table available on Magicbricks.com under Propindex section.2. The locality prices are calculated by averaging the prices of all properties in a locality in multi-storey and builder floor segment, after removing the outlier properties that might distort the overall prices.3. The four tables above categorize the localities in various price buckets.4. The color of the numbers represent the price change in Q2 2020, with green color representing price increase, red color price decrease, and grey as neutral. Source: Magicbricks Research
Disclaimer: The data represented above is compiled by MagicBricks from multiple sources. MagicBricks gives no warranty, express or implied, as to the accuracy, reliability, and completeness of any information and does not acceptany liability on the information which may or may not be subject to change from time to time due to Governmental or non Governmental regulations/directions.
Q2 2020 Price changes for the city's major localities
LocalityAvg.Price
PriceChange
JP Nagar Phase 8
Electronics City Ph 1
Hegde Nagar
Devanahalli
Yelahanka
Chokkanahalli
Subramanyapura
Tejaswini Nagar
Hosa Road
JP Nagar Phase 5
Yelahanka New Town
Nobel Residency
Bommanahalli
Gubbalala
Kogilu
Hulimavu
-1.4%
-2.7%
-2.0%
-4.0%
2.8%
-1.8%
-5.9%
-7.5%
-4.2%
-6.4%
-3.7%
-6.7%
0.1%
0.6%
-5.0%
0.0%
-2.9%
-3.7%
2.0%
0.0%
0.0%
0.9%
3.1%
0.7%
1.7%
0.3%
-4.5%
4.6%
-2.6%
-2.6%
-1.3%
-0.6%
-3.4%
-2.9%
-1.7%
0.3%
2.6%
-5.3%
-7.5%
-3.0%
1.5%
1.3%
0.0%
-1.6%
-6.2%
-0.4%
0.0%
-1.1%
0.0%
-3.9%
-3.4%
-7.5%
-1.0%
-6.2%
5,973
5,888
5,887
5,843
5,839
5,838
5,834
5,826
5,810
5,789
5,752
5,748
5,741
5,702
5,683
5,648
5,635
5,624
5,610
5,579
5,572
5,549
5,506
5,500
5,472
5,466
5,451
5,445
5,434
5,424
5,399
5,396
5,390
5,356
5,318
5,309
5,293
5,271
5,251
5,228
5,223
5,175
5,152
5,151
5,146
5,125
5,123
5,110
5,093
5,092
5,092
5,060
5,060
5,037
Surabhi Arora | Head of Research Devendra Lohmor | Chief Manager Ankur Upadhyay | Data Manager Rikitha Murthy | Sr. Research Analystsurabhi.arora@magicbricks.com devendra.lohmor@magicbricks.com ankur.upadhyay@magicbricks.com rikitha.murthy@magicbricks.com
Please go to https://property.magicbricks.com/microsite/buy/propindex/ to access the full dashboard.
For more information and research related queries, please contact:
Sarjapur-Attibele Rd-4.1%
Budigere Cross-3.4%
Electronic City-3.1%
Sarjapur Road-1.8%
Bannerghatta-7.5%
Mysore Road0.8%
BEML Layout-5.4%
Indira Nagar-0.6%
Rajaji Nagar-6.8%
Chandapura-3.2%
Nagarbhavi-5.3%
Begur Road0.3%
Banaswadi0.3%
Gottigere0.9%
Panathur-0.2%
RT Nagar2.8%
Sarjapur2.0%
Varthur-1.3%
Kengeri-0.6%
Hennur-5.0%
© OpenStreetMap
-7.5% 7.5%
-5% -2.5% 0% 2.5% 5%
Page 3© magicbricks.com