Localities in Bangalore-2013: A Recap
Previously hailed as the pensioner’s paradise, the laid back city of Bangalore has changed itself into a cosmopolitan center. Backed by the unprecedented development of the BPO and IT industry, the Silicon Valley of the nation has been at the helm of a real estate boom, since last few years. Proposed infrastructural plans, relatively high-income levels, and formation of the IT parks has been the major growth drivers for the key localities in the city. Below-mentioned is a brief description of the localities in Bangalore that has been a topic of discussion for the developers and investors uniformly:
Localities with higher capital appreciation
The central and off-central areas in the city have registered a price appreciation in the range 4-6% in the high-end segment, on accounts of lack of space availability. An upward rise in the capital values for high-end units was further noticed in the North and East locations of the city, because of on-going infrastructure developments and proximity to IT hubs. For south west and off-central locations, the mid-end segment witnessed an appreciation in capital values in the range of 3-4%. Sarjapur road, Hennur road, Electronic city, Thanisandra, KR Puram and Whitefield are some of the localities in Bangalore that has been subjected to price appreciation in 2013, ranging between Rs 6500- Rs 10000 per sq ft.
Localities with lower capital appreciation
As per market reports, west Bangalore did not manage to lure good many real estate developers, since it falls short on the count of good social infrastructure. Being dominated by industrial growth, the region did not encounter much residential developments in 2013, in comparison to other micro-markets. The demand for housing units in the this part of the city has been substantially low, on account of being located far from the IT/ITes corridors.
Some of the areas in the city that are cited as areas with less capital appreciation by the developer’s community in 2013 include-Koramangala, JP Nagar, Indira Nagar and Jayanagar. These areas are expensive and are not suitable for investors with small budgets. In addition to it, MG road and its nearby areas also surpass the reach of the common man and hence, lacked appreciation in 2013.
Areas with good rentals
The annual capital appreciation for apartments is likely to rise above the edge in the next 5 years by 13% (minimum) while the rentals by 6%. Albeit, the total residential market of the city is booming, Ulsoor has registered a hike of 23% rise in rental values in the second quarter of 2013, while Sarjapur road recorded a rise of 13% hike. South Bangalore has witnessed an increase in rental values by 25%, while North Bangalore has registered an increase of 15%. Apartment appraisals have been tagged as one of the most reliable factors for real estate growth in 2013 and few localities offer the best rental within Bangalore. Presence of IT/ITes sector has improved the micro-markets of Sarjapur road and Hebbal. The office markets of Whitefield and Outer Ring Road has, and will continue to experience stable rentals in the days to come.
