Market OverviewThe Bangalore market witnessed improved residential real estate absorption in 4Q13 in comparison to 3Q13. Over 30 residential projects were launched across Bangalore in the last quarter of 2013. Major residential launches included Unishire Belvedere Signature, Orchids Lake View, Ajmera Stone Park, Hiranandani Edenhall, Sobha Town Square and Purva Coronation Square.
Capital values appreciated marginally across various sub-markets in 4Q13 due to an increase in sales volumes and higher prices at most projects that were nearing completion.
OutlookBangalore's residential markets are exhibiting continued steady growth in 1H14. Capital values are forecast to stabilise and rents for residential properties in the city are predicted to record marginal growth.
The first half of 2014 will be defined by a moderate number of launches of residential projects, and stable demand. Rents and capital values will remain stable during 1H14 and increase in 2H14.
The following factors will influence capital appreciation and rental potential in Bangalore:
Growth in the IT IndustryAn increasing number of High Net-Worth Individuals and Non Resident Indians (NRIs) / expatriates
Proposed infrastructure by the Government (Peripheral Ring Road, Metro Rail, Signal Free ORR, High Speed Rail Link, Mono Rail and Elevated Expressway).
Proposed SEZ and IT parks in North Bangalore (ITIR in Devanhalli, Aerospace SEZ, Devanhalli Business Park, Airport City)
Sanjay Chugh is the Head of Residential Services (Bangalore & Chennai) Jones Lang LaSalle IndiaLatest Business News
