Bangalore is touted as one of the fastest growing cities in India. The scorching industrialization has fuelled the growth of Residential projects in Bangalore. The city has earned the name of Silicon Valley because of the presence of number of IT/ITES. Bangalore also enjoys an amazing cosmopolitan culture with migrants hailing from different parts of the country. The city boasts of robust social infrastructure, burgeoning industrialization, great connectivity and constantly upgrading physical infrastructure.
Residential real estate in Bangalore offers all types of housing in order to cater to the needs of each segment of the society.
Luxury Residential Projects
Bangalore is the third-largest hub for High Net worth Individuals (HNIs). It is estimated to be home to over 10,000 individual dollar millionaires. Bangalore has a large base of expatriates who live and work in the city. The residents are well exposed to international standards, highly educated and cultured and do have refined tastes.
There has been increased demand for luxury apartments in Bangalore, particularly in the Central Business District (CBD), Secondary Business District (SBD), Whitefield, North Bangalore and Outer Ring Road sub-markets. Bangalore is one of the most promising markets for villa projects in India. Villa and row house developments are most commonly seen in the North Bangalore, ORR, Sarjapur Road and Whitefield micro-markets. People buying luxury apartments in Bangalore pay much importance to amenities, product quality and unit sizes.
This segment is mainly driven by individuals working in the IT and ITES industry. The main driving factors for this segment are social infrastructure, proximity to workplaces, good physical infrastructure and access to medical and educational facilities.
Because of these reasons, micro-markets such as Whitefield, the ORR IT corridor, Electronic City and few areas in North Bangalore have witnessed a stable demand from the mid-income segment.
The demand from this segment comes from extremely price sensitive buyers. Affordable projects are developed in the suburbs as these areas offer large land parcels at lower acquisition costs. Areas such as Mysore road, Hosur road, Kanakapura road etc. have witnessed high demand for this segment. It is seen that in most of the cases housing units are made affordable by reduced unit sizes, property in India, compromising on civic amenities and other USPs which were typically provided as differentiators to the competing projects in the micro-market/city.
Affordable housing has been witnessing continuous demand on the outskirts of Bangalore, in all directions. Availability of large land parcels at lower price points has encouraged these developments. Also, the planned Metro Rail and Peripheral Ring Road have fuelled the demand on the outskirts of Bangalore.
Captured below are the factors that has largely influenced the capital appreciation and rental potential in Bangalore:
Growth in the IT Industry and a rapidly increasing number of High Net-Worth Individuals, and movement of expatriates.
The proposed infrastructure by the Government (Peripheral Ring Road, Metro Rail, Signal Free ORR, High Speed Rail Link, Mono Rail, Elevated Expressway).
The proposed SEZ and IT parks in North Bangalore. (ITIR in Devanhalli, Aerospace SEZ, Devanhalli Business Park, Airport city).
Bangalore appears to be a promising destination to invest catering the needs of all the segments of the society. The future also seems to be bright with burgeoning industrialization and other developments.