A Quick Look at the Trends within the Bangalore Residential Property Market

The residential real estate market of Bangalore is back with a bang after the economic slump. An array of residential properties is coming up all across the city. The following post explores the residential property market with a focus on south Bangalore.

Bangalore Property Market

Popularly known as the Silicon Valley of India, Bangalore contributes 33 percent of Indian IT exports.

Bagmane Tech Park, Banglore

The city is home to nearly 800,000 IT/ITeS professionals and this accounts for about the 55 per cent of the total demand of the organized real property market of the city. The total residential households in Bangalore has increased at a CAGR of over 6 per cent over the last five years with an average of nearly 95000 new homes being added almost every year. With an estimated residential market size of 92 million square feet, the real estate market contributed greatly to Karnataka’s Gross Domestic Product (GDP).

However, the economic slump had affected the real estate market to a certain extent and while there was slow progress in sales, within a few years, the market gained a renowned momentum and the real estate market bounced back. And now according to experts, the complete residential households in Bangalore continue to grow at an average of 5–6 per cent per annum. This growth has been led by the coming of several new migrants. 

Trends within the Bangalore Realty Market

Some characteristic features of the Bangalore realty market comprise the following:

• The rental property market of Bangalore is more in demand owing to millions of IT professionals. Most of these professionals choose to reside in flats on rent in Bangalore. It has been observed that the Bangalore residential realty market is highly fragmented with a large presence of both—organized and unorganized players.   
• Small apartments in Bangalore are in much demand especially among the IT professionals. This is because these are not only affordable but also easy to maintain. South Bangalore is one of the major micro-markets within the Bangalore property market. 

South Bangalore Property Market

Banglore Skyline at Night

Let’s explore the south Bangalore property market in a little more details:

This part of the city is comparatively posh and this is where the major IT hub is located. Some major developments worth noting in this part of the region are explained below:

Home to the Electronic City, several other locations of the region are growing in leaps and bounds. The locality named Bannerghatta Road is all set to evolve into a prime location in south Bangalore. Many reputed builders have been capitalizing on the potentialities of the region; and thus a host of new residential projects have been commissioned. High-end localities, the price band of apartments usually range from INR 90 lakhs to INR 4 crores in this area.

Begur Road, lying very close to Banerghatta Road has turned out to be a good real estate market for investments. An upcoming area, the prices of residential properties in Begur Road range between INR 2800 to INR 3500. Considered an affordable region for property investment, the locality is home to multiple smaller projects.

Alternatively, the micro-market of the Electronics City offers residential properties at a cost of INR 3000 to INR 4000 per square feet. In this region, the mid-segment housing has been the biggest grosser.

Jigani, an industrial area within the south Bangalore region has recorded a boom with reputed builders foraying into the market while Kanakpura continues to be one if the favourite locations for real estate investments. From affordable to mid-segment – all kinds of properties are available in this region and it is expected that this market will consolidate in the near future.

The south Bangalore property market is only a microcosm of the total property market of Bangalore. Moreover, with a rapid infrastructural boom the property market is expected to witness a better future with more stability. Investing in the Bangalore real estate market is definitely worth.

About Author:

Sampurna Majumder writes on behalf of 99Acres, which is an internet portal dedicated to meet every aspect of the consumers’ needs in the real estate industry. It is a forum where buyers, sellers and brokers can exchange information. At 99 acres, you can advertise, search, sell as well as rent a property. The above takes a look at the Bangalore property market.