The past few years have seen Sarjapur Road micro market, in south west Bangalore, emerge as a hot spot for middle income group housing. The going rate for apartments in this locality between July and September 2015 stood at INR 6400 psqft which was a fall of 10% in prices when compared to the previous quarter according to data from IndiaProperty.com. Notwithstanding the minor ups and downs in property price trends, Sarjapur Road continues to be a good bet especially for those who are employed in any one of the Information Technology (IT) hubs on Outer Ring Road (ORR), Whitefield and Electronics City. Two IT majors also have their campuses on this road, which makes it more sought after.
Another reason for the popularity of Sarjapur Road among mid level IT professionals is that other localities that techies flock together such as Whitefield, ORR, and E City have become saturated.
The availability of larger parcels of land on Sarjapur Road has led to the development of commercial property in this locality. Developers of commercial property have come to Sarjapur Road as larger spaces are not available in Whitefield or ORR. The demand for Grade A office space is ongoing. This in turn has paved way for residential development for the middle income group. The demand is for houses in the below INR 50 lakh band and this mostly comes from end users. The locality also has a well established social infrastructure of hospitals and schools which adds to its popularity.
The causes for concern are traffic congestions at all the major junctions, the bad condition of internal roads and the lack of water supply to some locations. Though flyovers and underpasses have come up, efficient traffic management is the need of the hour.
The current situation on Sarjapur Road is that supply of apartments has far exceeded the demand. Though there is demand from end users, there are a lot more apartments to be sold off. This has resulted in a slowing down of pre launches and launches of housing projects. More than 30% of the housing which is being developed in Bangalore is now in Sarjapur Road and the areas around such as Haralur Road and Gunjur.
Despite the strong demand, there are over 1000 unsold housing units in Sarjapur Road. According to recent research, Bangalore has the second highest number of unsold apartments among other Indian metros. The numbers of housing units which are unsold are 84,000 units as on the quarter ended June 2015. Bangalore has overtaken both Mumbai for unsold inventory and is second only to Delhi’s National Capital Region (NCR).
Developers say that though there are a number of enquires, these are not translated into actual purchases. The reasons for this are varied starting with the slowing economy, rising food costs and going on to a lack of consumer confidence; this has led to people putting off their investments to a later date, when things ease off a bit.
Like other parts of the country, in Bangalore too, apartments within the price band of INR 35 lakh to INR 80 lakh get off the shelf quite fast as there is a demand for this price band, but houses which are priced above INR 1 crore find few takers. However, most of the apartments which have been launched in Bangalore are priced between INR 75 lakh and INR 1 crore. While sales are slower on Tumkur Road, Mysore Road and the west of Bangalore; Sarjapur Road, Kankapura Road, Bellary Road and Varthur in Whitefield, which have easy access to IT clusters, are in demand.
Nina Varghese for IndiaProperty.com