Sharing this article from The Financial Express
Despite slowdown in demand for residential units in recent years, property prices in Bengaluru have shown better growth compared to many other cities, albeit in single digit. The city property prices have witnesses a grow of about 7% annually over the last three years, which is comparatively better than other cities.
Real estate developers in the IT city have witnessed much better price appreciation than other cities like Delhi-NCR (6% growth), Pune (5% growth), Chennai (4% growth) among others between 2012 and 2015. Mumbai is the only other big city where prices have grown at par with Bengaluru, according to a research by Knight Frank, global property consultant.
Prices of housing units in some of Bengaluru’s micro markets like Hebbal are currently (2015) running in the range of Rs 7,100 per sq ft compared to Rs 4,250 per sq ft in 2012, showing a growth of 67% over a three year period. In K R Puram, prices have grown 33% to Rs 4,300 per sq ft from Rs 3,245 per sq ft in 2012. In Koramangala, prices have increased by 20% to Rs 8,750 per sq ft from Rs 7,250 per sq ft. Whereas in places like Dwarka Expressway and Noida extension, prices have appreciated by just 12% and 6% to Rs 5,500 per sq ft and Rs 3,400 per sq ft respectively in this period. In other places like Chembur and Wadala in Mumbai, prices have gone up by 42% and 40% to Rs 17,000 per sq ft and Rs 21,000 per sq ft respectively.
Areas surrounding Hebbal have recorded the highest growth rate on the back of better infrastructure, while K R Puram has registered the lowest growth rate among the two emerging residential hubs in the city, Knight Frank research said.
“The demand drivers in these destinations have undergone significant changes in the last three years in terms of delay in the commencement of infrastructure projects, poor sentiment among home buyers, litigations and other legal issues or a supply glut of new projects,” Knight Frank said.