Bengaluru, Chennai and Kolkata Property Market Keep Pace With Buyers’ Demand
There must be a perfect match between demand and supply if a market has to keep going. Real estate, by no means, is any exception. If developers, for instance, are able to supply according to the popular demand, there would be no question of unsold inventory. However, that is easier said than done. Making quick changes in supply of homes (something that a great deal of time, money and resources to get built) as soon as the demand changes is child’s play. However, some cities are doing better than others, data show.
Finding a match
Bengaluru, Chennai and Kolkata are the cities that are trying to balance the demand and supply dynamics better than other cities, a joint study by Housing.com and Makaan.com that compares numbers between January-March 2017 and the same period this year shows.
In 2017, the average size demanded in Bengaluru was 1,492 square foot (sqft). The market countered it with a supply of homes in the size of 1,426 sqft. In early 2018 however, the market has tweaked to appease new homebuyers. While the demand has been registered for homes sized 1,410 sqft, the supply stands at 1,428 sqft, which is close enough.
In Kolkata, buyers have been asking for 1,085 sqft-homes and there is a marked improvement in catching up with the demand. In 2018, the supply on an average is of homes sized 1,180 sqft homes, a stark contrast from what it was in 2017, when the demand was for 1,053 sqft but the supply stood at 1,515 sqft on an average.
Southern city and investment hub Chennai has also done well. After a period of imbalance in 2017 when the supply side stood at 1,585 sqft while the demand was only 1,130-sqft homes, the supply is closer to demand now. While the demand is for homes with an average size of 1,185 sqft, the supply side has managed to lower down to 1,210 sqft-sized homes on an average.