Bangalore (Bengaluru), known as the Silicon Valley and the garden city of India, is the capital of Karnataka. It is demographically a diverse city and one of the fastest growing metropolitan cities of India. The city boasts of numerous public sector heavy industries, software industries, aerospace companies, defences companies and telecommunication organisations. These varied high paying employment opportunities have played a major role in the development and stable and constant demand of real estate amongst different price brackets.
Real Estate Facts:
1. FY 11-12 – Period of strengthening and consolidating of Residential Capital Values.
2. City average growth rate to be at 7-9% annualised over the next 5 years
3. Pre-Launch Offers outperforming avg. market return by 3-8%. Delivering 10-15% annual return
4. 5 major zones : (North, North-East); (East, South-East), (South), (West, North-West), (Central Business District)
5. Absorption Level increase from Rs 3100/sq ft in 2007 to Rs 3700/sq ft in 2012.
Note : Inference is that Bangalore Market absorbs units at an average price of Rs 4200/ sq ft.
Reference: ICICI Bangalore Report Nov 2012
This information technology (IT) hub saw steady sales in 2012, prompting developers to launch new projects. Prices in under-construction projects in growing submarkets have risen by 10-30 per cent in the past one year.
Bangalore is expected to offer an annual return of 15 per cent over the next five years.
“The city is the lowest in terms of capital values (compared with Delhi and Mumbai) and has seen moderate price appreciation,” says Shveta Jain of Cushman & Wakefield India.
JLL suggests to go for residential projects in which units are priced between Rs. 80 lakh to 1 crore. 3 BHK units are going to be the fastest-moving and appreciating products in 2013.