The bubbling real estate hub
The City sold 22,234 residential units as compared to 14,250 units in NCR, 15,524 apartments in Pune and 9,091 units in Chennai and has witnessed highest new launches as compared to the top eight cities in the country, with 21,400 units launched in the first half of 2015.
On the path to success
Long known as the Silicon Valley of India, Bengaluru is the pioneering hub of IT
revolution in the country. The city emerged as the IT hub in 1990s, when several multinational technology firms set up their base here. Bengaluru has aided India’s debut on the City Momentum Index (CMI) Top 20 list — an annual survey carried out by real estate service provider Jones Lang LaSalle (JLL) globally. It reinforced the city’s status of being one of India’s premier technology centres. In fact, a United Nations report
titled State of the World’s Cities even praised Bengaluru’s IT revolution and according to a recent study by JLL, Bengaluru has been ranked among top 20 technology-rich cities.
As one of the fastest growing cities, Bengaluru is emerging as an ideal location for education and research as well. Every year, Bengaluru attracts a sizeable student population from pan-India. The city is also a home to several international education institutes.
Bengaluru has more than 125 R&D centres in the field of core engineering, information technology, basic and applied sciences and the like. The City is one of the top choices for engineering students and aspirants. Bengaluru is also known as a centre for health tourism. The Garden City is full of opportunities for everyone.
Consequently, these factors bode well for the real estate industry in Bengaluru, with many desirable markets across varied strata of the society. A recent report by Bank of America (BofA) Merrill Lynch showcases that Bengaluru’s housing is attractive mainly due to its affordability. In particular, the outskirts of the City are a highly potential market due to the profitability and promised growth in the area. Profitability from investment in the outskirts is bound to be high due to the development in and around the City limits. Investing a small portion of your savings in the outskirts can yield you significantly higher returns over a period of time.
Experts suggest that Bengaluru will continue to hold potential for developing affordable housing projects in the future. The rate at which people are migrating to Bengaluru has increased significantly due to rise in employment opportunities. This will eventually lead to expansion of City limits and investment in the outskirts. There is already a huge demand, especially from the lower and middle-level income groups for affordable housing units.
On a broad scale, Bengaluru’s real estate scene can be defined as an end-user market. The sector in the City is not dominated by the speculative market influences as compared to others.
Professionals with disposable income have recognised the potential of real estate investment which have higher returns as compared to other asset classes. The developers here have a wide range of offerings from luxury apartment to mid-range apartments.
So, if you are looking to invest in the City, here are some viable options:
Located at a distance of six km from Electronic City, Chandapura is easily accessible. Phase II of the metro project will be completed by 2020 in the area and Chandapura Circle is already included in the rail network. The location has multiple renowned educational institutions like IFIM Business School and Institute of Health Management Research (IHMR), among others.
Hennur is situated in North Bengaluru and has good road connectivity. Just 12 km away from MG Road and 17 km from Koramangala, Hennur is perfect for music and food lovers and is one of the prime locations with ongoing development projects in and around the area.
WhitefieldWhitefield recorded a boom in the residential constructions in the latter half of 1990s. Easily accessible through extensive bus network, Whitefield is expected to get metro connectivity during the second phase of Namma Metro project.
The area has various shopping malls like The Forum Value, Phoenix Market City, Park Square mall and Inorbit Mall.
Besides, the various other entertainment spaces in the locality widen the scope of
investment in the area.
Devanahalli is located close to the Bengaluru International Airport, the second largest airport in India. The area has witnessed significant development due to Devanahalli Business Park. With two more IT parks coming up adjoining the airport, this area would continue to be a business hub. An aerospace park, science park and a financial city are also planned around Devanahalli, which makes it one of the most preferred locations on the outskirts of the City.
As compared to other cities across India, Bengaluru has emerged as one of the best options for real estate investment. As one of the fastest growing metropolitans in the country, Bengaluru has a wide range of offerings in the real estate segment. The time, experts agree, is perfect to tap into the City’s investment potential and reap rich dividends.
(The author is senior vice president, Expat Projects and Development Pvt Ltd)