Bogged down by fewer transactions, liquidity crunch and project delays, the real estate market across the country has been on a sticky wicket. Another round of monetary policy decision leading to a further rise in home loan rates, has only added to the woes.
In southern India, Bangalore has been quick to pick the cues.
According to real estate consultancy company, Cushman & Wakefield (C&W), rentals across all micro-markets in Bangalore's residential segment have begun to stabilise.
Capital values, however, have increased marginally in a few micro-markets, since the last quarter. The coming quarter is unlikely to witness any major change in either capital or rental values.
"The present economic and a volatile stock market have changed the outlook for investment options in this sector. The market now is suited for long-term investors; more so for end-users than investors looking at short-term capital gains," says Anurag Mathur, joint managing director (India), C&W.
Real estate brokers in the city say demand may have slumped in certain pockets but overall there is more of a stabilisation than slump.
"Prices have stabilised and not gone down. The city is witnessing more of a correction in terms of demand," says Radha Mouli, a real estate agent. Industry observers say price corrections would be seen only after a couple of quarters. There has been little or no price variations in either traditional residential areas or newer locations.

High end
Prices of high-end residential units, including premium villas and luxury apartments, with floor areas of about 3,000 sq ft to 5,000 sq ft, range from Rs 8,000 per sq ft to Rs 20,000 per sq ft, depending on the location.
Prime localities continue to be Central Bangalore, encompassing Lavelle Road, Off Palace Road, Off Cunningham Road, Ulsoor Road and Richmond Road. Rates here range between Rs 15,000 and Rs 20,000 per sq ft.
Capital rates in these areas have not fluctuated much, according to the C&W report.
The IT hubs of the city command a price of Rs 8,000 to Rs 10,000 per sq ft. Koramangala, Outer Ring Road and Whitefield are some of the areas that come in this bracket.

Mid range
Property prices for units, ranging between 1,700 sq ft and 2,500 sq ft, could cost anything from Rs 800 per sq ft and above Brunton Road, Artillery Road, Ali Askar Road and Cunningham Road are the most expensive areas.
Citing rising input costs, the Karnataka chapter of Confederation of Real Estate Developers’ Association of India (Credai) increased rates of all projects by 3 per cent to 8 per cent with effect from June 10.
However, real estate agents in Bangalore are optimistic about the property market’s future.
"There would always be a demand here because of the influx of infotech professionals into the city and a huge migrant population," Mouli poins out.
Experts expect an additional demand for 50,000 residential units in Bangalore by the end of the year.