New Delhi: Bangalore has been the fastest growing city of India over the past few decades. Information Technology has been the major growth driver responsible for aggressive real estate development of the city. Being the IT Hub of India, Bangalore has a multi-cultural population, good social infrastructure, excellent educational institutes and an improving physical infrastructure. Currently, the most promising residential micro-markets are Outer Ring Road (ORR), Sarjapur Road, Whitefield and North Bangalore.
Bangalore is also the third-largest real estate investment hub for High Net worth Individuals (HNIs) and tops the list in terms of investments from Non Resident Indians (NRIs) looking at settling down in India in the future. The city attracts a sizeable population due to its cosmopolitan culture. Home to over 10,000 individual dollar millionaires, Bangalore has a large base of expatriates living and employed in the city.
There has been increased demand for high-end residential apartments in the city, particularly in the Central Business District (CBD), Secondary Business District (SBD), Whitefield, North Bangalore and Outer Ring Road sub-markets.
High End Segment – Rs. 1.5 Crore and above
Demand for high-end residential projects is expected to be steady over the next 12 months. Bangalore is one of the most promising markets for villa projects in India. Villa and row house developments are most active in the micro-markets of Whitefield, North Bangalore, Outer Ring Road and Sarjapur Road. However, buyers are very selective about these projects when it comes to the amenities, product quality and size of the units.
Mid-segment – Rs. 75 lakh to Rs 1.5 crore
This segment is mainly driven by individuals working in the IT/ITeS industry. The main driving factors for mid-segment homes are social infrastructure, proximity to workplace, good physical infrastructure and access to medical and educational facilities.
With regards to these factors, the micro-markets like Whitefield, ORR IT corridor, Electronic city and a few areas in North Bangalore will continue to witness considerable demand in 2014.
Affordable Segment – Below Rs. 50 lakh
Affordable housing will see constant demand on the outskirts of Bangalore, in all directions. Availability of large land parcels at lower prices has encouraged affordable housing projects in these areas. Also, the planned Metro rail and the Peripheral Ring Road have increased demand on the outskirts of Bangalore.
VBHC Attibele and Patel Neo Town in South Bangalore, Provident Welworth and Sovereign Lakefront in North Bangalore, Provident Sunworth and VBHC Kengeri in West Bangalore are some of the notable affordable housing projects in the city. The demand for budget housing in East Bangalore is lower when compared to the other micro-markets of the city such as Mysore road, Hosur road, Kanakapura Road, etc.
