Property markets across India have tumbled in recent times. In the last quarter itself, Mumbai and National Capital Region (NCR) saw a drop in volumes by 58% and 57% respectively. However, one city has been an exception in the current turmoil. It's Bangalore. The city registered a volume drop of just 18% in the last quarter. Moreover, it also absorbed 49 million sq ft of residential space in the last year. This is highest by any city in India. Apart from this, it also registered highest absorption rate when it came to commercial real estate market.
So, what has been the reason for this outperformance? Presence across all price points is one of the reasons. For instance, in Bangalore one can buy a property ranging from Rs 20 lakhs to Rs 1 crore with ease. Stability in prices is another reason. It may be noted that during the bull run, prices in Mumbai and NCR went through the roof. But in Bangalore, the rise was gradual. Calibrated price increases resulted in high affordability. Also, it may be noted that Bangalore is an IT hub. Thus, the demand for commercial space is likely to remain buoyant there as compared to other cities. However, the situation might change soon as many pending project approvals in Mumbai have been recently given a green signal by the local municipal authority.