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The real estate market in Bangalore which has been to an extent insulated from the weak demand uptick across in India, is starting the feel the heat. According to real estate advisory firm CBRE, Bangalore witnessed a decrease in sales of residential property in H1, 2012. Due to a slowdown in demand and rising cost of funds, many projects showed little progress in construction. Consequently, projects nearing completion in South East and North Bangalore witnessed an increase in capital values by nearly 10–15% during the first half of 2012. The urban sprawl of the city continued to develop as leading developers had started acquiring the Northern and South-Eastern regions, with leading developers acquiring large land parcels in these locations.
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