Hyderabad, Bengaluru Remain Hot Property Markets In 2025: Sattva

After some slackening in the residential market, realtors are expecting good growth in 2025. Especially, demand for residential properties in major south Indian cities like Bengaluru, Hyderabad, and others remains strong. Many real estate players are planning to launch multiple projects in the residential segment this year. In a conversation with the Bizz Buzz, Karishmah Singh, president - Sales, Marketing, and CRM of Sattva Group said that the real estate company is coming up with several projects across multiple cities in India. In Bengaluru, several projects will be launched in north Bengaluru as the region sees inflow of investments by multinational companies coupled with presence of the international airport. She said that Sattva Group doesn’t have any concern with regard to inventory as all its new launches get sold during pre-launch period. She is of the opinion that customers’ preference is changing with many demanding for better and bigger homes with integration of technology

How is the overall demand environment in the real estate industry, especially in the residential market? Can you provide a brief perspective in this matter?

If you see the big picture, real estate industry is really booming. We have already seen launching of hundreds of crores of property in north India, which have seen robust intake by customers. So, there is good appetite for in the Indian market. If you see, the kind of pricing Indian cities like Delhi and Mumbai commands, is comparable to global cities. Pricing of real estate properties in Delhi NCR and Mumbai has been comparable to many developed markets in western countries. So, these is a kind of boom, which is seen across India. There is an appetite. Customers are well-versed, well-travelled and they know what they want. Of course, they're ready to pay that kind of price. Lifestyle has changed. People are demanding what they want. And aspirations have grown. That is what is happening in the overall residential market in India.

Can you provide some views about real estate market in south India?

If you look at South India, we feel that prices are still very reasonable. When we take into consideration cities like Bengaluru & Hyderabad, Hyderabad is still a little higher (in terms of pricing), but Bengaluru is still in a zone where the customers would see an appreciation. In last few years, we have seen almost 40 per cent upsurge in the prices. The infrastructure growing at a faster pace. We see North Bengaluru is coming up in a bigger way because the CBD (central business district) area is saturated. If we compare RoI (return on investment) across cities of India, Bengaluru has the highest RoI. The Bangalore today is commanding the highest in terms of the ROI in terms of rental return. Most development in infrastructure is coming towards the North Bengaluru because of the airport and upcoming metro rail. And compared to CBD, these areas have anywhere between 20 per cent to 40 per cent price differentiation, which means the same size of apartment is costing lesser in these areas.

We have seen fall in sales of residential properties across India and cities like Bengaluru & Hyderabad are no exception. How is the demand environment now? Have sales seen an uptick in the last quarter?

We all know that during last quarter, the share market had seen one of steepest falls in recent time. When such thing hits the market, people become a little sceptical. Bengaluru as a market depends on ESOP that employees liquidate. Where people liquidate their ESOPs, and they put it in the real estate market because capital gains and other taxation come into picture. So, when the market is down, it has a direct impact on ESOPs. Because if you are holding the shares, you would not want to liquidate it right now. Because of that, in the last quarter, we saw that people had deferred their purchase decisions. It was not that they had stopped coming to the site. Customers were engaging with the sales team. But they were asking time to finalize the deal. That was the industry trend. However, for Sattva, Q4 was not slow. We achieved what we were expecting. Overall, price appreciation in Bengaluru market was around 15 per cent, whereas in Sattva, we grew up by 25 per cent. So, Sattva’s average for residential projects was 25 per cent (in terms of price appreciation).

How do you see the sales growth in 2025 for Sattva Group? Will it be higher than last year? Can you give some perspective on new project launches?

We have planned a lot of launches mainly north Bengaluru. Because we see growing demand in this part of the city. In the next two to three years, five lakh job opportunities are going to be created in this zone as many aerospace and biotech facilities are opened in this area. Global manufacturing major, Foxconn is planning to set up its manufacturing facility in north Bengaluru region. Around 30,000 employees are going to work in this facility. So, as many companies set up their facilities in north Bengaluru, demand is going to be robust for residential properties in this region.

How many cities does Sattva Group have presence in residential housing space? Can you throw some light in this aspect?

Apart from Bengaluru, we have a major presence in Hyderabad. We are also in Coimbatore and Goa. We have several projects in Mumbai. We are coming up with projects in Pune. So, our portfolio is spread across several cities. All total, we have presence in seven cities across the country.

We have seen several projects launches my real estate players. But due to slowdown in demand, inventory has increased? How is the case at Sattva Group? Can you throw some light in this aspect?

There are not many inventory is concerned, my sense is that there is not much inventory in the ready to move residential properties across India. As far as Sattva Group is concerned, we don’t have such concerns. When we launch a project, more than 80 per cent of the property gets sold during pre-launch. We get a lot of referral buying. We have a lot of our customers buying a second home, and are upgrading their existing homes. So, we have a lot of such kind of customers. And the best part has been that Satva has always seen a culture of end users. So, our forte has been our customers, who invest on us and once they invest, they stay with us.