Property values in Bangalore all set to spike
Real estate activities in Bangalore always make the headline in the property market of the nation and this time it is expected to make the developers and investors sit up and take notice. Tagged as one of the fastest growing real estate markets of the nation, property prices in Bangalore are all set to soar and climb up.
More than 8 out of 10 localities in Bangalore registered a sudden hike in property values during 3Q 2013-fact corroborated by the key property consultants. In addition to it, according to the NASSCOM (National Association of Software and Services Companies), the IT/ITes sector is likely to stretch out by 12-14% in the present fiscal year(2013-14) and is expected to rise above the cliff in the next 2-3 years. This would escalate the property values in the city in a blink.
What consultants had to say?
As per property consultants, trend indicated by the Housing Sentiment Index reflect positive buyer sentiments in Bangalore. Going by the market reports, the Q3 of 2013 witnessed a 17% rise in property transactions. This can mainly be attributed to the revision of the guidance value in 2013. Experts are of the opinion that the revision will spur-off the property prices by minimum 10% in the days to come.
Over the years, Bangalore has turned out to be the favorite destination for both international and domestic (IT/ITes) companies, setting up offices in locations such as Electronic City, ITPL, EGL etc. This has played a key role in luring a well-paid work force, which in turn has escalated the property prices significantly.
Bangalore Namma Metro has also stood out as another crucial factor that has chipped in to a great extent in the rise in property prices. Properties within the 2Km radius of the metro has witnessed a price appreciation beyond imagination and is likely to increase in future.
Localities that witnessed the hike
As per the market data of Q3 2013, except Magadi Road, Koramangala and CV Raman Road, all other micro-markets in the city witnessed a sudden surge in capital values, which contributed to the overall growth of the city. Hormavu, Sahakara Nagar, Kanakapura Road, Varthur and Marathahalli are some of the localities in the city that has been subjected to a price hike of 9-10% in the Jul-Sep 2013 quarter.
Brookefields, Rajarajeshwari Nagar and KR Puram too have encountered a steep rise of 6% in capital values in the quarter. All such areas are located near the ORR or are clustered near Whitefield. Market research concludes that growth in the city is mainly inclined near the IT hubs since the demand for residential units comes from the IT professionals.
