New residential hubs in Bangalore emerging in periphery
With the city broadening its horizons and touching new boundaries, the residential market in Bangalore has risen to the occasion significantly, in order to home the mounting working population.
As big multinational corporations are making their presence felt in far-off regions, the demand for residential properties in these belts has hit the roof. Reasonable price of the land has fuelled the emergence of affordable housing segments to cater to the growing demand of the first time home-buyers in the city.
According to Cushman and Wakefield, the peripheral locations in South Bangalore (like Anekal Main road, Chandapura and Kanakapura road) were the first among the other localities in the city to experience a slew of affordable housing projects. This is due to the reason that these areas are near at hand to major industrial belts of the city namely Attibele, Hosur, Jigani and Bommasandra and Electronic city.
Rise of affordable housing segment
The whole idea of affordable housing has experienced a change of scene in the last few years, in regard to price, product and the number of options. With time, the residential market in Bangalore has eyed the affordable segment as one of the distinct product offerings.
According to market reports, the affordable housing segment has gained all the attention of the key developers of the city resulting in numerous projects at peripheral locations. Focusing on this housing segment has resulted in boosting the space utilization of residential properties in a flash, offering additional facilities in such projects.
Market statistics confirm that residential units, that were sold within the range in Rs 15- Rs 20 Lakh in 2009-10, have risen to several notches up because of high labour and construction expenses and have stood up to Rs 40 lakh. Since lower land cost curbs the input cost significantly, the peripheral regions in the city have felt the presence of a number of prominent developers of late. Property consultants further confirm that the high disposable income of the working class strengthens the purchasing power of the buyers to avail a home at 40 lakh easily in such peripheral locations.
Reasons for growth
The rise of affordable segment Bangalore has been fuel-injected mainly by two essential factors:
- Ascending real estate prices of the high and mid-segment residential projects, centralized in suburban and central areas
- Continued demand for residential projects in this segment
With the growth of the working class in the city, the demand for affordable residential units is going to go through the floor. According to market estimates, nearly 40% of the total real estate launches in the city are classified in the affordable segment. Such a demand is mainly driven by the growing number of IT/ITes professionals in the city who have a high disposable income.
Research by JLL reveals that there are certain areas in Bangalore which stand out a mile and have a relatively high concentration of affordable houses. Such locations may include Pennaya road, Madras road, Sarjapur road, Attibele-Anekal road, Electronics city etc. A single bedroom in such area measures around 500-600 sq ft.
The industrial belts of Hosur road and electronic city have triggered the budget housing segment in Bangalore. Furthermore, the Kumbalagodu-Bidadi industrial belt and accessibility through Nice Ring Road have given impetus to the growth of housing projects in the peripheral locations like Uttarahalli Road, Mysore road and Kengeri.
