Bangalore - The Second Largest Real Estate Market

Published on June 4th , 2014
Bangalore Real Estate news
In 2013, Bangalore turned out to be the second largest real estate market with the launch of 1.23 Lakh new units, a figure tad less than the 1.25 Lakh units launched in the Mumbai Metropolitan Region (MMR). Despite a deluge of supply, inventory levels in Bangalore at 80,000 units are much lower compared to 1.1 Lakh in MMR, signifying an inherent demand. Unlike other national markets, prices in Bangalore are stable and affordable in the range of 4,300 per sq ft. All this is good news for investors and home buyers in Bangalore as they get ample affordable options to choose from.

The choice of location to buy a home in is driven by multiple factors but primary amongst them is a buyer's current work location and budget constraints. The Bangalore real estate market is divided into four geographical markets

North Bangalore :

Key micro markets contributing to residential supply in North Bangalore are Hebbal, Hennur, Thanisandra Road, Jakkur, Sahkar Nagar, Kalyan Nagar, Sanjay Nagar, Yelahanka and Devanahalli. Average prices in these markets range from 4,300 per sq ft in Thanisandra to 7,400 per sq ft in Hebbal. There are currently two business parks in Hebbal, North Bangalore- Manyata Embassy Business Park and Kirloskar Business Park, with many more in the pipeline. Some of the key upcoming commercial centres in North Bangalore are Bhartiya City on Thanisandra Road,Karle Town Centre in Hebbal, Aerospace Park in Devanahalli, IT and Hardware Park in Devanahalli. Multiple infrastructure projects such as widening of Bellary roads, completion of an expressway and the extension of Namma Metro will give North Bangalore an added edge.

East Bangalore :

Key micro markets in East Bangalore include K R Puram, Marathahalli, Whitefield, Outer Ring Road stretch from Marathahalli to Sarjapur Main Road, Varthur- Sarjapur Link Road and Sarjapur Main Road. The Average prices in these micro markets are 3,840 per sq ft in K.R. Puram, 4,200 per sq ft in Whitefield, 5,200 per sq ft in Marathahalli and 5,131 per sq ft for Sarjapur Road. Though North Bangalore is the most talked about real estate market, most new real estate projects are being launched in East Bangalore. Multiple large business parks including ITPL in Whitefield, Wipro Headquarters in Sarjapur, RMZ Infinity in K R Puram, Bagmane IT Park in CV Raman Nagar,Prestige Tech Park and Vrindavan Tech Park on ORR are setting up shop in East Bangalore. The presence of many key corporates lends itself to rising demand and prices. Peripheral Ring Road and STRR are a few of the key noticeable infrastructure projects in East Bangalore. Once completed, the connectivity of East Bangalore with North Bangalore will improve significantly.

South Bangalore:

Key micro markets in South Bangalore are Electronic City, Bannerghatta Road, Hosur Road, Kanakpura road, JP Nagar, BTM Layout and Begur Road. Prices in South Bangalore range from 3,600 per sq ft in Electronic City to 5,900 per sq ft on Kanakpura Road. South Bangalore is a hub of IT companies such as Infosys, Wipro in Electronic City Phase-1, TCS in Electronic City Phase-2, Oracle near Dairy Circle on Bannerghatta Road, Accenture and many more. A key infrastructure project in South Bangalore will be the operationalization of Phase 2 of Namma Metro that will connect it to West and North Bangalore.

West Bangalore :

Key micro markets in West Bangalore are Rajaji Nagar, Yeshwantpur, Peenya and Malleswaram. Amongst the four geographic segments, West Bangalore has the least number of new units launched. Prices in West Bangalore markets are relatively high compared to other markets. The average price of a new project in Rajaji Nagar is 10,300 per sq ft and Yeshwantpur is 7,080 per sq ft.

source: siliconindia