Bangalore stands 2nd for accumulating most number of unsold housing units

Bangalore has moved up the chart for holding most number of unsold housing units in the 2^nd quarter of 2015. The total number of unsold units has increased to 84,000 and it doesn’t seem to deteriorate as the customer sentiments isn’t upbeat this year.  Despite discouraging figures, builders refuse to do the price corrections.

Bangalore is inching towards the top spot for maximum number of unsold housing units this year.  National Capital Region (NCR) takes the first spot and Mumbai stands at third in this segment. It is indeed shocking to see that Bangalore has overtaken Mumbai in this respect.

Builders in Bangalore are constantly coming up with new ventures to woo the customers to buy homes, as they are unable to sustain themselves in the market. This is due to the soaring land prices and their need to infuse cash flow into their business. Unfortunately, customers are not showing any interest in buying homes at this point of time as they are apprehensive about the Indian economy as a whole.

In spite of all the drawbacks Bangalore housing industry is quite stable unlike Mumbai and NCR regions. Bangalore housing industry is purely customer driven market while Mumbai and NCR are investor driven markets.

The houses that are priced below Rs. 80 Lakhs are having positive response in Bangalore as it caters to the middle class families. But, houses that range between Rs. 80 lakhs and Rs. 1 crore don’t seem to have many takers as they cater to premium customers. Though many middle class people are homeless they are unable to afford houses that are priced this high. The builders are also not building houses that cater to lower segment of the society, thus, there is a total mismatch between the demand and supply in housing industry.

However, houses built in premium areas that are close by to major employment centers are sold out quickly. Thus, the builders in Bangalore need to focus on building low budget homes or homes that are closer to major commercial or business hubs to reduce the number of unsold homes in Bangalore.