What Makes Bangalore India's Leading Realty Market?

According to recent data published by National Housing Bank Residex, Bangalore witnessed 4.5 per cent price rise in residential properties in the last quarter of financial year 2012, compared to the same period last year. Whereas, Mumbai and Delhi have seen 9 percent and 33 percent price rise during the same period.

It is believed that Bangalore is an IT hub and hence investors are capable enough to make high investment on property, which has transformed Bangalore into robust real estate market of the country.

Sanjay Dutt, executive managing director, South Asia, Cushman & Wakefield, an international property consultant stated that "Many IT companies such as HP, IBM and Texas Instruments have large bases in Bangalore. Whenever they win global contracts, the local markets in which they are located benefit, as the firms shift work here," reports Business Standard.

On this note, K Madhusudan, co-chief investment officer, Azure Capital, a Bangalore-based realty fund manager cited that "Both global IT majors such as IBM, Oracle and Cisco and domestic companies are hiring aggressively. That is driving the growth of residential and office markets in the city."

"I believe Bangalore will be able to maintain a good sales momentum. I expect land costs to remain stable and we will be able to offer good products at reasonable rates," according to Irfan Razack, chairman and managing director of Prestige Estates, a Bangalore-based developer.

Jasuja of PropEquity said that "I think the trend (Bangalore leading the markets) is likely to continue for the next three-six months. Beyond that, we have to see how the markets pan out."