{"id":18182,"date":"2024-04-04T13:32:57","date_gmt":"2024-04-04T13:32:57","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/04\/heres-how-bengalurus-water-crisis-has-affected-real-estate-sales-as-per-knight-frank-report\/"},"modified":"2024-04-04T13:32:57","modified_gmt":"2024-04-04T13:32:57","slug":"heres-how-bengalurus-water-crisis-has-affected-real-estate-sales-as-per-knight-frank-report","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/04\/heres-how-bengalurus-water-crisis-has-affected-real-estate-sales-as-per-knight-frank-report\/","title":{"rendered":"Here’s how Bengaluru’s water crisis has affected real estate sales as per Knight Frank report"},"content":{"rendered":"
\"Here’s<\/div>\n
Housing sales in Bengaluru have dipped by 2% to 13,133 units from 13,390 units in the year-ago period due to a reduction in sales in the affordable category even as the office demand<\/a> in the IT city<\/a> remained flat at 3.5 million square feet, a report by Knight Frank has said.<\/p>\n

Sales Decline in Affordable Segment<\/strong><\/p>\n

\u201cThe less than \u20b950 lakh housing segment saw sales decline by almost 65% to 70% in the first quarter of 2024 which has brought down the overall numbers. The sales in the \u20b950 lakh- \u20b91 crore residential segment has dipped by 7 percent. This is primarily on account of the affordability challenges faced by buyers of this segment. This may be a temporary blip,\u201d said Vivek Rathi, head of research at Knight Frank India<\/a>, at the launch of the Knight Frank titled India Real Estate: Office and Residential Report (January – March 2024).Rise in Sales of High-End Houses<\/strong>
Having said that, sales of houses in the more than \u20b91 crore segment have gone up by almost 50% despite the taps running dry in the city, he added.<\/p>\n

Water Crisis Impact<\/a> Debated<\/strong>
Asked if the water crisis in Bengaluru has had an impact on the real estate market<\/a>, Shishir Baijal, chairman and managing director, Knight Frank India, told reporters that the \u201cwater crisis has not had too much of an impact on the housing sales trajectory and cannot be attributed to the decline in sales or the market performance. Having said that, the issue has to be sorted as Bengaluru is an important commercial market and a favorite city for office space occupiers. It is the commercial leasing capital of the country. Government bodies will have to get around to resolving the water issue,\u201d he added.<\/p>\n

Bengaluru’s Housing Sales Numbers<\/strong>
The residential market of Bengaluru witnessed a total residential sales<\/a> volume of 13,133 units and 13,135 units were launched in the period with an annual growth of 9% YoY in Q1 2024. The average weighted residential price witnessed an increase of 9% YoY which was the second highest across the eight Indian cities during Q1 2024 with a value of \u20b96,145 sq ft, the report showed.During Q1 2024, as many as 993 units were sold in the less than \u20b950 lakh category which was a decline of 68%; 6065 housing units were sold in the \u20b950 lakh to \u20b91 crore category which was a 7% decline in sales in the category and 6075 units were sold in the \u20b91 crore plus category which was an increase of 50%, the report showed.<\/p>\n

Office Space Transactions<\/strong>
Bengaluru has recorded office space transactions of 3.5 million square feet (mn sq ft) in Q1 2024. The IT Capital of the country spearheaded the commercial market growth<\/a> and constituted 22% of 16.2 mn sq ft of transactions across leading eight Indian cities, the report showed.<\/p>\n

Office completions in the city grew by 275% to 5 mn sq ft in Q1 2024 from 1.3 mn sq ft in Q1 2023. Bengaluru accounted for nearly 38.46% of new office completions across leading eight markets of the country.<\/p>\n

During Q1 2024, the major occupancy\/leasing activity in the city was driven by Global Capability Centres with 51% attribution. The Global Capability Centres (GCC) oriented transactions in the city have increased by 38% YoY from 1.3mn sq ft in Q1 2023 to 1.8mn sq ft in Q1 2024. Flex office areas accounted for 26% to the city\u2019s leasing activity which was followed by India-facing business and Third-Party IT Services at 14% and 9% respectively, the report said.<\/p>\n

Impact on Apartment Rentals<\/strong>
Apartment owners, especially in areas where there is no Cauvery water connection, are having a tough time finding people to occupy their vacant flats, owing to the water crisis in the city. Following the news that many apartments in the city were running dry, over the last month, the number of queries seeking rented flats has come down significantly, real estate agents noted. <\/p>\n

While the situation is a little better in areas close to tech parks, realtors opined that the apartments on the Kanakapura Road were the most affected and the problems were evident in huge apartment complexes. According to a a local real estate agent from Puttenahalli. As a result, many flats in these areas have been lying vacant over the last month.<\/p>\n

Damage Control Efforts<\/strong>
The situation has been blown up and is not as worse as it is being portrayed, many apartment dwellers maintained. Understanding that the water crisis was having a huge impact on real estate prices, many apartment owners\u2019 associations are now trying to bring down the damage caused. Many associations have warned members to refrain from updating the situation on social media. <\/p>\n

\u201cAs in every other part of the city, we also have a crisis and we are managing it. But the rumors that there was no water to meet even the basic needs are false and such fake news is making it difficult for many of us to get people to rent the flats. Hence, the association is trying to warn people against spreading such fake news,\u201d an owner from an apartment complex in Kanakapura said on conditions of anonymity.<\/p>\n

Impact on Paying Guest Accommodations<\/strong>
The Paying Guest (PG) accommodations in the city are also having a tough time. On one hand, their maintenance costs have gone up significantly since they have to rely on water tankers for water supply and on the other hand, many inmates are shifting out to areas with better water supply. <\/p>\n

\u201cWe cannot demand a higher rent since it is a temporary situation and it will be difficult for the inmates since their salaries will not go up. However, we are requesting them to use water cautiously and this has not gone well with a few who vacate the PGs and move out to areas with better water supply,\u201d explained Sukhi Seo secretary of the Bangalore PG owners\u2019 association.<\/p>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Housing sales in Bengaluru have dipped by 2% to 13,133 units from 13,390 units in the year-ago period due to a reduction in sales in the affordable category even as the office demand in the IT city remained flat at 3.5 million square feet, a report by Knight Frank has said. Sales Decline in Affordable […]<\/p>\n","protected":false},"author":2,"featured_media":18183,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-109038938,imgsize-179260.cms","fifu_image_alt":"","footnotes":""},"categories":[602],"tags":[1946,23644,23642,15399,23651,734,9122,1498,671,23649,1638,23650,23646,23643,2881,23647,61,23648,2022,556,23645],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/18182"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=18182"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/18182\/revisions"}],"predecessor-version":[{"id":18184,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/18182\/revisions\/18184"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/18183"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=18182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=18182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=18182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}