Real Estate Oasis
By Jyothi Menon
It is boom time here for real estate players (developers, investors, builders, buyers and sellers). Bangalore is on the way to becoming a real estate hot spot in the country and why not? Its cool climate, friendly social culture and forward looking people are all a push in this positive direction.
What makes Bangalore such an in-demand city? Many reasons: It has always been in the centers stage of the IT industry. Ever since IT companies made Bangalore their hub, people have been flocking into it and development has proceeded at a fast pace. The far-flung corners of Bangalore have been gradually integrated by the development of well connected roads, public transportation as well as the development of the Bangalore Metro. In addition, Bangalore is known for its high, fun loving and hip culture, its genuine cosmopolitan people and their down to earth attitude, its high quality educational institutions, its mixture of trendiness and conservativeness, fabulous shopping malls, and an amazing weather. No wonder, Bangalore’s attractiveness serves as a magnet to lure people who arrive here but do not wish to leave. In addition, the distinctiveness lies in the fact that the real estate prices are comparatively lower than other metropolitan cities.
The main factor behind Bangalore’s real estate growth has been the IT industry’s base here. Bangalore accounts for almost 35 % of India’s IT manpower of 1 million professionals. Top companies including Wipro, Infosys, IT parks, Yahoo, Dell, etc are headquartered here. Both the IT development and the BPO industries have been bolstered by the government pumping in a huge amount of money. The foundation of India’s silicon valley or electronic city was laid in 1976. And there has been no looking back since then.
Due to all these factors, there has been a sustained and increasing demand for middle and upper end residential apartments in Bangalore owing to the mobile population of IT workers as well as other professionals who may often come here for 2-3 years and shift out. Bangalore has seen steady sales in properties since 2012 and is expected to give returns of 15 % in the next five years. Other factors which give Bangalore a greater advantage is the low capital costs as compared to Delhi and Mumbai.
fnbworld.com talked to some property developers in the city who have invested in some very interesting luxury residential and housing projects in the rapidly booming areas of Bangalore that are outside the main city. These include outer ring road Sarjapur, Whitefield (for commercial real estate) as well as Hebbal, RT Nagar, Sahakar Nagar in North Bangalore are some other hot areas for residential projects. The ORR at Sarjapur is particularly popular because of its vicinity to IT hubs and companies and nearness to various IT related facilities and is considered an IT area. As per reports, ORR was expected to do extremely well in 2013-2014. North Bangalore is particularly becoming attractive to developers and home hunters owing to its nearness to the Bangalore international Airport, the development of a high speed link and the Yelahanka-Hebbal expressway. Kanakapura Road has also become a target owing to the Metro, Cauvery water availability amongst other things.
Some of the players we spoke to with good experience in real estate in other states are establishing themselves in Bangalore and have been attracted to Bangalore because of the same reasons. Ms Arati Prabhu, Assistant Manager for Mantri Realty (A venture of Mr. Sunil Mantri, who is the founder and vice president of NAREDCO and ex-Credi) informed fnbworld that they are currently involved in two projects, one of which Mantri Primero at Sarjapur ORR is a luxury end project, catering to a budget between the range of 75 to 1.5 crores per flat (one, two and three bedroom flats). The other one at Mantri Royale is more pertaining to lower budget (50 to 75 lakh). This company is based in Maharashtra and is involved in both housing and realty in Solapur and have interests in Gwalior and believes that their pan India experience will differentiate them from other companies. The project targets IT couples who would be based in Bangalore for couple of years, professionals and hence the demand, as per them, will never die. They are very excited about another venture they will be involved in which would be near Infosys. The AGM of the project, Mr Mir also said that amongst the four metros, Bangalore offers the cheapest price per square kilometer rate and returns are much higher.
fnbworld.com also spoke to SJR Primecorp’s Assistant Manager Amol Agarwal, about their residential project, Palazza city also coming up on the Sarjapur Road. This project caters for a budget between 44 lakh and 1 crore (1,2 and 3 BHK). He says that one advantage about Bangalore is that it is an end user directed market and not an investor driven market, unlike Delhi or Mumbai and hence the scope of opportunities would never run dry, inspite of ups and downs. We spoke also with the representative for Hyderabad based prominent Saket group that is constructing their first project in Bangalore, which is Callipolis. It is targeted at the luxury segment and has a total area of 2.5 acres and the price range is from 90 lakhs to 3.5 crores for 2 3 and 3.5 BHK apartments. In his view, Sarjapur, north Bangalore and Hebbal are the most exciting areas for real estate development as far as housing is concerned, at present. The project is almost in completion mode.
There are these and many other projects both under progress and in the pipeline. Bangalore is a hotbed of exciting and luxurious residential flat prospects for the well heeled and it is on the rise as a leader in real estate in the country. Take a peek and study the market carefully and who knows, you may finally build that dream home of yours, right here!
http://www.joneslanglasalleblog.com/reale statecompass/real-estate/2012/12/bangalore-real-es tate-review-2012-predictions-2013/