Bengaluru- the IT capital of India – is proving to be a bright destination for real estate investors. Most new home settlers find this city a perfect place to live and retire later.
It is a good time for the Bengaluru real estate market. In a recent report released by Colliers International, India for Q2 2016; Bengaluru stood first in terms of new residential launches and office space absorption. In April-June quarter of current financial year 24,000 fresh residential units were launched in top six metro cities with Bengaluru witnessing the maximum new launches.
This has changed the sentiments of new home buyers and the demand for residential units is on the rise and will remain consistent for coming years, say property experts. The property prices witnessed an increase as the supply and demand ratio has been neck to neck in the city.
According to the latest report released by real estate consultancy firm JLL India also, Bangalore and Pune would be the two markets which would see a favourable price rise over a period of time.
Om Chaudhry, founder and chief executive officer of the FIRE Capital Fund, says, “Bangalore is a rapidly developing with improved social and civic infrastructure and employment opportunities. The residential property market in Bangalore, has observed a stable phase as compared to other metro cities. Realty market here is comparatively mature than other regions of our country. Some of the key infrastructure projects like the elevated expressway, Bangalore-Mysore Infrastructure Corridor (BMIC), Metro Rail and proposed Peripheral Ring Road will come out to be positive and supportive of Bengaluru real estate market. There are many areas which have emerged across the city and are good for both end-users as well as for investors. Whitefield in Bangalore is such as a remarkable area, becoming an apt locality due to good connectivity, infrastructure and propinquity to work places. Electronic City is another good option for residential properties as the region is infused with world class facilities and is housing number of IT companies. Surajpur road is a booming realty destination with closeness to established IT hubs like Koramangala, Electronic city, Whitefield etc. This locality is emerging as a rental hub with great connectivity options. Areas such as Bannerghatta Road, Bellary Road, Hennur Road, HSR Layout are also promising for home buyers and investors who are eyeing for next big story in Bengaluru”.
Top localities by price
According to Happykeys data, the top localities Bengaluru are Electronic City, Whitefield, Sarjapur Road, Hennur Road, HSR Layout and Bellary Road. Though Sarjapur Road has the highest average price (Rs. 4,000 – Rs. 7,000) per sq ft , Electronic City has witnessed the steepest rise with 25 per cent hike in property prices in last two years.
All these localities are in high demand among new home buyers and investors due to high supply of all kinds of property. It is noticeable that Electronic City is one of the most happening real estate market of Bengaluru and has lower average price (Rs. 2,900 – Rs. 5,000) per sq ft.
All six localities have been given good ranking in terms of key livability parameters. The civic infrastructure of these areas are almost well developed. All daily needs of residents are available in proximity to the locality. Shopping complexes, entertainment hubs, schools, educational institutions, health centers, restaurants are established within the locality itself. The railway station is easily accessible from these areas.
They offer an ideal ambiance for IT professionals, families, senior citizens and young couples. A good location is important when buyimh a home. New home buyers should check thoroughly for discounts also. Real estate builders are offering good deal around this festive season.
Residential inventory available
Here’s is a summary of residential units available with their prices. In Electronic City, a 1 BHK flat will cost between Rs 15 – 40 lakh. In Whitefield, the same will cost Rs 25 – 42 lakh and in Sarjapur you need to pay Rs. 19 – 60 lakh.
A 2 BHK flat will cost between Rs 25 lakh – 1 crore in Electronic City, Rs 45 lakh – 1.5 crore in HSR layout and Rs 21 – 90 lakh in Bellary Road.
While on the other hand 3 BHK apartments are bit more expensive in these areas. In Electronic City a villa and 3 BHK flat costs around Rs 70- 80 lakh.
Real estate market trends
Experts say, Bengaluru has been always a star performer in terms of new residential launches and inventory absorption. The balance between demand and supply of the housing unit in the city remains balanced. The real estate market of Bengaluru is stable and has steady prices. The city has neither experienced violent ups and down nor a recession which could generate negative sentiment in home buyers or investors.
“A high proportion of new launches was concentrated in the peripheral areas of existing commercial hubs in the city. In terms of location, Devanahalli, Budigere Cross and extensions of Kanakpura Road comprised a significant share of total new launches”, says Chaudhary.