About New Projects in Bangalore
New projects in Bangalore
Since the past few decades, Bangalore has been the fastest-growing city of India. It is arguably the city which has benefited the most from India’s IT boom leading to an aggressive real estate development in the city. A dedicated government is also responsible for the city’s fascinating growth, among other things, music to the ears for real estate investors.
Locality Trends in Bangalore
Presently, the most auspicious residential micro-markets are Outer Ring Road (ORR), Whitefield and North Bangalore. The proposed SEZ and IT parks in North Bangalore, the proposed infrastructure by the Government, the rapidly increasing number of HNW Individuals and movement of expatriates are some of the few factors influencing the rental potential and capital appreciation in the city.
Proximity to the international airport, planned social and physical infrastructure has boosted the development of the North Bangalore as a result of which the demand for high-end residential units remains high in the region. It is assumed to be the next economic center of Bangalore. The establishment of electronic city as the IT hub increased the housing requirement in South Bangalore but its poor urban and social infrastructure did not attract premium residential developments. Whitefield in East Bangalore being an IT destination has good social infrastructure, developing physical infrastructure thus making it a self-sufficient area with a high demand for luxury residential developments. West Bangalore fails on the count of good social infrastructure and is mainly dominated by industrial developments.
A spike in the hiring activity in last 1 year has increased the migrants in the city and also the fast paced growth of startups has positively impacted the rental potential. Being an end-user driven market Bangalore garners maximum interest in 2BHK units, whereas 4BHK units capture one tenth of the total market share. Prospective home buyers prefer residential apartments as compared to individual bungalows/ villas due to affordability and easy availability of amenities plus the continuous power back up. Due to a huge demand the housing in the affordable range of up to 40 lakhs is seeing the maximum absorption rates and the developers are encashing on this trend. Luxury housing (Rs 1-2 crore) garners traction mainly from the NRI’s or HNI’s.
The real estate bill approval has given the real estate market a positive shape in the year 2016 as the trend will be more focused on the completion of existing projects. The developers are focusing on clearance of their unsold inventory. The availability of under construction projects has dropped by 2% and stood at 54% in the Q4, 2015 as against the Jul-Sept 2015, the ready to move projects rose by same percentage and stood at 46%. Out of the total ready-to-move projects majority of them come in the most absorbed categories of mid-income (40-60 lakhs) and high income (Rs 60 lakh- 1 crore).
Major Developers in Bangalore
The major developers coming up with new projects in Bangalore are Brigade Group, DLF, Godrej Properties, Habitat Ventures, Hiranandani, Keerthi Estates, Sriram properties etc. These developers have changed the horizon of Bangalore with both their residential real estate and commercial properties construction. Developers also give additional discounts and incentives like payment on possession to attract more buyers. With the changing real estate landscape and the market showing a turnaround it's beneficial to invest in new projects in Bangalore as they will see capital appreciation of 20% - 30% in the next few years.