Bangalore residential real estate market has been experiencing the stable waves of development with reasonable sale volume and proper growth in new launches. IT/ITeS sector is what the main influential aspect of the Bangalore’s residential real estate. Although the IT/ITeS sector has experienced a major slowdown in the economy a few year’s back; it has a significant influence on the real estate, residential as well as commercial. The popularity of Bangalore as IT Hub is well known across the country; Bangalore serves better in affordability, employment opportunities and favorable demographics.According to the geography of the city, the city has been divided into five different regions as Central Bangalore, South Bangalore, West Bangalore, North Bangalore and East Bangalore. North, East and South zones of the city have witnessed stable residential markets; with several new launches and prominent absorptions. Presence of IT Parks has major influence on the eastern and southern area’s residential market. Central residential market has observed several high end developments along with consistent absorption of properties whereas the western region has also observed an unexpected response from developers and customers.The overall Bangalore residential market was quite sluggish along the year 2012, but in the final quarter it picked up very high and launch of total about 35,000 new residential units was observed till the end of the year. The scene remained same in the year 2013 with several new launches by prominent builders and developers. Bangalore residential market has seen absorption of around 36,000 residential units in 2013 whereas it was accounted for 8100 sold units in the first quarter of the 2013.Region wise residential market lookupSouth Bangalore:
- Out of the total numbers of new launches 48 percent were seen in the South Bangalore region in 2012.
- The amount of new launches was the highest of all the regions in Bangalore for the year 2012.
- In first quarter of 2013, South Bangalore accounted for 29 percent of the total new launches.
- Sarjapur road was the high grossing area of the region.
South Bangalore new project launches:Prestige fems residency,Salarpuria Senorita,Mantri Serenity by Mantri Developers,Forest view of the Shobha Developers,North Bangalore:
- Bangalore International Airport acted as a catalyst in the real estate development in this region.
- North Bangalore accounted for 33 percent of the total new launches in the year 2012 as well as in the first quarter of 2013.
- Plotted developments and villas are the major infrastructures observed in the region.
- Hebbal has become an upmarket residential destination in this region.
North Bangalore new project launches:Nikoo kolmes by Bhartiya Group,Utsav Raaga by Kolte Patil developers,Prestige Misty Waters,Embassy Lake Terraces.West Bangalore:
- West Bangalore new launches were not as large as that of the other parts of the city.
- West Bangalore accounted for 11 percent of the total new launches in the city in 2012.
- In first quarter of 2013, it accounted for 30 percent of total launches.
- Launch of Provident Sunworth largely affected new launches in West Bangalore with launch of 1450 units.
West Bangalore new project launches:Provident Sunworth,One bangaluru West,Gold Country by Gidrej Group.East Bangalore:
- In both year 2012 and first quarter of 2013 East Bangalore accounted for 8 percent of the total new launches.
- The East Bangalore was the lowest of all other regions in Bangalore in terms of the new launches.
East Bangalore new project launches:Oceanus Classic of Oceanus Dwellings Group,Prestige Glenwoods by Prestige Group. Mid-end homes are the most favored trend in the Bangalore city hence the developers are mostly opting for the project with mid-end range. Although the mid-end homes are the new trend in the city, high-end homes have also been gaining steady momentum in the city. About 70 per cent of the launched projects were in the range of 2.5 to 5.0 million whereas houses below 2.5 million accounted for 8 per cent.In terms of absorption, Northern and Southern markets were observed to be little passive. The large availability of the properties and scarce infrastructure has influenced the overall absorption of the Bangalore.Quick points:
- North Bangalore will be the most favored amongst the buyers and will be one of the sought after locations due to the proposed infrastructure like elevated expressway, Monorail and high speed rail link etc.
- West Bangalore will also better development as it is going to be connected by Metro Rail.
- Southern Bangalore is greatly influenced by the IT/ ITeS workforce working in along the outer ring road.
- Whitefield in East Bangalore is the industrial hub of Bangalore which has increased demand in the region.
- Mid-level homes are the new emerging trend in the Bangalore and will continue to be.