Bengaluru: The real estate sector of India always does not show great promises. Even today many cities like Mumbai, Noida, NCR and New Delhi is struggling with unsold stocks of the last two years and yet waiting for the market to churn up. Although we see a lull in the last two years in many cities of India, few markets of India has shown promises in the real estate sector. In the recent years Bengaluru market has been quite promising with the constant increment of the habitation of IT and ITeS sector and has become investor friendly as well. The mega-players of the real estate industry opine that Bengaluru real estate industry always have been giving the investor a minimum return of 20 percent, whatever be the market conditions. There are few reasons for the Bengaluru market to show this healthy trend.
Bengaluru – The fastest growing real estate market
This market has witnessed many foreign investments owing to its cosmopolitan physical and social infrastructure and high absorption rates of residential apartments and commercial complexes as well. The increasing number of IT, ITeS and also manufacturing and garment companies along with others have created a perennial demand for both commercial and residential complexes and apartments.
The city is reputed for attracting work force from not only India but abroad as well and thus it had been in the spotlight for the domestic and foreign investment alike. The builders of Bengaluru look forward for foreign investors which they easily get. The data shows that in Bengaluru, there are about 300 ongoing residential projects which are being constructed. In addition to this Bengaluru has affordable office spaces which are also accentuating the real estate market demand. This causes many offices to be built here, creating employment opportunities. Last month E-Commerce giant Flipcart is said to have signed on a 3.25 million sq. ft. of office space in the Embassy Tech Village on the Outer Ring Road.
We enlist below few of the real estate trends noted in Bengaluru which attracts many foreign investors making this city an investors’ choice.
Growth of the IT and ITeS sector:
The increasing rate of growth in the IT and the ITeS sector has certainly increased the number of jobs in Bengaluru. This has also increased the rate of migration in the city which is from the working class. This has certainly impacted the development of the city of Bengaluru. The rise in income levels, purchasing power, global exposure and the rise in education has raised the living standards of the city. Data shows that Bengaluru has more office spaces for rent available compared to other cities. This again leads to development of IT, ITeS and other offices and generation of more jobs.
Infrastructure – Root of development:
The proposed development of Infrastructure like the Metro railway construction across all corridors of Bengaluru, extension of 4 lane roads to embanked highways, improvement of networks through construction of additional roads like NICE road and the Outer Ring Road, development of infrastructure in Devanahalli, Doddabalapur, Nelamangala, Tumkur Road , K.R. Puram, Mysore Road has also led to the increased rate of absorption in the real estate market and the change of scene in the real estate market of Bengaluru.
Increase of the Capital Values:
Albeit that Bengaluru market has a reputation of good and steady returns on investment, it has witnessed quite steady demand even when the real estate market of whole of India was unstable. From the last few decades the real estate sector of Bengaluru focused on the mid-segment which started offering housing at affordable costs. There are quite a few developers in this segment. Dreamz Infra, Corncorde and Shobha developers are few names along with many who has discovered this market segment and which is being explored. The market watchers have stated that even in tough conditions this middle-segment has witnessed a price appreciation of 41 percent. Few areas like North Bengaluru, Electric City and Whitefield are the micro-markets that have witnessed a steady demand in the middle segment.
Bengaluru: A market driven by end users:
The reason for the better performance of Bengaluru market is that it is driven by the end users compared to cities like Delhi, Mumbai and Chennai. Not only in the IT and ITeS, Bengaluru is developing on a faster track on the fronts of textile, manufacturing, bio-technology and many more. So unlike other metropolitan cities Bengaluru has a huge sale of ready-to-move-in apartments as well. This can be attributed to the large mass of the end users with a good purchasing power and the need for housing.
