However, due to the general slowdown which impacted all other categories of real estate across the country, villa project absorption has been moderate in Bangalore. Even here not all the projects are driving demand due to a combination of factors.
Areas that are holding unsold inventory of villas and row houses in Bangalore include Jigani-Anekal road, Whitefield, Gunjur, Yelahanka, Sarjapur road, Sarjapur, Nandi hills, Haralur road, Marathahalli, Bellary road, Old airport road and Devanahalli, according to a survey by L J Hooker.
While all categories saw a drop in sales velocity, mid-range and luxury homes surprisingly fared best at the rate of 2.5 per cent and 2.7 per cent respectively which was better than the average of only 2 per cent. Inventory stands at 14 months or higher for every category, the survey adds.
Significantly, the overall demand for villas has picked up recently if the number of enquiries received by select villa developers is any indication in Bangalore. Demand for villas, in particular, in North Bangalore has picked up due to proximity to airport and proposed infrastructure development in the region.
The sales, on an average, has been hovering in the region of 2-3 units every month, according to leading developers marketing villa projects in the city.
In a related development, however, a few developers are reporting robust sales in areas like Whitefield. Luxury villas in the price range of Rs 7.5 crore – Rs 9.3 crore saw increasing absorption, boosting the confidence of the developers keen to implement such projects.
“If there is add on value, ideal location and the product is implemented by a developer with a track record, then sales is not a constraint for high-end projects even today”, feels V Sridhar, General Manager, Sales & Marketing, Chaithanya Projects Pvt Ltd. A substantial number of villas launched recently were sold in the local market itself, he adds.