Bangalore registers 91 thousand properties in the last 4 months! But, is it really time to rejoice?

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After quite some time, Bengaluru is in the news again. In the last 4 months, Bangalore has recorded a phenomenal amount of property registrations, 91,504 to be precise. Those many property documents have been registered in the various registrars' offices in and around the city! Awesome!

The registrars have raked in INR 1,045.10 crore from Bangalore alone. Last year, the city generated INR 769.27 crore as registration fee with 70,942 property documents registered. Note that a large number of property conveyances have been on the city’s outskirts, especially along the Outer Ring Road, around Hebbal, Whitefield, Yelahanka areas. Now that is a welcome sign for a city struggling with over supply for a long time. A drive down along Mahadevpura - ITPL - Whitefield - Marathahalli could earlier put into a person's perspective what an over supply of real estate could really look like.

But do the increasing number of registries in Bangalore really mean a growth in real estate sales? We, at Indian Real Estate for Dummies think that may not necessarily be true. Typically, registries happen after an average period of three to five years from the time of the actual property sale for all new constructions. In Bangalore and the concerned areas of the city mentioned above, about 90% of all registrations happening now would be for new properties that have been developed and handed over in the last two years! The sales would have thus happened between years 2005 and 2008! So there is no immediate reason to rejoice. Ask the Bangalore developer and you may get the same feedback. Sales continue to be slower than last year. However, in micro markets where local conditions are being met, sales figures are higher.

Nevertheless, it is a welcome sign and we would love to see the silicon valley of India roaring again when it comes to real estate sales. We will, keep you posted!