Real Estate in Bangalore Seeing An Upward Trend
Real Estate in Bangalore Seeing An Upward Trend
Bangalore realty market is usually preferred by the upper middle class, HNIs and NRIs. Due to its suitable climatic conditions, heavy greenery cover and peaceful surroundings, it has become a hub among investors. The flat prices in Bangalore are also competitive with the rest of the Metros with multi-storey apartments priced at Rs 6,500 to 8,500/sq ft.
Over the years, there is a steep increase in the property values due to the presence of Metro rail and several other infrastructural developments. Thus the realty prices are on the upward swing and continue to dominate the market. Most of the flats for sale in Basavanagudi are preferred by the posh and classy society of Bangalore as it connects Jayanagar, Koramangala, Lalbagh and Banshankari that are prominent locations in the city.
The demand for the properties in Bangalore comes 30% from the expats in the Gulf countries, 30% from Bangalore people and the remaining 40% from other states. The presence of renowned builders in the Bangalore market has further helped to increase the sales. Many big names have already announced world-class projects for the real estate in Bangalore. Some of them include Shobha builders, Prestige Group, Brigade Group and so on. These high-end apartments provide numerous amenities that attract upper middle-class buyers with modern interiors and facilities.
The good infrastructure and high capital appreciation prove to be beneficial for the investors. Over the years, there has been good appreciation and high demand for rental values in the Bangalore realty. Thus for every buyer it will be a profitable investment that is sure to double returns over the years.
Flat Prices In Bangalore Show Massive Improvement In Sales Trend
Multi-storey apartments in Basavanagudi, located in South Bangalore, has recently witnessed 50% hike in appreciation in comparison to the last quarter. The demand for flats for sale in Basavanagudi has escalated in a short span of time, leading to a sudden surge in supply.
With connectivity, location and appreciation being the key points for every buyer, it is no surprise that the area has become a hot property location. Lucrative property investments are possible with rising values and a balance between the demand and supply ratio. With properties in Bangalore, this scenario is very common.
Even though, the rates keep escalating, it does not deter the demand for residential multi-storey buildings in the city. Basavanagudi is one such location that is easily accessible from all parts of Bangalore and hence enjoys a major chunk of flats for sale in Bangalore.
Property Prices In Marathahalli Change The Realty Scenario In Bangalore
Witnessing an upward trend in the city of Bangalore, Marathahalli is emerging as one of the top residential localities. Good connectivity and availability of education institutes, shopping centers and hospitals boosts the realty market in the area. Flats for sale near Marathahalli have significantly increased in supply owing to the huge demand for it.
Proximity to prime areas such as K R Puram, Whitefield and HSR Layout contribute significantly to the hike in realty demand for Marathahalli. Witnessing a growth of 4.94% makes property prices in Marathahalli, competitive to other area rates. An annual growth of 9% is also witnessed in the past few months making it perfect for a buyer’s market.
Flat Prices in Marathahalli see Significant Rise in Bangalore
One of the high-performing localities in the city, Marathahalli is close to the Outer Ring Road (ORR) that gives access to all prime locations in Bangalore. Just 1-2 kms from Marathahalli, the ORR is a major backbone of the city.
The significant rise in flats for sale in Bangalore is due to the presence of the ORR. Another advantage of the area is the 6-lane railway over bridge starting from Marathahalli Junction gives access to Kundalahalli and HAL Airport Road.
This exceptional and smooth connectivity has helped to increase the property prices in Marathahalli. The rates for multistorey apartments vary between Rs 5,000 to Rs 7,000/sq-ft. Thus Marathahalli is a buyer’s market and is solely driven by the demand from the end-user segment.
A number of new projects are coming up in Marathahalli, and several of the top builders such as Mantri Developers, Green City Homes, Isha Infra projects and Assetz Homes are making their presence felt in the locality. Builder floor apartments are also being offered by developers.
The average values for builder floor ranges between Rs 3,500 to Rs 5,000/sq-ft. The number of 2 BHK flats for sale in Marathahalli has increased due to the presence of such affordable homes. Exclusive amenities are also available for the apartments that include swimming pool, gym, covered car parking and many other facilities.
The capital appreciation and the rental values in the apartments are showing an increase over the years. With the flats for sale in Bangalore showing a huge demand, investments in the city prove to be very profitable. The good returns expected from the properties are sure to benefit the investors and the rental market in Marathahalli also.
Infrastructure And Connectivity Boost The Property Prices In Sarjapur Road
Located on the Outer Ring Road (ORR), Sarjapur Road is emerging as one of the most sought after commercial and residential locations. The presence of IT companies close to the locality and its easy connectivity options to all the neighbouring areas has improved its realty scenario. This easy accessibility has increased the number of flats for sale in Sarjapur Road and kept them steady.
Getting closer to the SEZs and IT Parks in the stretch, is proving to be beneficial in the area. The total increase for properties prices in Sarjapur Road is done owing to the IT companies in the area. Due to the wide category of apartments available in the area, the prospective investors have several homes to choose from. Beginning from 25 lakhs, the affordable housing category help flats for sale in Bangalore look at huge profits in the coming residential quarter.
The South and East of Bangalore have reached a saturation point in terms of the housing development. The flats rates in Sarjapur Road cater to the mid-segment category and have the advantage of broader roads and flyovers. This has led to several investors showing keen interest in the 2 BHK and 3 BHK homes available in Bangalore.
The high affordability factor has further escalated the flat prices in Sarjapur Road. The average values for 2 BHK apartments in Bangalore are priced between Rs 3,500 to 4,500 per Sq.ft. The presence of IT concentration near to the areas of Madiwala, ORR and Whitefield help in increasing the properties prices in Sarjapur Road.
Multi-storey apartments in 2 BHK and 3 BHK segments are found in abundance in Sarjapur Road and enable fast appreciation of the properties purchased.
Commercial and Residential Development Help Increase Flat Prices in Sarjapur Road
The upcoming infrastructural developments have ensured that the area gets educational institutes, malls and hospitals. Though the levels of development are slow, it does not hinder the appreciation for flats for sale in Bangalore. Commercial spaces are also looking at huge demand in the locality.
The presence of residential dwellings caters to the boost in the commercial segment as well. As the professionals looking for homes in Sarjapur Road are those working in the nearby IT companies, the properties prices in Sarjapur Road are escalating.
The properties in Bangalore are looking at huge appreciation currently and in the coming months. The rental demands in areas close to the IT companies have also escalated due to the presence of the IT sector. Hence flats rates in Sarjapur Road are sure to remain consistent or increase over the next six months. Wise investments in the residential sector of flourishing areas will help boost up the realty sector of Bangalore.
How Indian Real Estate Market Will Likely Fair in 2015?
According to the National Housing Bank (NHB) Residex Index, residential property prices show an upward trend in the second half of 2014. First half had seen property prices dip, as the weak rupee and high inflation had a negative impact on spending. Needless to mention that 2015 will largely be about recovery. The RBI will most likely cut interest rates and this will see more spending in the residential real estate segment. The Ministry of Statistics Program and Implementation and PwC Analysis predict a growth of 8 to 9 per cent. Added to this, the introduction of REITs, improved market sentiment and more efforts by the government to reduce project loopholes and bottlenecks in transactions will go a long way in clearing the way for positive trends in 2015.
In India, real estate plays an important role, from affordable housing to infrastructure and generating employment. Here are some of the reasons why:
• The Economic Survey of 2012-13 revealed housing to be the second largest industry that generates employment, after agriculture.
• With more than 300 linked industries like steel, transport, construction, cement and brick, real estate contributes significantly to the country’s GDP share and capital formation.
• NHB’s report places real estate as the third most impactful industry in India in terms of its effect on other industries and fourth in terms of employment generation.
• The residential segment, comprising residential buildings, townships, schools, colleges and hospitals and other projects, makes the maximum overall contribution in the real estate industry and commands the largest part of its market share.
• The real estate sector employs more than 35 million people, especially low and medium skilled labour
• Directly impacts manufacturing
• Attracts a lot of money in foreign direct investment (FDI)
Recap of 2014, its main events and economic drivers
• According to Colliers Research, Bangalore and Chennai witnessed maximum demand and growth, while Kolkata, Mumbai and Gurgaon were unchanged. Despite this, many developers launched new projects during the end of 2014.
• There is a backlog of unsold property. 2014 has seen delays in approvals, project clearances and targets, apart from debt commitment on property and government spending less in this area and a huge delay in finishing projects
• Construction industry has grown 2 per cent from 2014 to 2015.
Trends in 2015
• The Planning Commission estimates that by 2030, about 600 million people will live in cities. Affordable housing therefore is a huge demand and the industry has a large gap to meet, with shortage seen among the low income groups.
• International agencies like IMF and World Bank predict an increase in GDP.
• Real estate market is driven largely by sentiment.
• First half of 2015 will be largely recovery with property markets.
• Project Vendor.com projects a 10 to 15 per cent increase in growth from FY14 to FY17 and 11 per cent growth in FY15. Residential and commercial projects, organised retail will contribute to this growth significantly.
• Real estate construction market is poised to grow by 20 per cent between now and 2017.
• Both large and specialised players stand to benefit and gain equally.
• Real Estate Investment Trusts (REITs) and commercial real estate will make significant impact. REITs will have a huge impact in 2015.
It is an internationally tried and tested strategy, especially in the USA, Taiwan, South Korea, Singapore and Australia. An REIT is a trust that buys, sells, develops and manages income-generating real estate property such as malls, commercial office spaces and more, with the main intention of attracting investors who can manage an interesting array of properties. Corporate investors benefit from tax exemptions. It largely impacts small investors and encourages proper investment channels in large real estate accounts, and is a better alternative to investing in stock, due to its higher returns and a diversified portfolio of investments. Blackstone, Xander, Brookfield and more real estate funds intend to launch REITs in the country and DLF, Phoenix and Prestige are expecting to make use of this huge opportunity.
• The residential real estate space in India is divided into affordable housing, mid-level priced houses and the luxury segment. The onus on low cost housing is expected to put pressure on the luxury segment, but this is not significant. 2015 will focus more on recovery and clearing inventory, construction deadlines and backlogs.
• Pricing is very important. Affordable price points will lead to higher absorption levels.
• Easing pressure on the rupee will also impact the industry positively.
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