For major property developers in Bengaluru, average price realizations have dropped significantly in the past year, indicating that customers are preferring to buy lower-priced offerings and that developer are reducing prices.
In the quarter ended December 31, 2015, all the four major listed developers - Prestige, Sobha, Brigade and Puravankara -saw declines in their per-square-foot realizations, compared with the same quarter in 2014. The decline was as much as 38% for Brigade, 15% for Prestige, and 8% each for Sobha and Puravankara. Even compared to the preceding quarter (ended September), the realizations were lower for Prestige, Brigade and Puravankara, and slightly up for Sobha. Puravankara was down most at 29%.
Developer’s say this is on account of a higher number of lower-priced launches. That could be a reflection of buyers' budgets. But analysts believe that developers may be selectively reducing prices because of lower demand.
New sales, or total area sold, in the quarter dipped for most developers. Brigade and Nitesh Estates recorded their lowest new sales in almost five quarters at 0.44 million sq ft and 0.1million sq ft, respectively. Puravankara and Prestige were also able to sell far less area in the quarter compared to the same period last year.
Source : http://content.magicbricks.com/industry-news/bangalore-real-estate-news/bengaluru-buys-more-budget-homes-realtors-cut-price/84684.html
In the quarter ended December 31, 2015, all the four major listed developers - Prestige, Sobha, Brigade and Puravankara -saw declines in their per-square-foot realizations, compared with the same quarter in 2014. The decline was as much as 38% for Brigade, 15% for Prestige, and 8% each for Sobha and Puravankara. Even compared to the preceding quarter (ended September), the realizations were lower for Prestige, Brigade and Puravankara, and slightly up for Sobha. Puravankara was down most at 29%.
Developer’s say this is on account of a higher number of lower-priced launches. That could be a reflection of buyers' budgets. But analysts believe that developers may be selectively reducing prices because of lower demand.
New sales, or total area sold, in the quarter dipped for most developers. Brigade and Nitesh Estates recorded their lowest new sales in almost five quarters at 0.44 million sq ft and 0.1million sq ft, respectively. Puravankara and Prestige were also able to sell far less area in the quarter compared to the same period last year.
Source : http://content.magicbricks.com/industry-news/bangalore-real-estate-news/bengaluru-buys-more-budget-homes-realtors-cut-price/84684.html
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