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Bengaluru, the silicon valley of India is one of the fastest growing cities of India. The city has emerged as a major IT hub, with top companies setting up their offices in the city. Thousands of software professionals are attracted to the city, which are the prime market for the luxury housing segment of the city.
The boom in IT/ITES companies is the key drivers for the economic development and contentious real estate growth of the city. The urban culture of the city attracts people from across the country, which move to the city of gardens and reside here for better career growth. Good social infrastructure, rapidly developing physical infrastructure and presence of top educational institutions are some of other factors that have led to the realty boom here. The difference in the property prices in comparison to metros like Delhi and Mumbai is another key factor why people choose to move to this city. Areas like North Bengaluru, Sarjapur Road and Whitefield have seen an excellent growth in terms of premium housing segment.
The number of transactions by the end user in the premium housing sector have actually picked up in the city where the end user refers to people in the high income category who are in their mid-30’s or 40’s and are normally the top management officials of a MNC or IT/ITES company. The new residential launches in the city are also on an upward slope with most of them being 3 or 4BHK capacious apartments located in the chief locales of the city and fully loaded with best-in-class lifestyle amenities like club house, gymnasium, swimming pool, retail shops, day care center and uninterrupted power back up and water supply.
Many of the top builders have realized this preferential change for premium housing segment, well in time and are coming up with residential developments to meet this increasing demand.
The city has been divided into four main zones.
This region of the city has an ever increasing demand for premium housing residential units. The commencement of Bengaluru International Airport has resulted in a lot of hustle bustle in residential realty sector of North Bengaluru. This region is expected to be the next economic center of the city with projects set up in areas around Hebbal and Bellary Road coming under luxury housing category. Well planned social and physical infrastructure and closeness to International Airport have sparked the growth here.
This part of Bengaluru is still under valued, but is expected to see growth once the Electronic City is established here. The area is expected to witness increased development as more infrastructural developments take place.
Whitefield in East Bengaluru has emerged to be a self-sustaining area. The luxury housing in this area is witnessing a continuous growth in demand due to the region being the nerve center of software companies and having good infrastructural development both in social and physical terms.
This region of the city houses the major industries and has developed into an industrial micro market. Since this has emerged as a hub for major industries, many developers are making residential complexes in the vicinity.
Inspite of the stagnation in the realty sector nationwide, Bengaluru has good news for the potential home buyers as it is still amongst the best performing realty markets of the country as observed in the first half of the year 2016. Continuing with this trend even in the latter half of year 2016, the new launches are projected to be up by 4% in comparison to 2015 second half.
As per the January-June 2016 quarter “India Real Estate Residential and office” report, the residential market in Bengaluru saw a rise of 13% in new launches and the sales increased by 18% on a year-on-year basis in comparison to first half of 2015.
Though the realty industry of the country remained quite in almost all the categories but the city’s high residential market comprising of areas like Malleshwram, Lavelle Road, Indiranagar and Richmond Road increased by 23% in the first half of 2016 specifically in new product launches. In comparison to first half of 2015 that had low sales, the same time duration in 2016 saw a growth of 35% in the demand for high end property segment.
There was a slight decline in the premium housing category during last year which led to a drop of 1% in the weighted average growth in price year on year basis in the first half of 2016 in comparison to same time in 2015. Talking about the pricing, when compared to the city’s overall price, the high end luxury housing category in Bangalore saw a slight increase in prices, while the overall price growth in the city was by over 3%.
Bangalore with its amazing weather, plethora of job opportunities, is one of the best cities to invest in real estate in India. Dubbed the 'Silicon Valley' of India, the property in Bangalore is expected to witness a gain of 10-20% in the next few years, making it an ideal time to invest.
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