Zippserv Report: Resale Property transactions, two and a half times that of New Property transactions in Bengaluruin 2017

A study conducted by Zippserv, Indiaa��s first real estate risk assessment platform titled a�?Bengaluru REAL Estate 2017a��– reveals charting trends for Resale Properties, Sites and Independent Houses as opposed to New Apartments. Zippserv analyzed over 2 Lakh property transactions at the Sub Registrars Offices in the city which revealedsome exciting trends that reflect the realbuyera��s preferences in the past year.A� As per the study – the market for plots, independent houses and resale flats is 3 times the market for primary flats.

This independent study traces buying patterns and the impact of pricing on buyer preferences when it comes to residential transactions. In 2017, with the onset of RERA and GST, many builders revamped their strategies and operations resulting in a dip in new projects. According to the study, close to 40,000 units were launched in 2016 in comparison to 16,000 units in 2017 in Bengaluru and the percentage drop in sales came to 26% in 2017. The only silver lining was the total unsold inventory decreased from about 120,000 units to around 95,000 units.

Highlights of the study a��

• The market for plots, independent houses and resale flats is 3 times the market for primary flats (no. of transactions). Plots and independent houses contribute big numbers – 600 sft and 1200 sft are the most popular plot sizes. Plots in the three most popular sizes: 30×20, 30×40 and 60×40 sold almost equal in numbers to the total no. of primary apartments sold.
• 80% of all transactions for plots were Resale. This is markedly different from the behavior for apartments, where only 25-30% of the total apartments sold in Bengaluru were resale. This contrast may be due to the fact that traditionally Bengaluru has had more plots and independent houses and hence, there is a greater chance of resale transactions in this case.
• Primary or Secondary Property –The trends reflect an affinity towards independent plots, houses and resale properties in comparison to new flats.
• Buyer Profile: Resale Properties – The buyer of secondary (resale) apartments falls in the age group a�� 35 to 45+, mature and quality conscious, actively look for Returns on Investment and prefers Convenience over Pricing.
• Purchase/ Sale patterns across Bengalurua��s Geography a��
  • Independent houses – North Bengaluru and South Bengaluru* account for 70% of plots and independent houses sold in Bengaluru. *(Including Bengaluru rural areas: Devanahalli, Hoskote, Nelamangala and Doddaballapur)
  • Apartments a�� 65% of the total transactions for apartments were in South and East Bengaluru
  • South Bengaluru is overall a much bigger investment/ residential destination (as it accounts for a significant portion of apartments and plots)
  • East Bengaluru is preferred for apartments (over plots) whereas North Bengaluru is preferred for plots/independent houses over apartments.

A�

a�?Zippserv is currently in its third year of operations and over this period, we have been closely observing property transactions of Bengalureana��s to understand how we can bring in more transparency for buyers. 2017 was critical due to GST and RERA and the study shows transitioning trends that showcase the buyera��s sentiment and preferences. The sale of primary apartments typically gets all the visibility and hence Bengaluru is also mistaken to be a market for new properties or primary apartments, but we have on the contrary observed that the market for resale property and for plots/Independent houses is bigger than what was expecteda�? a�� adds Mr. Sudeep Anandapuram a�� Co-founder and CEO, Zippserv.

ZippServ Co-founder Debashish Hota adds, a�?The real estate market in Bengaluru is one of the most promising markets in the world. With the city being termed as one of the fastest growing cities in the world, it is no surprise that there is an influx of investors into this market. There is massive potential on offer to develop the city further and the real estate market will prove to be crucial in this journey. Like our study suggests, the city is growing proportionately offering interested home buyers a healthy mix of new flats, resale properties, independent homes and plots. We believe this is a healthy trend and is a positive sign for growth for the city.a�?

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