The Rise of Luxury Housing in Bangalore
Bangalore’s real estate market has shown remarkable resilience and compared to NCR and MMR it has emerged as one of the strongest centres of growth. The luxury segment in particular has witnessed vigorous activity with many several high-profile launches over the last three years. While the luxury market in Bangalore mainly comprises high-apartments and villas it also includes layouts and plots in Bangalore. The definition of luxury is broad and variable but certain factors such as amenities, connectivity, infrastructure, size, builder and quality of the construction give a property its ‘luxury’ tag.
The pricing of a luxury property in Bangalore starts at Rs 6,000 per sq ft in upcoming areas and it can go up to Rs 36,000 per sq ft in Central Bangalore. As per CommonFloor data, Central Bangalore has seen highest concentration of luxury units followed by East and North respectively.
Reasons for growth
The growth of the luxury segment in Bangalore can be attributed to rapid urbanization and the growth of the information technology and financial services sector. Another driving force is the availability of land along with good connectivity to work places such as Outer Ring Road, Whitefield, Sarjapur Road, etc.
Bangalore also boasts of a growing number of high net worth Individuals (HNIs) that have exacting global standards when it comes to choosing a luxury property. Hence, developers are offering exclusive amenities and services along with international brand associations to attract this prime set of buyers.
Top Trends in Luxury Market
As the luxury housing market continues to grow and prosper in Bangalore, here are some of the key trends that have emerged in this sector:
- Despite limited availability of land, Central Bangalore was the centre of luxury housing activity and witnessed almost 80 per cent launches in this segment from 2012 to 2015. According to CommonFloor data, the key markets that saw launches in this zone are Richmond Road, MG Road, Cunningham Road and Vasanth Nagar.
- The rest of the 19 per cent launches in the luxury market in Bangalore were observed in North Bangalore in the same time period. Demand was also observed in East Bangalore, which includes localities such as C V Ramana Nagar, Whitefield, ORR-Sarjapur Road and is driven by the IT/ITeS sectors.
- Hebbal in North Bangalore has emerged as a key micro micro market for luxury housing. It has witnessed maximum number of new launches in the luxury segment, accounting for almost 60 per cent of launches.
Kanakpura Road and Banneghatta Road have also witnessed a high number of luxury villas launches. These areas will are expected to see future demand with the development of infrastructure in the form of the NICE Ring Road corridor.
