Despite remaining unsold, apartment prices refuse to come down in Bangalore
Over 50,000 residential units in city are yet to find buyers. However, oversupply in property market shows no signs of fall in prices. This is a classic case of supply exceeding demand. Of the 89,761 residential units launched in the city since 2010, about 50,184 units are yet to find buyers. However, if you thought this to be the right time to buy a property, think again. The oversupply in residential apartments shows no signs of leading to a fall in prices. According to Srinivasa Reddy, assistant vice-president, research, Jones Lang Lasalle (JLL), a global property consultant firm, the number of vacant units in the city has been increasing steadily since 2008. “The increasing number of nuclear families, migration to metros due to employment prospects, along with natural growth of population, drove the growth of residential real estate sector in Bangalore. However, there has been a demand-supply mismatch, leading to piling inventory,” says Reddy.