Satyajit Misra, a software engineer soon re-learnt an age-old adage: Home is where the heart is. After years of living alone as a paying guest, he realized there is nothing better than a home he can call his own. He recently persuaded his wife and mother in Orissa to move to Bangalore. Not only is he content of staying with his own family, but he also lives closer to his workplace.

Misra is not alone in this situation. Scores of IT professionals are coming to Bangalore. As the influx of returnees increased, so did the real estate market in Bangalore. A city known for its Anglo-Indian villas since the early70s, is presently witnessing a high-rise building culture. Recently, an international magazine rated Bangalore as the twelfth loveliest city to live, considering its growing cosmopolitan culture, and of course the weather and the IT growth—an industry which is the primary driver for residential space in the Silicon Valley of India.

A majority of this demand is generated by a large number of tech-professionals moving into the city. Most IT professionals in Bangalore today prefer living closer to the IT corridor. In fact, these suburban plots are selling fast and rapid construction is visible in the south of the city. This most preferred part, which now extends further to the Southeastern belt of the city, is where the IT corridor stretches between Whitefield and Bannerghatta Road.
While Bannerghatta is expanding with the apartment cultures, Whitefield is catching pace with the completely furnished Western villas. With its techie-population, “the city is virtually a paradise with a mix of housing structure and cosmopolitan culture,” say realtors.

However, the lucrative market areas of the city, like Sadashivanagar and the vicinity of M.G. Road, have seen a decline in residential development activity due to the shortage of land available for development. Even then, these areas continue to command the highest prices in the city.

Residential properties in Bangalore are the lowest compared to other major cities in India. Most buyers are executives of IT companies who prefer to live in the more affordable areas located in the central parts of the city, like Cunningham Road, Langford Town, and Richmond Town among others, with budgets ranging from $44,444 to $88,888.

Whitefield dominates the housing arena for one simple reason: apartments here have most amenities, like swimming pools, stores, some even with schools and above all, the comfort of staying near one’s work place. IT professionals look at the IT belt for houses to rent, which don’t come cheap. A single bedroom house can cost anywhere between $111-144 per month, while a two bedroom house will command a premium of $177 and above. Independent houses can cost even up to $2,222, depending on the proximity to the IT parks and subsequent house chosen. Most houses on sale in this part of the city are priced at $22 and above per square feet. The advance for such houses is usually 10-15 months’ rent —a big business in the city.

Despite steep rents in these areas, there is nothing stopping the techies from preferring places near IT corridor. “Rent in some places in Bangalore is slightly cheaper or comparable to those in the US but definitely much less than Mumbai or New Delhi,” says Satya Simha, Senior Project Manager, Analog Devices India Private Limited.
Anand Anandkumar, Managing Director, Magma Design Automation, who returned to India in 2000 says, “Searching for a house was not a big problem in 2000 when I returned. I got a house in Whitefield, as I knew the area would have a huge demand later, and I would be closer to my colleagues who will return in future.” Most U.S returnees wish to settle down in the newly built suburban villas. Areas like Koramangala and Indiranagar are inevitable competitors. Their wide, tree lined roads have raised the land value. Houses in these places have premium costs, as there are no apartments or land available for new construction.

Encouraged by IT growth in the past four years, builders who duly prepared for the accompanying real estate surge have begun procuring buyers as houses are becoming easier to obtain. Sales executive Imran of Presitge Group says “people in higher positions at the IT companies look for row houses and villas or houses in private townships that are coming up in the outskirts of the city.” With the development of these townships, many prefer to remain there because of closeness to the workplace. This remains true for the vicinity of technology haven Electronic City, including Sarjapur Road, Singasandra, Bommasandra and Attibele. People also reside in somewhat farther areas like BTM layout, JP Nagar, and Banashankari.
Banks are currently ready to finance house purchase schemes. Builders are collaborating with financial institutions to help techies buy, rent or lease houses. Raghu, Loan Manager at ICICI bank says, “We help techies buy, rent or lease houses as we are sure of prompt repayment.” “It generally works, as banks are more than willing to lend them money.” When builders and real estate dealers are involved, how distanced can brokers be? The brokers charge anywhere between 1.5-2.5 percent of the rent value.

‘The moment a builder announces a new project near the IT parks, houses are booked in advance,” says a builder. He adds that most of his clients are software companies who seek accommodations for either top-notch officials or employees on short-term basis.

Techies prefer apartment environments as it helps their kids play, learn and settle. “Even though parents struggle, it’s the kids who get acclimatized fast,” says Simha. Simha’s kids are six and nine years old and their response towards the changed environment has been inquisitive.

Northern Bangalore has not witnessed the housing boom because there are few IT industries. However, with the start of the International Airport, this will be a large growth area. This area is expected to experience major developments in housing, as companies prefer having accommodation as close to the airport as possible.

As Bangalore becomes the preferred choice for IT companies, there is an increase in the number of vehicles resulting in traffic, which the city has become infamous for. Anandkumar says, “Over five years I have been in Bangalore, I have seen the city grow exponentially. There are too many vehicles but less infrastructure development. It used to take 15-20 minutes to drive down to my office on Airport road earlier, but now it takes me a exhausting 45 minutes to an hour.’ Simha shares the same sentiment— It takes me almost one and half hour to travel 17 kilometers from my house to workplace.