Flats in North Bangalore see Spurt in Capital Value

Bangalore:  Improved connectivity and good infrastructure are acting as a catalyst for far-flung areas of Bangalore with good real estate development. According to MagicBricks.com, North Bangalore is emerging as most preferred residential hotspot compared to southern and eastern parts, reports Shilpa Phadnis of TNN.

With the improvement in infrastructure, micro markets, good connectivity the northern areas of Bangalore have seen robust growth in capital value. Apartments in Hebbal have witnessed the highest capital value appreciation followed by Horamavu and Sahakar Nagar. The reason behind this growth is because of improved connectivity linking these areas to the city centre along with improved social infrastructure.

In the first quarter of 2012, capital values in Hebbal recording 33.94 percent increase at 3650 per square feet, which is more compared to the same period previous year. After Hebbal, Horamavu stood at second position in the capital value appreciation that rose 25.51 percent to 3075 per square feet. Sahakar Nagar also scored well on list with a 23.80 percent increase at 3900 per square feet.

Commercial activity in Hebbal initiates residential development. For instance, JC Sharma, MD of Sobha Developers stated that the company launched their Sobha City residential project at 3700 per square feet, but within a year, the price shot upto 4200. Other prominent developers like Hiranandani, Prestige, Puravankara, Century and Brigade Enterprises are also planning to launch their projects in Northern areas of Bangalore.

According to Karun Varma, MD-Bangalore at Jones Lang LaSalle India, the South and East areas of the city have seen oversupply of inventories, which in turn increases pressure on pricing. “But the inventory in the north is comparatively lower with a good off-take. We’re seeing many new launches by Grade A developers,” says Varma.