NEO BANGALORE

INVESTMENT
OPPORTUNITY:
NEO BANGALORE
14
The Bangalore boom
Bengaluru will be the only major city to see a growth in new residential sales in 2014. Five
other major metros are expected to see a decline, with NCR and Mumbai being the worst
hit thanks to poor sentiment and high property prices.
The consultancy rm had in June estimated a 4% decline in sales at 2.75 lakh units across
these markets, but sharper than expected declines in NCR and Mumbai have upset those
calculations. Samantak Das, chief econo mist and director of research and advisory
services at Knight Frank India, says that amid the gloom, there is a slight twist in the
tale . Bengaluru is the only city that will end the year with a growth of 3-5%. It's expected
to report sales of about 60,000 residential units at the end of December as against
57,300 units in 2013. This is in line with Knight Frank's June estimate.
In contrast, the Bengaluru market is being kept a oat by what Das calls an a ordable
price threshold.
Bangalore Capital Value Movement
Premium / Luxury segment
High end / Mid end segment
25,000
16,000
14,000
20,000
12,000
(INR /Sq.ft.)
15,000
10,000
(INR /Sq.ft.)
10,000
8,000
6,000
5,000
4,000
2,000
0
Central
O
central
East
South
East
North South Central O
central
East
South
East
North
South
H2 2013 H1 2014 H2 2013 H1 2014
*Source: CBRE Global Research and consulting
*Source: CBRE Global Research and consulting
Summary Indian opportunity The Bangalore Boom
The new Bangalore
NEO Bangalore
About Artha O er FAQ S