Emerging trends the Real Estate Growth in bangalore
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Emerging trends the Real Estate Growth in bangalore

By siliconindia   |   Thursday, January 2, 2014   |    1 Comments


Bangalore : Bangalore, is the capital city of Karnataka with a population of around 8.4 million making it the 5th most populous urban agglomeration in India. It is also known for its supremacy in the field of Information Technology and is spearheading towards to become a center of excellence for residential real estate mainly because of the influx in demand from IT/ITeS sector. Over the last two decades, Bengaluru has strengthened its position as the leading IT/ITeS destination amongst top Indian cities. In 2012, Bengaluru commanded a 30% market-share of all of the commercial (office) real estate absorbed across the top seven cities (Delhi NCR, Mumbai, Pune, Chennai, Hyderabad and Kolkata). The year 2013 saw marginal decrease in demand due to overall economic sentiments but nevertheless Bengaluru witnessed approximately 8.00 million sq ft of commercial office space absorption till date. In last two years, both the years Bengaluru has observed a greater commercial absorption share than other preferred office destination such as Mumbai and Delhi NCR. The major contributor of this demand remains the IT/ITeS sector. If we talk micro market wise, -central location such as MG Road, Langford Road, Richmond Town, Lalbagh Road, Vittal Mallya Road and Residency Road consist of mostly independent office buildings. We anticipate increased redevelopment activity in this market in near future. The return potential for capital investments is high because of restricted supply due to paucity in land availability. In the recent past, the off-central micro-market such as Indiranagar, Jayanagar, Koramangala, Malleshwaram, JP Nagar and Rajaji Nagar witnessed individual office space development. Proximity to the CBD, excellent social infrastructure and limited supply of quality space are the key reasons for good performance of this micro market. Rental values in Commercial leasing prices range from INR 60 to INR 75 psf depending on location. Recently, peripheral markets such as the Outer Ring Road (ORR), Whitefield, Bannerghatta Road, North Bengaluru, Hosur Road and Electronic City emerged as promising Commercial locations. The reasonably planned development, affordable prices, proximity to the IT/ITeS hubs and social infrastructure built around these micro markets are the key factors driving demand in these areas. An active IT/ITeS industry has emerged as the key demand driver in the ORR area. Recently, Sarjapur Road has experienced increased buyer interest because of its easy accessibility to the outer Ring Road, the most preferred IT/ITeS destination in Bengaluru. This micro-market witnessed numerous launches during the last year and the Rentals range from INR 45 to INR 55 psf for a warm shell space. In addition, an increased interest is being observed in the North Bengaluru micro-market owing to the development of the KIADB Industrial area and a few Special Economic Zones like Hinduja and Karle SEZ, proximity to the international airport and a number of physical infrastructure projects expected to be commissioned in the near future in this area. In fact North Bengaluru has emerged as a favorite destination for retail HNI and NRI investors after the commencement of the Bengaluru International Airport in 2008. Development in this region is primarily in the form of apartments for mid-range buyers, while villa and row-house developments are also abundant in the luxury category. Hebbal, Yehlankha and Hennur and Thannisandra Roads, located in the north-east region of Bengaluru, have emerged as popular affordable investment destinations. Their connectivity to the CBD and the IT/ITeS catchments in north-east Bengaluru and affordability are the key drivers in this area. With the increase commercial activities in the city, both commercial & residential real estate sectors are prospering well. The real estate in Bengaluru is proving to be a huge success is because of the decent/promising infrastructure, amenities in close call and good number of projects in prime locations. Multiplexes, gated communities, & construction with excellent architectural designs have added to the success story. The real estate success in the city is a symbol of the investor satisfaction. Moreover, builders have delivered the projects keeping in mind the needs & demands of the potential buyers. Appreciable fact is that even the outskirts of the city is developing at a rapid rate, making the projects a good buy throughout the city.

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