With steady property appreciation, City proves a safe bet for realtors

With steady property appreciation, City proves a safe bet for realtors

Capital value of property in Bangalore has appreciated by 20 per cent this year. This is up from 17 per cent last year and 15 per cent the year before that. 

Developers in the City will tell you that margins may not be extraordinary in the Bangalore market, but certainly steady and predictable. 

In short, selling properties in Bangalore is good for sellers as the property value steadily moves up, between 15 per cent and 20 per cent. Luxury properties, though, offer higher margins.

Why is Bangalore steady? 

Since the IT industry has become established and the performance of the sector being stable through ups and downs, it is for sure that there would be buyers for property, who after a few years, stand to gain if they decide to sell it. There may be the pinch of paying a bit more than expected while buying the property, but that is offset by the high price of the property when it is sold. 

With the average capital appreciation being consistent, there is confidence that investing in Bangalore market is safe.

The City has also grown in traditional and modern retail rapidly. This has come about because the investors in retail have realised that the City has very good catchment areas.

Suresh Hari, secretary of the Confederation of Real Estate Developers of India, points out that Bangalore has three major catchment areas in Koramangala, Jayanagar and Indiranagar, where the density of the buying population and their average incomes are high. 

All the three areas have brand streets that have given Bangalore a global hue. Apart from this tri-market, there is another consumer market growing rapidly – Hebbal region, Whitefield, Marathahalli and Sarjapur. All of these are self-contained hubs within Bangalore.

One example is the Phoenix mall in Whitefield. A regular visitor to the mall, Rajeev Ram, a software engineer in his 30s, told this paper that the mall hosts international music bands frequently and has become the major social meeting point in Whitefield. 

Children find the mall entertaining, a universal aspect seen in the well-off areas.Builder Garudachar has been saying that areas around the central business district have residences and people who can afford social entertainment.

The old and new residences around Lavelle Road, Commercial Street, Ulsoor, Old Airport Road have good buying population, who frequent Central and Garuda malls.

Large retail sector

A vast retail sector infuses confidence in the developers to go in for mega projects because a large retail sector implies a large buying population. The mid-income level flats do well, while the demand for luxury flats too is high. 

“If all these conducive economic conditions persist over a period of time, capital appreciation happens naturally. There is faith that each arm of the Bangalore economy rests on the other, which indicates confidence. As long as none of the arms falls, the market will be buoyant and vibrant,” says economics researcher Sandeep Venu.

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