Friday, November 29, 2013

Bangalore Real Estate is on an Extension Mode

In the past few years, Bangalore has emerged as the fastest-growing city of the country. The major cause of real estate development is the development in IT sector. Bangalore is known to have a multi-cultural population with excellent educational institutes, constantly upgrading physical infrastructure and good social infrastructure. Right now, the most promising residential micro-markets are Sarjapur Road, Outer Ring Road (ORR), northern parts of the city and Whitefield.

Luxury Residential: Bangalore is considered to be the third-largest cluster for high net worth individuals (HNIs). The city is known to be home to around 10,000 individual dollar millionaires and has a huge base of emigrants. With this thing in mind, there has been a huge demand for high-end residential apartments in the city.

Mid-Income Housing: This sector sees the drive from the people working in the ITeS and IT industry. The prime driving factors for this section are proximity to workplaces, social infrastructure, access to medical and educational facilities and good physical infrastructure.

Affordable Housing: This sector sees extremely price sensitive buyers. The places which have seen a high demand for this section are Hosur Road, Mysore Road, Kanakapura Road etc.

There has been seen an increased demand and housing projects have seen an increase in capital values. They are currently priced higher than or similar to mid-income projects.

Overall Demand Scenario: The city’s market has seen an absorption of 6,519 units in the 2nd quarter of FY’13. This was as against 6,689 units in the previous quarter.

Supply: All in all, 21 residential projects were launched around Bangalore in the second quarter. This offered 9,889 units against 10,009 units in the previous quarter.

CBD & SBD: This section is seeing a high demand and low supply. Owing to availability of high capital values large land parcels, these micro-markets have seen a constrained supply of residential developments. These markets are considered to have good physical and social infrastructure.

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