Bengaluru: The real estate market in the National Capital Region (NCR), the largest in the country, is now dominated by buyers looking for a home for themselves, as falling launches, collapsed sales and the pile of unsold homes have chased out short-term speculators betting on future price increases, a Knight Frank India report said.
Depressed market sentiments have also forced long-term investors who have remained invested over the 3-4 year construction period of a project to look for exits, the research report said.
“Stagnant prices and delayed project deliveries have contributed towards investors entering into a ‘distressed resale’ mode, as they are now offering to exit at a 15-20% discount than the primary market price,” the report said.
Residential unit launches in January-June were 11,360, 68% below the numbers a year ago. With investors avoiding property as an investment option and end-users feeling let down by delayed projects, developers were pressed to restrict new launches during this period, resulting in fewer homes coming into the market.
Sales fell by half during the same period, to just 14,250 units. The six-month sales were, however, 18% more than sales seen in the July-December 2014 period.
Data from the report shows that as the buyer profile changes with more real homebuyer participation, most launches this year were in the ‘affordable’ segment.