The Real Estate Market Depression Didn’t Affect Bangalore

The real estate market in the National Capital Region (NCR) and Mumbai is depressed leaving the home builders and buyers in worry, but on the other hand the real estate players in Bangalore are calm and optimistic.

The real estate gloom didn’t touch Bangalore’s real estate market, as it sprung with many new launches, rising demand and robust costs in other metros.

Real estate experts and veterans say that it is likely that the residential property in the city will see a robust growth for 2014.

Some experts also viewed that the real estate property priced reasonably, the resilient performance in IT sector, and the expatriates’ interest on a weak rupee is likely to boost the market further when compared to other cities.

The development in the IT/ITeS firms and MNCs has made them to look for expansion of their office that surged the sales in office space in the city, which could be the highest in the country.

According to the report of Cushman &Wakefield, a property consultant showed that Bangalore is estimated to follow Tokyo, which is in the first place in the Asia-Pacific region in demand for office spaces. With the increase in demand for office space, the demand for home will also increase too and the report also said that if a company adds an office space of 100 to 200 sq. ft., it signifies that it has engaged an employee to the company.

Dynamic Residential Real Estate Market

According to a report of Cushman & Wakefield, in 2013 Bangalore City was positioned in third place for all property new launches in the country.

According to a data of Vestian, a real estate advisory firm, till September 2013 Bangalore witnesses a rise of three times in new units’ launch that accounted to 40,000 units and many residential units launches were in the price range of Rs.25 lakh-Rs.1 crore.

While Mumbai markets were piled up with unsold units, on the other hand Bangalore observed a shortage of homes in the range of Rs.50 lakh to Rs.1crore.

The commercial segment, which was sluggish in many cities in the country, saw a healthy demand in Bangalore market. Globally considered as major companies like LinkedIn established their office in Bangalore and with demand for local companies for office space Bangalore City commercial segment was strong. With the expanding companies, the city is home to about 2,800 IT/ITeS companies and the city accounts to 60 per cent of biotech companies in India.

In contrast to other regions, Bangalore saw a good drive in infrastructure projects like the peripheral ring road, Bellary elevated expressway, and airport expansion that also supported in home prices.

It is likely that the development in Hardware and IT Park in Bagalur, Devanahalli Business Park, and IT Investment Region near Chikkaballapur would raise the demand in neighboring areas.

Common Floor, a real estate portal said that while north Bangalore out performed in the real estate sector in last year, presently everyone in the real estate market is eyeing on the central business district and the outer ring road.

Though prices have advanced in the locality, it is likely to remain restrained this year.

Super-luxury homes
Bangalore, which has a population of high net-worth individuals (HNI) of about 10,000 and third highest in the country after Delhi and Mumbai, super-luxury segment is also observing good demand.

Vishnu Shankar of Crorepati Homes also noted that the supply has raised and the bland private equity (PE), undertaking investment and M&A market, may drag the demand.

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