It seems the demand for high end apartments are being redoubled in Bangalore City. This demand enhance that the real estate market in Bangalore becomes saturated. The real estate market in Bangalore is driven by millionaires from IT sectors. Bangalore has more than 10,000 dollar millionaires in that most of them are investors.
Bangalore is the third largest market for luxury property sales and product offerings After Mumbai and NCR. For high net-worth individuals (HNIs), it is also the third largest real estate investment hub but tops the list in terms of investments from NRIs looking at settling down in India.
A report by JLL India, an international property consultancy firm says, when it comes to luxury homes units priced above Rs 5 core, Bangalore is setting benchmarks to emerge as the country’s top luxury home market.
The three locations are Bangalore East (Outer Ring Road area), South Bangalore and North Bangalore. The best segment for second home in Bangalore falls in the bracket of Rs 1.25 crores to Rs 2 crores.
As per my knowledge, South Bangalore gained momentum after the development of NICE Road. This had made the connectivity from Electronic City to South Bangalore easy. The mid segment market is doing good in South Bangalore and due to availability of land parcel more launches are happening.
A boom in the luxury market and seen an upward trend because Bangalore has more High Net Worth Individuals who are buying luxury villas and apartments, who belong to the top-line IT professionals and other business. Moreover NRI coming back to India are the potential buyers of luxury units.
In last couple of years, East and North Bangalore were the hot property destinations but in last couple of months the focus have turned to South Bangalore. What can be the reason? Please comment.
Other emerging micro-markets in the West Bangalore, which has registered a stable demand include-Vijaynagar, Tumkur Road and Magadi Road. The developing metro line, which is expected to take connectivity of West Bangalore a notch higher, will fuel a surge in property demand in the days to come and this can be authenticated seeing the real estate market of Kanakpura road, which is flourishing due to the Metro connectivity
In regard to residential real estate market, Sahakar Nagar, Hebbal and RT Nagar have emerged as the best performing markets in the northern counterparts of the city. As per property consultants, such locations have experienced high demand and appreciation for residential units in the past few quarters. Proximity to BIAL, bolstered up infrastructure and excellent connectivity in the region have paved the way for North Bangalore to crystallize into a marketable residential destination.
In comparison to other South India cities like Hyderabad or Chennai, the real estate demand in Bangalore has been fetching good numbers. Much of it can be attributed to the burgeoning IT industry, availability of space for development and political stability. Such credentials make the city real estate friendly, encouraging key developers to come up with new projects.
Bangalore has emerged as a cosmopolitan city, turning a new leaf in its journey. Coming close to the heels of other young urban sprawls, Bangalore’s 90% population sums up to the working class, employed in the 31 industrial hubs that include PSU’s along with Bio-technology, IT/ITes and Engineering companies amongst others. PE investment in the Bangalore real estate market that rose to nearly Rs 2000 crore, in the Jan-Sep 2013 span, further makes the realty sector of the city more promising than ever.
Factors such as incorporation of the IT parks, proposed infrastructural strategies and high income levels. One of the appreciable facts of the real estate market of Bangalore is that the outskirts are also growing rampantly, making the projects available ‘a good buy’ for investors.
2013 has been an eventful year for the realty segment of Bangalore and 2014 is likely to be a game changer for the developer and investor’s community alike. The RBI with its new policies is expected to phase out inflation and push the city towards economic growth.
The real estate market in Bangalore has been up to snuff in 2013, in comparison to other urban townships, despite inflationary pressures and the economic downturn. In the financial year 2013-14, the city accounted for 18% of the overall nationwide sales, highest in its category after NCR. The trend is expected to keep rolling in 2014 and help Bangalore emerge as the most profitable real estate market of recent times.
Typically, 2 and 3 BHK apartments have garnered the interest of the investors in 2013 in the city. The overall turnover stood at Rs 1271 crore and Rs 1978 crore for 2 and 3BHK apartments in Bangalore, during Q2 2013-14.
In 2014 we home buyers are expecting that land parcels will be available at cheaper cost, fast approvals, a stable government, infrastructural development and availability of home loans.
A stable government in place by the mid of 2014, will ensure a much more robust economic environment than ever. This will act as a stepping stone for the realty sector of the city and will help it reach new milestones.
Apart from the existing real estate corridors which has already witnessed new launches, areas such as the South-East, North, North-East Bangalore are going to see an increase in the number of launches. :) :D
As per market experts, 2014 will be the year of ‘ready for use’ land parcels at easy rates,infrastructure growth, quicker approvals, stable government and the availability of loans. In addition to it, easing of the FDI norms will further act as a boon for the real estate sector of Bangalore to boom and thrive.