BENGALURU: Sales of residential property in Bengaluru have been sluggish over the past few years, just like that in Delhi and Mumbai, but that has not prevented a few micro markets to shine amidst the gloom, driven primarily by demand from the IT sector population.
An analysis of the capital value appreciation of a few major apartments shows an average spike of about 9% and 6% respectively in the east and south, and about 3% in the west. Property prices in the north have, in most cases, either remained flat or inched up marginally. Barring in the east, the increases are lower than, or no more than, India’s consumer inflation rate, which means property yields are no longer very attractive for investors.
Demand remains concentrated in the east, comprising of locations such as Whitefield, Varthur, Yemalur, Mahadevapura and Hoodi Circle, and south, which includes Electronic City, JP Nagar, Bannerghatta Road and Kanakapura Road.
A residential apartment in Whitefield that had a sale value of Rs 6,900 per sqft in 2015, is currently priced at about Rs 7,500, an appreciation of about 9%. Another project near Koramangala has seen prices go up to Rs 12,000 per sqft, from Rs 10,000 last year. The reasons can be attributed to the units launched being within the preferred budget range, the huge employment hub of Whitefield and Outer Ring Road, and proposed metro connection to Whitefield.The ongoing metro work in the south is helping property prices in that region.
Out of the 24,281new launches in the first half of the year, east and south contributed about 69%, or 16,754 units, according to data from independent property consultancy Knight Frank. It was 54% of the total launches in the same period last year. In comparison, north Bengaluru, gearing up to be the next big destination point because of its proximity to the airport, saw its contribution to total launches drop to 22%, from 37%, because of high prices.
Credits Times of India