Property in Bangalore Rising and Shining
When the major cities of India are facing a crunch in realty market, Bangalore is the only one that seems to remained unscathed out of all this. In fact, the real estate's scenario in the current year seems to be promising for end-users. As against the other parts of the country that are undergoing an imbalance in demand-supply ratio, such is not the case for the electronic city. Real estate in Bangalore is estimated to see a huge demand for residential homes in the coming 5 years. As per the research by Cushman & Wakefield, the demand for housing would be maximum in eight major cities and one of them is Bangalore. The inquiries would be mainly for MIG flats rather than LIG ones.
The excellent infrastructure for the proliferation of IT sector is expected to raise the demand by more than 100%. The IT industry itself has grown by about 11% this year. As the absorption rate of Bangalore flats rises, the number of new launches would also increase accordingly. Though, at present, there are several inventories that are lying vacant, they would be able to fulfill the need of absorption for some time. In the first quarter of 2013 itself, the absorption rate came up with positive numbers. This trend is expected to continue in future also. The maximum acquisitions have been for the properties above 35 lakhs.
The low prices have always bugged property in Bangalore. Though the rates are highly undervalued if compared to the prices in Mumbai or Delhi, there has been a definite increase in the per square feet index in 2013, as compared to 2012. The last year, the value stood at Rs. 3720/ sq. ft., this year it has improved to Rs. 3900/sq. ft. While the developers, who are generally known for appreciating the prices, have not done so in Bangalore. This has happened in spite of the fact there has been appreciable increase in the cost of inputs.
Another trend worth noticing is that the High Net Worth Individuals are displaying tremendous interest in the peripheral localities of this city. Whitefield, Outer Ring Road, Tumkur Road, Koramangla, and Jayanagar are a few areas where their interest into investment particularly lies. High street locales like Koramangla, Sarjapur, and Electronic City are also the localities that have garnered interest of HNIs. Their target range lies between Rs. 15000 sq. ft. to 50000 sq. ft.
So, the prospects of real estate seem promising for the city and in the years to come, it is expected to continue perform well.
The excellent infrastructure for the proliferation of IT sector is expected to raise the demand by more than 100%. The IT industry itself has grown by about 11% this year. As the absorption rate of Bangalore flats rises, the number of new launches would also increase accordingly. Though, at present, there are several inventories that are lying vacant, they would be able to fulfill the need of absorption for some time. In the first quarter of 2013 itself, the absorption rate came up with positive numbers. This trend is expected to continue in future also. The maximum acquisitions have been for the properties above 35 lakhs.
The low prices have always bugged property in Bangalore. Though the rates are highly undervalued if compared to the prices in Mumbai or Delhi, there has been a definite increase in the per square feet index in 2013, as compared to 2012. The last year, the value stood at Rs. 3720/ sq. ft., this year it has improved to Rs. 3900/sq. ft. While the developers, who are generally known for appreciating the prices, have not done so in Bangalore. This has happened in spite of the fact there has been appreciable increase in the cost of inputs.
Another trend worth noticing is that the High Net Worth Individuals are displaying tremendous interest in the peripheral localities of this city. Whitefield, Outer Ring Road, Tumkur Road, Koramangla, and Jayanagar are a few areas where their interest into investment particularly lies. High street locales like Koramangla, Sarjapur, and Electronic City are also the localities that have garnered interest of HNIs. Their target range lies between Rs. 15000 sq. ft. to 50000 sq. ft.
So, the prospects of real estate seem promising for the city and in the years to come, it is expected to continue perform well.
