At a time when property experts are anticipating good times ahead in Indian real estate, Bengaluru property market will remain the top investment choice in 2017.
Bengaluru has recently been ranked number one based on investment prospects in a report prepared jointly by Urban Land Institute (ULI), along with PricewaterhouseCoopers (PwC). The report stated a strong shift towards two emerging Indian cities (Bengaluru and Mumbai) in the entire Asia Pacific region. In 2016, Bengaluru ranked 12th in ‘Historical Investment Prospect Rankings report’*.
Property analysts also predict that Bengaluru – the IT capital of India – is proving to be a bright destination for real estate investors. It is positive sign for Indian real estate that Bengaluru has emerged first in investment and development parameters for 2017. This is a big story for realty developers and end-users too.
According to R Rohit of brokerage firm RR Real Estates, “All thanks to booming civic infrastructures, new residential projects launch, establishment of Information Technology Services at large scale, BPO sectors that have been driving the Bengaluru residential as well as commercial property market for long”.
“We are very hopeful and happy that Bengaluru property market is gaining more prominence at the onset of New Year. This positive data will attract more and more investors as well as new home buyers to the market,” Rohit says.
Roundup 2016 for Bengaluru property market:
In a report released by real estate consultancy firm JLL India indicated that retail and commercial space are buzzing with many real estate activities while residential space is seeing less buyers. Bengaluru and Pune realty markets have emerged as new realty hotspot which will see price appreciation over time.
According to the report – retail spaces, especially malls are experiencing healthy rate of takeoff and occupancy, just because of favourable policies that have boosted the market after three years of drought. Policies such as 100 per cent FDI in single brand retail, relaxation for multi brand retailers and revised Model Shop and Establishment Act (that allows shops to remain open 24X7) have attributed for the rise in space offtake. The demand for retail space has picked up really well but there is a shortage from supply side. Market stature is experiencing robust demand but not many new malls are being built.
The real estate market of Bengaluru has been always the star performer in terms of highest counts residential units as well as office space absorption. In April-June quarter too, the city performed exceedingly well. About 48 per cent of the total units is accounted for Bengaluru, followed by Pune 21 per cent and Mumbai 16 per cent in this current quarter.
According to the report by Colliers International, India, The high volume of new launches during the second quarter was primarily driven by top six metro cities – Bengaluru, Pune, Mumbai, Chennai, Gurugram and Noida.
According to the latest report released by real estate consultancy firm JLL India also, Bengaluru and Pune would be the two markets which would see a favourable price rise over a period of time. Bengaluru’s performance is noticeable as new launches have almost doubled from first quarter at nearly 11,500 units at the end of April-June quarter.
Bengaluru Metro Phase II to boost realty
Taking another step towards hassle free connectivity within Bengaluru city, Bangalore Metro Rail Corporation (BMRC) is working on expanding the proposed Namma metro network through phase II. The new phase of metro is likely to be completed by December 2020. Ahead of this, the real estate fraternity looking forward and say investment in property along the route will pay rich dividends. The demand for both residential and commercial property in the region is likely to increase.