Real estate in Bangalore – The Lonely and Only Shining Star

Bangalore the city of angels has grown from strength to strength over the years. The city is a perfect example of what a metropolitan should be. The Real estate in Bangalore has grown at an unprecedented rate in the past few years. The city has the highest per capita income of INR 9200/- among all cites in India. It has 91% urban population. Bangalore has not only been a pioneer in the IT sector but also has to credit other sectors like Biotechnology, nano-technology, manufacturing, services and is also the Mecca for Startups. It is also the ‘Skill Headquarters’ of the Country. Out of the 2400 recognized IT firms operating in India, 950 have base in Bangalore. From the real estate perspective one of the main reason for Bangalore’s success has been the low rentals of office space, the table below highlights the average rentals for office space in Bangalore in comparison to NCR and Mumbai.

 

These are very shocking figures as the rentals are more than 50% lower than those of Mumbai and NCR. Further the rental market in Bangalore has grown by 14% whereas NCR has been steady with Mumbai going through a correction of 8%. This highlights the success story real estate in Bangalore.

 

Ser No City 2011

(rent/sq.ft/month)

2015

(rent/sq.ft/month)

1 Bangalore 95 108
2 NCR 295 295
3 Mumbai 270 250

 

Let’s go through another set of data, the table below highlights the stock profile and absorption rate of office space in three major cities. It is clearly evident that Bangalore is on the top, from the point of view of stock as well as the absorption rate. Another highlighted fact is that properties in Bangalore has still maintained its tempo during the times of a slow-down and market correction.

Ser No City 2011

(million sq. ft.)

2015

(million sq. ft.)

Stock Absorption Stock Absorption
1 Bangalore 88 9 127 12
2 NCR 67 6 95 9
3 Mumbai 62 3 87 4

 

Bangalore real estate sector has been on the top right through 2015and the first quarter of 2016. Bangalore accounts for 33% of completion rate of the total developed office space in India and 32% of the total transactions. These figures in themselves are demonstrative of real estate sector’s stability in Bangalore, during the toughest phase the sector has been going through. With this strong potential and performance, the coming years are going to rewarding for real estate in Bangalore. With a steady flow of capital due to desired sales, the top builders in Bangalore has not had to look back and will see a steady progression in future.

bengluru

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s