"Hitherto, demand was driven both by investors and end users. Currently there is a substantial drop in investor interest, but there isn't any slow down and demand is only flat", he adds.
All quiet in Silicon city
"No upward movement of prices has been evident in Bangalore's commercial business district for the last four to five months. Residential realty prices have stagnated due to an increase in supply, much more than the demand," said Samira Chandra Gupta, regional director, Colliers International.
Others concur with this view. "Prices have been generally flat. In many localities prices have fallen sharply. The reduction is greater in peripheral areas and to some extent in premium or super-luxury residential properties," said Shivaram Malakala, executive director, Habitat Ventures.
On the outlook for Bangalore, Collier's Gupta said demand from the IT sector may be impacted by the US slowdown, but sectors like pharma, R&D services and some manufacturing companies would continue to drive demand. Hardening interest rate over the past year have seen second and third home buys, which drove the markets, dry up.
Like elsewhere, prices are expected to remain bearish, with Malakala saying they could fall further by up to 10 to 15 per cent.
Image: Work is going on full-swing at a construction site in Hyderabad.
Photograph: Noah Seelam/AFP/Getty Images
Also read: Buying a used car? Check this out!
Powered by 
Advertisement
