Bangalore,
the third largest city in India and nation’s leading IT corridor has a real
estate market that derives demand for every sector of the real estate;
commercial and residential. The real estate market has been on a positive side
for the city and 2014 brings some trends that add to the popularity of the
city. The following article talks about the five trends that the city sees in
2014.
Bangalore
situated on the southeast of Karnataka covers an area of 741 square feet. It is
one of the major economic centers in India contributing a major to the Indian
economy. The “silicon valley of India” attracts a lot of working population
nationally and internationally. The residential real estate in
Bangalore is led by the increasing workforce. Therefore, the city’s real estate
is clearly defined by the commercial as well as residential demands.
Bangalore
Real Estate Scenario in 2013
Bangalore
unlike many real estate markets witnessed strong residential real estate market
in 2013. The demand drivers for the real estate of Bangalore can be clearly
credited to the:
- The
growth of IT/ITES sector in the city constantly expanding the commercial
needs of the city
- The
supporting infrastructure that is constantly being upgraded with projects
like the metro rail, the outer ring road (ORR) and elevated roads
- The
increasing population in the city that generates demands for the
residential real estate
·
In
all, it is not wrong to say that the city has a huge potential when it comes to
real estate. Year 2014 brought such trends that proved city’s potential in the real
estate sector.
Bangalore:
Trends in 2014
Shweta
Jain, Executive Director Cushman & Wakefield stated that the factors such
as slow economic growth and unrest in the market due to inflation and slow real
estate developments has led the more probable markets of Mumbai and Delhi-NCR
to witness a less rate of appreciation
#1:
Bangalore appreciated the most in the mid-segment housing section
During
the last three years, Bangalore has witnessed an appreciation of about 41%.
This brings the city on number one when it comes to mid-segment housing sector.
The range of capital value appreciation of the residential real estate in
Bangalore, in the last three months ranged between 14% and 41%.
Launch
of quality developments in North West Bangalore and their proximity to the
airport are the prime reasons that have a role to play in this
appreciation.
#2:
The Bangalore realty market attracts maximum private equity investments in the
country
In
the first half of 2014, Bangalore attracted maximum private equity investment.
The real estate of the city led by high demand for office spaces and
residential demands as well brings Bangalore ahead of the primary markets of
Mumbai and Delhi-NCR. The first quarter of 2013 recorded 103 crore
of private equity investments which increased to 2005 crore in the first
quarter of 2014. Why is Bangalore attracting a good rate of private equity
investments? This is because:
#3:
North Bangalore gaining Momentum in the Residential Real Estate Market
Talking
about the residential real estate of Bangalore, then areas
in North Bangalore due to their proximity to the Kempegowda International
Airport is gaining strong momentum. The region is also witnessing development
of technology parks with a number of IT companies and a proposed SEZ adds to
the increasing demand of residential real estate in this area.
Yelahanka,
Hebbal, Devanahalli and Hennur Road in the North and North East are the major
areas that are gathering the attention of investors.
#4:
Office Space witness maximum demand from IT/ITES sector
Bangalore
is one the key office markets in the southern part of India and the city has
primarily grown because of the IT/ITES sector.
Bangalore
has four major types of industries that generate office space demand. The
industry sectors which have major role to play in the city are:
- IT/ITES
- Banking and
Financial Services Industry
- Manufacturing
- Others
Bangalore
has been witnessing the major demand from the IT sector in terms of office
space past three years, it being the nation’s major IT
exporter. Hence, 2014 also sees maximum demand driving from this
sector.
#5:
2014 is experiencing a very positive shift in the real estate
Observing
all of the above, 2014 certainly is a very fruitful year for the real estate of
Bangalore. Though the overall market scenario in the real estate sector is
improving this year, Bangalore has an edge over the other markets and there is
much to happen in the property market that will add to the stability and growth
of it.
With
this positivity and rising demands, Bangalore is topping many lists and buying
trends in the city are going higher and higher. The maximum use of office space
by the industries that invite professionals from round the world is the key
point that generates demand.
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