Bangalore Real Estate Market Remains Stable

In the year 2013 the Bangalore real estate market received a fresh round of private equity investment of INR 2000 crore between January and September. The investment went up by nearly 80 % changing the scene in the market and encouraging more investment to cater to the growing demand in Bangalore. “Bangalore is an IT capital and hub for south India. Profile of developers in the city is very good. Bangalore witnessed the highest level of announced investment value in 2013 at Rs 1,979 crore ($317 million). This was due to a commitment by a sovereign fund into a platform focused on leased office assets,” says Sanjay Dutt of Cushman & Wakefield.

One of the major reasons for such high volume of investment is because there are projects across all segments in Bangalore. May it villas, plots or flats in Bangalore, you can find one to fit your budget and financial requirement. Availability of properties especially residential properties in Whitefield, North Bangalore, Electronic City and Sarjapur Road being one if the major development centres have driven a lot of demand in the city.

The availability of options of housing for all segments is a very important factor for a balanced real estate development in any city. Many metros in India lack this development scheme especially cities like Mumbai and Chennai. Either the prices are sky high or the prices are low but not in the location of your choice. Bangalore has many options for the end users and keeps them happy in terms of pricing as well as options. Pricing is one of the key factors driving the real estate sector in any city. Although Bangalore is one of the top cities in India, the real estate pricing in the city is much lower compared to many other metros like Mumbai, Delhi, Hyderabad, Chennai and Kolkata. Developers like Sobha, Purvankara, Prestige and Brigade Group have covered the length and breadth of the city with various housing projects catering to different target audiences in an area.

Another city which saw a good private equity is Pune which has seen a thriving real estate industry in the past decade. According to Cushman and Wakefield, the city of Pune received around INR 780 crore of private equity investment in the same period of January to September 2013. The numbers have shown a stark threefold increase as compared to INR 234 crore in January to September 2012. Mumbai showed a 43% percent decline in the private equity investment and so was the National Capital area. As compared to INR 1262 crore of investment in 2012, the national capital region received an investment of a mere INR 720 crore in 2013. The industry consensus remains that Bangalore has emerged as a leader in the real estate sector in the country to much stability. Important localities like residential properties in Whitefield have shown higher demand and a 20 % price hike. Flats in Bangalore merged as the preferred investment choice in the city.

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