East, North Bangalore witnessing high property growth

There is organised residential development across various formats

According to a study conducted on recent trends in property transactions in Bangalore by private real estate consultant, CB Richard Ellis, on behalf of the department of Stamps and Registration, proximity to the international airport in north, good connectivity in south-east and increased commercial activities in south will propel the growth in these places in future.

South Bangalore, which houses a large number of IT companies and MNCs, has almost reached a saturation point. In future, this ‘tech zone is likely to witness high concentration of commercial activities.

South, South-East and East Bangalore, comprising Koramangala, Sarjapur outer ring road, Hosur road, Bannerghatta road and Whitefield outer ring road saw a substantial growth in the decade from 2001 to 2011.

The growth was backed by  the IT boom, and much of the development was witnessed in the apartment format.  During the tough days of economic slowdown between 2008-2010, property prices in south and south-east Bangalore underwent maximum correction -- between 15 to 20 per cent.

The prices had skyrocketed between 2005 and 2008 in these zones. “However, since 2010, the residential market has witnessed marginal escalation in prices on account of robust sales and increasing consumer confidence in job market,” the study report, a draft of which was submitted recently to the department, stated.

Substantially higher levels of property development activities are expected in north Bangalore -- between the outer ring road and the proposed peripheral ring road -- along Bellary road (NH-7). East Bangalore, which houses ITPL, too is set for high growth in coming days due to its proximity to the international airport. Sarjapur outer ring road corridor has emerged as the most preferred destination for property buyers in the recent past, the study revealed.

Stabilising

Annual average absorption of dwelling units, which had nose-dived from 20,000 to 15,000 during the slowdown period, has started picking up from 2010.

In 2010, 15,416 dwelling units were absorbed, against 13,413 in the last year. In 2005, 23,534 units were absorbed, which was the highest. The total cumulative supply, including the under construction and planned projects, in the last five years is estimated to be 1,50,100 units, and of this, 13 per cent has remained unsold, the study said.

The number of under construction projects in 2010 were 6,398 as against 10,660 in 2009 and 15,382 in 2008. As many as 4,014 dwelling units were in the pipeline in 2010 against 1,980 last year. In other words, the market is making a slow recovery.

The report has concluded that Bangalore is witnessing organised residential development across various formats of housing like apartments, villas and row houses. Apartments format is the most popular.



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