Connectivity and land parcels grants by govt leads to demand in peripheral districts.
The residential segment has witnessed a 13 per cent increase in new launches and an impressive 18 per cent hike in sales on a year-on-year basis. Buyer confidence is on the rise and the fact that Bengaluru remains one of the best performing markets in India, is likely to build up the market sentiments further.
“Even as sales velocity for mid-income and luxury housing in Bangalore fluctuates with macro-economic variations, the city’s affordable housing segment has been witnessing steady demand on the outskirts,” said Anuj Puri, chairman & country head, Jones Lang LaSalle, India.
The influx of more global corporate occupiers, infrastructure deployment in the peripheral areas, rapidly improving connectivity and grant of large land parcels by the government for commercial and industrial growth have all colluded in the rapid emergence of newer nodes in the peripheral districts, he added.
The influx of investors, as the land in these areas comes at a lower cost, has hiked the property rates in these areas as compared to 2013-14 but still these are still well below the rates when compared to areas nearer to the city. This, in turn, has attracted developers of affordable housing projects, which are in demand from the workforce employed with various industries in the city.
“A good investment in real estate should yield high returns over a long period of time and hence is considered as an asset. Currently, some of the most promising residential micro-markets are located in and around the Outer Ring Road (ORR) and Whitefield towards the east,” said Satish BN, executive director (south), Knight Frank India.
Developments like the recently passed Real Estate (Regulation & Development) Bill 2016, ‘Smart Cities’ initiative, and the introduction of REITs (real estate investment trust) are expected to bring in the much-required transparency into the sector and enhance investor confidence in the coming years and the result is visible in the first quarter of 2016.
House in order
* Micro-markets like Panathur-Varthur in east Bengaluru with average prices of Rs.4,350/ sq ft, and Thanisandra and Kogilu in north Bengaluru with average prices of Rs.4,800/sq ft have great potential as preferred destinations of investment.
South and West Bengaluru
* South Bengaluru peripheral regions such as Anekal, Attibele, Chandapura, Kammasandra, Hosa Road and Begur, as well in west Bengaluru peripheral locations like Kumbalgodu, Tumakuru Road and Kengeri are known to be the destination for affordable housing.
* The average mid-segment prices in west Bengaluru range between Rs.3200-6750/sq ft. while the mid segment prices in the south range between Rs.4,200-7,000/sq ft.
Credits Bangalore Mirror