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Anjana Chandramouly

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Bangalore, June 7 The residential mid-market segments across markets in the South are expected to see a correction in the coming months.

If estimates are to be believed, about 1.5 lakh residential units, across budget segments, will be ready over a period of three years in Bangalore alone.

“The residential luxury or mid-market segment (Rs 50-75 lakh) will see a 10-15 per cent correction in price, since there is a huge supply coming into the market over a period of time,” said Mr Santosh Martin, Chief Executive Officer, DivyaSree Developers, a Bangalore-based realty company.

“In markets such as Chennai and Hyderabad, there will be a correction in micro-markets such as Old Mahabalipuram Road and Hi-Tech City respectively, as there is an over supply,” he said.

The Whitefield micro-market in Bangalore had seen a correction only recently, he added. However, he felt that rental values never went up in Bangalore, as compared to the other two Southern cities, while it was only the capital values that went up.

Mr Martin said that demand for IT space continued to be good in Whitefield, where DivyaSree Developers has a 70-acre SEZ project. The project has 6 million sq ft of IT space. The company has another SEZ project, a joint venture with Nuziveedu Seeds Ltd, under construction at Hyderabad, which will have 4 million sq ft of IT space, 2 million sq ft of residential space and 7.5 lakh sq ft of hospitality space. The project would be complete by 2012.

The company has a land bank of 800 acres across Bangalore, Chennai and Hyderabad. These lands would be developed in the next 5-7 years, Mr Martin said. The company also plans to focus more on residential development in the future.

“In the next six months, we would be launching about five projects in Chennai, Bangalore and Hyderabad in the luxury segments. We are in the process of planning and pricing,” he added.

Total outlay for these projects would be Rs 1,300 crore, “to be funded mostly from internal accruals and booking,” Mr Martin said. It currently has a residential project in Bangalore coming up at Sarjapur Road. The 387-luxury apartment project will be ready by end-2008.

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